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City staff report finds big gaps between BoxMiner pitch and Mid State Electric rate calculations
Summary
Staff told council that revenue estimates provided by the project proponent diverged substantially from figures calculated using Mid State Electric's published rate schedules, leaving franchise-fee and power-sale projections uncertain.
City staff presented a technical review during the May 27 meeting showing that numbers supplied by the proposer did not match calculations based on Mid State Electric’s published rate structure. Staff said the proposer’s initial monthly gross-power figure of $1,252,360 (annualized to about $15,028,272) differed sharply from staff’s recalculation using the largest published rate table, which produced an annual gross figure in a different range and correspondingly different franchise-fee estimates for the city.
Staff explained the difficulty of computing a definitive fiscal impact because Mid State Electric’s current published large-load rate class caps at 9.9 megawatts; the proposed project is described as 20 megawatts and therefore would require either a new rate class or negotiated terms. Staff presented three options for council direction: (1) pursue further assessment, (2) enter purchase-and-sale negotiations, or (3) conclude the matter. The council chose the third option at the meeting.
Staff emphasized that some line items could not be calculated without a negotiated or newly established load rate and that the city should not rely on the proposer’s preliminary revenue estimates without corroborating rate agreements.
