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Needles utility staff say summer power term purchases locked in at favorable prices
Summary
Board heard that summer term purchases from Western Area Power Administration for July–September were locked in at prices staff described as lower than the previous year, leaving around 10% to spot market purchases.
Staff reported to the Needles City Board of Public Utilities on June 2 that the authority transacted term power purchases covering July through September to hedge peak demand and that pricing this year came in lower than the previous year. Staff said they bought on‑peak volumes at about $58 per megawatt‑hour and off‑peak at about $48.50/MWh, with August quoted higher near $70/MWh; staff left roughly 10% of expected demand to the spot market.
The presentation explained the term purchases reduce exposure during the July–September peak months and that staff will monitor market conditions for purchases covering October–December. Board members asked clarifying questions about the megawatt quantities requested and the range of RFP pricing received; staff said they received multiple bids and would continue to look for favorable purchasing opportunities.
