During the City Council workshop this week, it was disclosed that the expenses in the electric fund exceeded budget. The following is the city statement:
The Electric Fund experienced higher purchased power costs than projected. Capital improvement projects are also over
budget due to a substation project and increased development. The fund is projected to be $6 million over expenditures. Staff
are developing a plan to bring the fund into balance and to cover the 75 day contingency reserve.
During May through August of this year, power consumption was far below normal because the temperature averaged 5 degrees below normal. The city contracted for "near peak" power during that time and found themselves with excess power capacity which could not be sold at a profit
on the market. This resulted in a loss.
Since we have been told repeatedly that the city has a 25 year contract for wind generated electricity, presumably at a fixed price with inflation escalators, and it currently supplies 100% of Georgetown's demands, why is the city contracting with ercot for electricity at near peak rates? We have been told by city officials that these long-term contracts for wind and solar generated electricity would provide predictability and stability in electric rates.
This is why we, the citizens of Georgetown, need transparency in all the city departments, including the electric company.
I do not believe the "green" energy purchased by the City is "on line" yet. Key questions for me as a consumer are 1)When will green be a on line? 2.How is the $6MM deficit covered? (If there are say 25,000 consumers in G'Town that's $240 per consumer.)
ReplyDeleteAccording to a Wilco Sun interview on March 22, 2015, Jim Briggs said the wind energy contract supplies energy for up to 34,000 homes. The wind turbines came online in early 2016 and provide 144 megawatts of electricity. The same article says that Georgetown had 20,964 utility customers as of March 22, 2015. So there is sufficient "green energy" online to meet Georgetown's current demand.
ReplyDeleteThe $6M is being paid from cash reserves that was targeted for IT upgrades. The IT upgrades will be funded through the sale of bonds!
Is there an email address i can send you something? I think it would make for a good blog and would certainly interest you
ReplyDeletetwputnam@pacbell.net
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