FPUA finance staff says rate-stabilization fund remains within targets; PCA held at $4

Andrea Sloan, finance manager, presented the July update on the power-cost adjustment (PCA), hedging and the rate stabilization fund. Sloan cited the base purchase-power rate at "$79.52 per kilowatt 1000 kilowatt hour" and said the PCA has been stable at $4 since February 2026. She reported the preliminary projected RSF balance for the end of July 2026 "to be just over 8,000,000," consistent with earlier projections.

Sloan described hedging positions: approximately 75% hedged until September, about 65% through March 2027 and about 55% until September 2027, with positions varying through March 2029. She presented a scenario staff had discussed with modeling that would lower the PCA to $2 in March 2027 if natural-gas prices hold, noting the projected effect on RSF balances would reduce them by about $300,000 in aggregate under the scenario. Sloan told the board no action was required at this time and staff will continue monthly monitoring and quarterly updates.

Board members commended raising the RSF target and asked whether summer consumption would materially affect projections; staff said August usage might reduce unit cost but that basis differentials can move sharply and the data presented are roughly one to two months in arrears.