A. Bulk Power Cost Adjustment Update

Electric Advisory Board · 2026-05-04 · agenda_item

The City of Leesburg's Electric Advisory Board is reviewing updates on bulk power cost adjustments. This review involves understanding past adjustments, current strategies for managing power cost fluctuations, and the impact of market volatility, particularly recent extreme weather events. The city aims to maintain a balance in its power cost adjustment fund, around $3 million, to absorb market changes and ensure operational funds are available to pay for power costs, which represent a significant portion of the city's budget. The board is considering adjustments to the power cost adjustment rate to manage these fluctuations. This process involves analyzing energy charges, comparing projected versus actual costs, and discussing strategies for rate setting and fund management. Local contractors, suppliers, and service providers in construction, utilities, and related fields should monitor this ongoing review. Early engagement before final decisions on rates and operational strategies are made could provide opportunities to align services with the city's evolving needs.

fiscal year

26

cents per kWh

2

cents per kWh

2.25

cents per kWh

2.5

years ago

2001 or 2002

cents

two

cents

seven

dollars

3 million

dollars

50 million

dollars

80 million

dollars

15 million

dollars

15

dollars

60

cents

three

dollars

million

dollars

40

dollars

37

dollars

32

dollars

33

dollars

3

dollars

107 per thousand

dollars

5 million

percent

3

percent

6

dollars

4 million-ish

percent

8

dollars

139 per thousand

percent

1 to 2

percent

3 to 4

dollars

8 million

percent

10

percent

25