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Council approves resolution authorizing city manager's BPA 'provider-of-choice' power sales agreement
Summary
Monmouth voted to approve Resolution 2022 authorizing the city manager regarding a provider-of-choice power sales agreement with Bonavville; staff said tier-one power runs about 3.5 cents/kWh while open-market tier-two purchases are roughly 6.5 cents/kWh. Council also acknowledged the contract had been signed in October and asked for clearer protocol in future.
The Monmouth City Council approved Resolution 2022, granting authorization to the city manager concerning a provider-of-choice power sales agreement with Bonavville. Power & Light Director Wade framed the agreement as the result of multi-year regional negotiations that shift some procurement risk and set allocations for federal hydro, wind and other resources.
Wade told council the agreement protects the city's share of low-cost tier-one power and that current tier-one pricing is about 3.5 cents per kilowatt-hour while open-market, tier-two purchases can be roughly 6.5 cents per kilowatt-hour. "If we were out in the open market our rates would likely double," he said when explaining the lack of viable alternatives for an 18-megawatt utility.
Councilors asked whether staff had considered alternatives, how long-term the contract term is and whether the city manager had authority to execute the contract. Staff explained the city manager had signed the contract on Oct. 15 under prior practice, and the council subsequently moved to authorize the manager's signature formally. City Manager Michelle Anderson apologized for the procedural lapse and said she would ensure future agreements come to council when required.
Council moved, seconded and approved Resolution 2022 on a roll call vote (six in favor). The council asked staff to follow standard procedures on contract execution and to keep the council informed about potential future changes to regional capacity allocations.
