City staff explains $225,000 MISO charge as council approves payment of utility bills

The Geneseo Committee of the Whole approved payment of city and utility bills following a detailed explanation from Eric, the plant operator, about a recent spike in Midcontinent Independent System Operator (MISO) market charges.

Eric said the MISO charge for a one‑week period (Feb. 23–30) was "roughly $225,000," and that the city also sold about $160,000 of energy during that window that offset a portion of the cost. "So it does come out to be roughly $66,000 for that week," he told the committee, then walked members through how day‑ahead and real‑time prices diverged during the cold snap.

He described operational responses the city used to limit exposure: using on‑site generation to hedge purchases when real‑time prices spiked, running generators when market prices exceeded a preset trigger, and managing fuel and natural‑gas constraints on the pipeline. Eric gave sample operational numbers (a $200/megawatt generation trigger, an estimated $140/megawatt generation cost, and an equivalent of about 14¢/kWh) and said the city maintained around 22,000 gallons of diesel on hand compared with the roughly 24,000 gallons used in the 2022 winter storm.

Committee members asked whether other municipalities without local generation would face higher bills; Eric said it depends on each utility's market setup and hedging capacity. After discussion, a motion to approve payment of the bills was made and carried by roll call with all members present voting in favor.

Why it matters: the discussion explained a material, short‑term budget variance in energy charges and clarified how the city's generation and hedging choices limited the financial impact.

Next step: payment proceeded as approved; staff will continue to monitor market conditions and fuel inventories.