Council heard a technical briefing on electricity market forecasts and contracting options from a PIE Energy representative, introduced at the Nov. 18 meeting as Mr. Watson.

Watson summarized ERCOT forecasts showing rapid peak-demand growth driven by data centers, crypto mining and industrial loads and noted the city currently has portions of its supply hedged at roughly 57 and 67 cents through 2032. He presented forward-market scenarios and said a 77-per-kilowatt-hour range is one option to lock in rates for years beyond 2032 and to avoid exposure if prices rise substantially in the coming decade.

"If you were to lock in at the 7¢ range today, for example, it would protect you down the road where if prices did go to $0.11–$0.12 in 2032, you wouldn't have to worry about that," Watson said. He also relayed industry projections that some observers expect 10'15¢ power, with more extreme projections above that; he criticized the highest estimates as unlikely but said 10'15¢ is plausible without additional supply.

Council members asked about cost now versus future risk, whether there is any upfront expenditure to secure a forward contract, and how grid delivery and infrastructure might constrain supply. Watson said contracting ranges vary (short-term to multi-year terms out to about 2038 were presented), that there is no cash outlay today for some contract structures but that terms and length affect price, and that delivery (delivery charges, Encore/utility side) and grid upgrades are separate challenges.

Council discussed potential impacts on ratepayers if the city did not hedge and wholesale prices rose; staff said higher wholesale prices could double or more the city's energy costs, which would flow into budgets and potentially into rates or reduced services. Several members said they favor protecting the city budget by studying a multiyear hedge and asked staff to bring detailed options and cost scenarios back to council before committing.

No formal procurement action was taken at the meeting; council directed staff to return with specific contract options and fiscal impact analysis.