Consultants present draft cost‑of‑service work: $56.8M utility budget, residential fixed cost estimated at $83/month

At the July 23 workshop, Leidos consultant Craig Shepherd presented Phase 1 of the electric cost‑of‑service study and a draft projection of FY26–30 revenues and requirements. "All that adds up to $56,800,000," the consultant said when summarizing budgetary drivers, which include bulk power purchases, transmission, distribution, debt service and transfers.

Consultants stressed a key contract risk: existing power‑supply agreements expire in 2028, and the draft model includes a planning assumption of up to a 40% increase in capacity costs for long‑term contracts to capture downside risk. Leidos also reviewed class allocation: residential customers account for roughly 43–44% of energy and 52% of peak demand on the system, and the draft distribution/customer fixed cost was estimated at about $83 per month per average residential customer. Staff said the work will continue and the final numbers will be brought back after additional modeling and updated budget inputs.