WM Utility seals deal on money-saving energy contract

WM Utility seals deal on money-saving energy contract

City locks in four- year deal to keep rates low

news@theeveningtimes.com

Mayor Bill Johnson was all smiles as he announced City of West Memphis had landed a new three-year electric power supply agreement. The new rate is cheaper than the last go round per kilowatt hour (kWh).

“The last one was 5.5 cents for what we bought outside,” said Johnson.

“This one is for 4.6 cents.”

What does that mean for West Memphis utility customers? The bottom line is that there should be no rate increase during the new four-year agreement with NRG Energy Inc., according to the Mayor.

“We shouldn’t have to raise rates for four more years,” said Johnson.

It was urgent business for City Council, as the energy rates often shift from dayto- day. The NRG offer was good for one day only.

In order to suspend the rules and read out the ordinance, seven members of the City Council would need to be on hand.

“We want it read out today, but it will take seven,” noted Johnson in a pre-council work session.

And as roll was being taken as the Nov. 3 meeting was being called to order, the attendance hit right on the mark.

It was all put together with a great deal of urgency. The Utility Commission, driven by the one-day price offer, met at the same time at City Hall and voted to recommend the power agreement to City Council.

Utilities Manager John Rimmer reported the results to Council in the public session.

“The West Memphis Utility Commission met just prior to this meeting and recommended this for you to approve,” said Rimmer.

The current agreement with NRG for power supply is set to expire May 31, 2017. The Utility Department started the process for a new proposals in May of this year. Six companies replied with proposals and NRG came out with the lowest offer.

NFront Consulting brokered the power supply contract. Company representative Steve Stein pointed to continuity as one of the benefits of the renewed relationship with NRG during an executive recap for city officials during the council meeting “The new contract has a lower price good for today,” said Stein. “NRG Power Marketing LLC has supplied your power requirements since 2011. It seems they have done a very good job supplying power to the City of West Memphis in that time.”

“This is an excellent contract,” said Johnson before the final vote by City Council. “This should insure us stability for the four-year term of the contract.

Our rates should stay

stable unless we have a major catastrophe.”

Johnson also handed out kudos to the soon-to-retire Utilities Manager John Rimmer.

“Good job, John,” said Johnson. “He needs to stay here and enjoy this four years of stability.”

By John Rech