The meeting began with an in-depth presentation titled “Electric 101,” designed to equip board members with foundational knowledge about the electric department’s structure and operations as they approach the budget process. This presentation provided an overview of the different types of utilities in the United States, distinguishing between investor-owned, municipal, and cooperative utilities. Municipal utilities, like Leesburg’s, are community-focused and return revenues to the city to support public services. The presenter emphasized that while investor-owned utilities prioritize shareholder profits, municipal utilities aim to deliver community service, with Leesburg capping its revenue transfers to 6% of electric revenues.

A significant portion of the meeting was dedicated to discussing the generation and distribution of electricity. Approximately 70% of Florida’s electricity is generated from natural gas, a point of contention given the industry’s push towards renewable energy sources.

The board was briefed on the Florida Municipal Power Agency (FMPA), which supplies power to municipal utilities like Leesburg through initiatives such as the All Requirements Project (ARP). The city’s membership in this project allows for coordinated energy procurement, essential for meeting the utility’s $200 million budget, of which $55 million is allocated to wholesale energy purchases from FMPA. The complexities of electricity rates and the balance between fuel-based and renewable energy were discussion points.

Infrastructure was another key topic, with discussions on the city’s five existing substations and plans for a sixth as demand grows. The importance of the transmission and distribution system, employing both overhead and underground lines, was highlighted. Although new constructions trend towards underground systems, the practicality and cost-efficiency of maintaining overhead lines, especially during storm conditions, were acknowledged. The board noted that while underground lines offer better aesthetics and potentially fewer outages, overhead systems often allow for quicker restoration times.

The board discussed the city’s electric territory and potential growth areas, noting that a portion of future development may occur outside Leesburg’s jurisdiction, in areas served by Duke Energy and SECO Energy. This could complicate rate-making policies, as decisions may be influenced by commissioners not directly involved with the utility. Concerns were raised about representation and influence in governance, particularly since 60% of the utility’s 27,854 customers reside outside city limits.

Financial pressures, including the doubling of transformer prices since 2019 due to inflation, were also on the agenda. Although the electric department has maintained its base rate, there is an expectation of future adjustments. The board acknowledged the potential for a power cost adjustment to increase, driven by industry-wide pressures rather than local governance. This discussion was framed within the context of balancing operational costs with customer service, with the board debating the merits of advanced notification systems versus traditional communication methods to manage costs and customer bills.