MORAN Moran City Council members put in motion Monday a plan to begin purchasing electricity through the Kansas Municipal Energy Agency, starting in mid-2020.
Council members received an updated wholesale energy proposal from KMEA general manager Paul Mahlberg, which is up a tick from what the consortium offered last August.
Morans energy contract with Westar expires in May 2020, marking the earliest the city can begin its agreement with KMEA.
As a part of KMEA, the agency will act as a single agent to purchase electricity for a host of cities. Deals are pending for others in southeast Kansas, including LaHarpe, Mahlberg noted.
The updated numbers would have Moran paying about $262,000 annually, including transportation costs, Mahlberg said. In August, KMEA representatives said Moran would pay about $256,000 annually.
Through its current contract with Westar, Moran pays a shade more than $400,000 annually.
Neil Daney, KMEAs director of projects and asset management, said he was leery on speaking for Westar, but noted the utility giant has an abundance of fixed infrastructure costs, which makes it harder for them to offer much in terms of price breaks to its customers.
Conversely, KMEA can take advantage of lower market prices, which in recent years have been driven by low natural gas prices.
And wind generation has changed the market, Mahlberg said.
A seven-year contract will be presented to the Council for its approval in April, Mahlberg said.
IN A RELATED matter, City Superintendent Mike Stodgell told Council members putting in new utility meters that can be read electronically would cost upward of $47,000, plus another $2,500 in annual costs for software.
Such meters would be beneficial because they could be read automatically.
Having new water meters might also help the city pinpoint water main leaks.
City Clerk Lori Evans noted Moran has experienced some pretty serious water losses this winter.
