Commission backs negotiating 7 MW of firm power from GRDA to boost stability

The Gardner City Utility Advisory Commission on April 2 recommended that the City Council authorize the utilities director to negotiate with the Grand River Dam Authority (GRDA) and the Kansas Municipal Energy Agency (KMEA) to secure an additional seven megawatts of firm capacity and energy.

Utilities Director said the seven megawatts are in addition to the roughly four megawatts the city currently receives from GRDA, which would bring Gardner’s GRDA capacity to about 11.5 megawatts and replace five megawatts the city expects to lose in April 2026. “We’re going to be able to not go to the market as much to buy power,” the Utilities Director said, arguing that more firm capacity would reduce exposure to volatile market purchases.

The director framed the choice as one of pricing stability: more firm capacity would be like a fixed-rate mortgage, while relying on market purchases is a variable-rate exposure. Commissioners asked about contract length and other commercial terms; the director said staff will negotiate the term and anticipates seeking a long-term contract and flagged that a 30-year term is a possibility to be discussed in negotiations.

Commissioner Paul moved to recommend the negotiation authority; Commissioner Augustine seconded. The commission approved the motion by voice vote; the record shows the Chair announced the motion carried. The commission did not record a roll-call vote in the transcript.

Why it matters: securing additional firm capacity can reduce short-term market price exposure for the utility and improve operational certainty for peak demand. Staff will return to Council with a formal negotiation request and contract terms once discussions with GRDA and KMEA have progressed.

Next steps: city staff will open formal negotiations with GRDA and KMEA and report back to City Council; negotiable details that remain to be settled include contract length, pricing structure, and delivery schedule.