Auburn officials are holding off for at least another week on a proposed four-year electricity supply contract as City Council members seek more information about a significant increase in the city’s power costs.
The proposed agreement with ENGIE would lock the city into a rate of 9.089 cents per kilowatt-hour through Sept. 30, 2030. Auburn’s current supply contracts are generally around 6.5 cents per kilowatt-hour, meaning the new agreement would represent a substantial increase.
Council left the contract tabled Thursday after Mayor James Giannettino said members had held numerous discussions with city staff since the issue was delayed the previous week.
Giannettino said council members should submit any specific questions to City Manager Jennifer Haines so the city’s comptroller and energy consultant can address them at the next meeting.
“This is a complicated topic that nothing is within our control other than writing the check to pay for it,” Giannettino said, adding that the council needs to make the best financial decision it can for the city.
The city has more than 100 electric meters and purchases its electricity supply through an outside vendor. Staff and consultant NextEra Energy solicited prices for contracts ranging from 12 months to five years before recommending the 48-month ENGIE proposal.
The 48-month ENGIE offer was the lowest available price among proposals received for that term. Shorter contracts carried higher rates, including 9.697 cents per kilowatt-hour for 12 months and 9.5 cents for 24 months.
City staff have recommended the longer agreement in an effort to stabilize costs in what they described as a rapidly increasing electricity market. The city’s current pricing expires this fall.
The issue also surfaced during public comment Thursday.
Auburn business owner Mark Barre urged council to secure a longer-term contract, telling members electricity prices paid by his business have risen considerably in recent years.
Barre blamed several state energy policies and reductions in generating capacity for higher costs and argued that rising electricity prices are putting New York businesses at a competitive disadvantage. Those claims were raised during public comment and were not independently established during the meeting.
The council is expected to revisit the contract after hearing additional information from staff and its consultant.
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