Summary The City of Alachua entered into an agreement for wholesale electric service with Gainesville Regional Utilities (GRU) in 1992. The agreement was subsequently amended in 1998, 2008 and 2010. The most recent amendment in 2010 provided for a term of ten (10) years with an option to reopen pricing elements of the agreement after five (5) years. The City notified GRU on Dec. 16, 2015 that the City was exercising its option to reopen pricing elements effective Jan. 1, 2016.
Staff of GRU and Staff of the City of Alachua held negotiations during the prescribed 75-day negotiation period. The City, along with its consultant Bill Herrington of WHH Enterprises, worked diligently to achieve the best possible terms that were competitive with today's market as well as predicted future markets. The result is a proposed amended and restated agreement for a term of six (6) years effective April 1, 2016 and constant pricing of $58 per Mw-hr over the duration of the agreement. The City of Gainesville approved the agreement unanimously on March 17, 2016.
The proposed agreement provides the City with an immediate reduction in wholesale electric costs and secures a competitive rate for years to come.
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