Leesburg electric fund: DOE grant expected to cover majority of North substation transformer; no FY2027 rate increase planned

At the July 9 FY2027 budget workshop, the Presenter and staff reviewed pressures on the electric fund and said a pending Department of Energy grant will cover most of a planned North substation transformer purchase.

"We actually have $2,000,000 in the budget now. So this would pay for 1.7 of that," the Presenter said, describing a grant that would reduce the city’s net share for the transformer. Staff said the grant would lower the city's portion of the project (presented figures indicated a reduction in the city share from the previously noted amount).

Staff also reported there will be no electric-rate increase for FY2027. The Presenter credited savings from renegotiating the AMI (advanced metering infrastructure) project — roughly $323,000 in reduced costs — and noted the budget anticipates lower wholesale purchase-power costs compared with FY2026 projections.

The meeting covered other electric capital work: staff said reconductor projects (labeled 702 and 703) are pending and described a total reconductor project budget of about $1.2 million, with an expected outside contribution of approximately $936,000 for one element. Commissioners asked about comparative regional rates; staff said Leesburg remains below some investor-owned and municipal peers and noted the city’s long-term membership in an all-requirements project contributes to rate stability.

Staff framed the DOE funding and reconductor actions as positive steps that could reduce near-term capital burden on the electric fund but said paperwork and approvals remain pending. No rate changes or binding decisions were adopted during the workshop.