Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Utilities topic
No spam. Unsubscribe anytime.
Odessa officials review electric charge formula after engineers's interpretation questioned
Summary
City staff reported that the ECA formula and ordinance have remained unchanged since 2019; an interpretation question raised by recent engineering review prompted the board to order further investigation rather than immediate rate changes.
City staff told the Board of Aldermen that the city's electric cost adjustment (ECA) formula and its related ordinance have been in place, unchanged, since 2019, and that recent scrutiny centers on how engineers interpreted that formula when the city stopped generating electricity.
Sean provided a historical account to the board, saying the city had a PCA/ECA ordinance dating to at least 2005 and that engineers were retained in 2018 to examine electric rates after the city ceased local generation. "The ECA formula, the ECA rate or ECA ordinance and the ECA formula have been exactly the same since 2019," Sean said, and he described the current issue as "an interpretation question" being investigated by staff and consultants.
Council members pressed for timetables and accurate data for the rate study. One alderman warned the matter affects the budget and should be corrected this year rather than deferred: "It doesn't need to affect next year's budget. It needs to affect this year's budget," that alderman said, urging the board to present the issue to all members for resolution.
Another member stressed the city's transparency and cautioned against public characterizations that suggest intentional misconduct. "To flat say the city is stealing," the member said, "...is incorrect."
Officials said engineers who previously worked on the study acknowledged an error in calculation or interpretation and that staff needs more time to complete the investigation and incorporate updated numbers into the formal rate study. No formal rate change was adopted at the meeting; staff will return with more information as the investigation continues.
The board did not take action on rates at this meeting; the matter remains under review and will be considered again after engineers complete the rate study.
