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Electric director reports rate‑stabilization fund recovery, reviews wholesale contracts
Summary
Joe Farley told the Weatherford utility board that wholesale power contracts and current natural gas prices leave the city with a rate‑stabilization fund near $15 million and that staff will continue monitoring market risks and contracts.
Joe Farley, director of electric utilities, presented the quarterly electric risk-management report to the board, describing the city’s wholesale power-supply contract mix and recent natural gas price trends.
Farley said the city currently holds two fixed-price wholesale power contracts and one contract that floats with the natural-gas market. He reported a December-forward effective natural-gas price near $3 and a NYMEX figure cited at $3.43 for that near-term slice, and added a 12-month rolling average natural-gas price of about $2.72 (NYMEX average ~ $2.30).
On the rate-stabilization fund, Farley reviewed the post‑Uri adjustments: the fund target range was set with a minimum near $12 million and a maximum near $16 million and the city had rebuilt the fund to about $15 million as of the most recent report. Farley said staff will continue annual evaluations of the fund’s targets and bring recommendations to the board if conditions require adjustments.
Farley also compared local retail rates with other municipals and cooperatives, noting Weatherford’s retail rate is roughly comparable to similarly sized municipal systems and cited a retail-rate example of 13¢ per kilowatt-hour tying Weatherford with a larger municipal provider as a mid-range comparator.
Board members had no follow-up motions; staff will continue to monitor contract expirations and market prices and return with recommendations if needed.
