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Benton utilities report $775,000 month surplus; customers credited $182,000 under power‑cost adjustment
Summary
City finance staff told the committee that utilities reported $775,000 in combined revenues over expenses for May and that a power‑cost adjustment (PCA) returned about $182,000 to customers in June; staff said customers have been credited roughly $324,000 since the PCA began in July 2025 and outlined plans to hire power‑marketing assistance to manage future market risk.
Benton finance staff reported a strong May for the city’s utilities, saying combined revenues exceeded expenses by $775,000 and that a June power‑cost adjustment returned about $182,000 to customers.
“We did have a power cost adjustment of eight‑tenths of a penny, or we paid back $182,000 to the customers,” the finance presenter said, summarizing packet materials and the PCA calculation method. The presenter broke down May results as electric $225,000, water $391,000 and wastewater $157,000 in revenues over expenses.
The presenter reviewed how the PCA works: the city tallies monthly transmission and energy invoices, estimates sales for the next month and prorates the resulting over‑ or under‑recovery. He said the city’s monthly estimates have been accurate (within 3–4%) and that the 12‑month net effect since the PCA began in July 2025 is a customer credit of about $324,000.
Councilors asked whether the total credits had been publicly shared; one member said he had shared the data and received positive feedback. Members also flagged the market risk from events such as extreme winter storms and growth in electricity demand. Staff noted that a bilateral purchase earlier this year helped avoid about $300,000 in additional costs during a price spike.
To manage risk, staff said the city is exploring contracting with a power‑marketing firm to assist with hedging and block purchases. “We’ve already started to set up a group meeting with that potential organization…so they can start helping us develop” a purchasing strategy, the presenter said.
Staff confirmed the PCA will continue under the current approach through the existing contract period (the presenter noted the contract runs to 05/31/2027) and discussed alternatives such as a three‑month averaging method to smooth price swings. No formal policy change was adopted at the committee; the committee moved on after questions.
The committee packet included the detailed PCA worksheets and the multi‑month reconciliation that supports the $324,000 net customer credit since the program began.
