After delaying a decision earlier this month to get more information, Auburn City Council unanimously agreed Thursday to lock in its electricity supply price for the next four years.
The city approved a contract with ENGIE at 9.130 cents per kilowatt-hour from Oct. 1, 2026, through Sept. 30, 2030, giving Auburn a fixed rate across its more than 100 electric meters.
The new price represents a substantial jump from the roughly 6.5 cents per kilowatt-hour the city has been paying under most of its current contracts.
Council had tabled the agreement earlier in September after members questioned whether Auburn would be better served by a variable rate, how the city’s energy consultant arrived at its recommendation and how much a higher fixed rate would affect the budget.
Those questions produced an extended presentation Thursday before council returned the contract to the floor.
City officials said an analysis provided by the consultant showed Auburn saved about $352,000 during a previous 15-month period by using fixed pricing instead of the weighted variable market rate.
Councilor Craig Diego questioned whether a variable-rate strategy could still produce savings, pointing to historical periods when market prices were below the city’s fixed rate.
Staff acknowledged that variable pricing can sometimes be cheaper but said Auburn would also assume the risk of significant price spikes, particularly during winter.
The decision comes with an immediate budget consequence.
City staff estimates approximately $262,850 in additional appropriations will ultimately be necessary across several municipal funds because existing budgets don’t contain enough money to absorb the higher electricity price.
The preliminary breakdown includes about $84,250 from general fund contingency, $3,000 in the landfill fund, $9,475 from electric fund balance, $20,250 in assistance for the enterprise recreation fund, $94,125 from water fund balance and $51,750 from sewer fund balance.
Those numbers remain estimates, and officials said some could change as department spending and potential staffing savings are reviewed.
Comptroller Mary Beth Leeson said the water fund is in a stronger position to absorb additional costs. The sewer fund is more complicated because its available balance will depend partly on closing out an ongoing capital project.
Another portion of Thursday’s discussion centered on NextEra Energy, the consultant assisting Auburn with electricity procurement.
Officials said the city doesn’t directly pay NextEra. Instead, the consultant receives a fee incorporated into the electricity supplier’s pricing.
Council members questioned whether Auburn should eventually seek qualifications from other energy consultants, even though city officials said the current arrangement doesn’t trigger the normal procurement requirement because the city isn’t directly paying NextEra.
Staff said that could be considered for future contracts.
The price itself also changed while the contract was delayed.
The original agenda packet listed a recommended 48-month rate of 9.089 cents per kilowatt-hour. Because energy prices are typically held for only a short period, the city obtained a fresh quote before Thursday’s meeting, bringing the rate to 9.130 cents.
Council amended the resolution to reflect the updated price before approving the contract unanimously.
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