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Board authorizes staff to negotiate long‑term electricity contract, setting a price parameter near 6¢/kWh
Summary
Trustees authorized district staff to negotiate and execute an electricity contract through their broker within parameters discussed (board asked staff to secure rates below ~6¢ per kilowatt‑hour) and return the contract for ratification; options discussed included layered hedges and an 83‑month fixed term proposed by a supplier.
District staff presented options for replacing expiring electricity contracts that run through June 2028 and recommended authorizing negotiations through the district’s broker, Tradition Energy. Ms. Jackson reviewed 10 years of fixed/hedge rates versus market rates and said the broker identified a window in which locking a portion of usage could be advantageous. "Our brokerage went out, asked for request for proposal. Shell Energy came back as the strongest, cheapest option…they came in at a rate presented in the slides at about 0.05960 per kilowatt‑hour and for 83 months," Ms. Jackson said during the presentation.
Board members discussed a layered hedging approach (for example, locking 50% of usage now and later locking additional percentages) versus a full long‑term fixed contract. The board approved a motion authorizing the district to execute a utility contract through Tradition Energy within the parameters discussed and to return the completed contract for ratification provided the final negotiated rate stays below the board’s ~6¢/kWh threshold. Trustee Latanya Woodson Mayfield moved the authorization and Trustee Watkins seconded; the motion carried.
