The Great Falls Public Schools board voted during a special Dec. 29 meeting to approve a new four-year power contract that goes into effect Jan. 1.

The district has had agreements since June 2011 to purchase one megawatt for each of the 24-hours in a day.

The bulk purchase allowed GFPS to secure a lower rate and minimize exposure to monthly rate fluctuations, according to the district.

NorthWestern Energy provides distribution and transmission services, according to GFPS.

In 2023, the district entered into a five-year contract with Energy Keepers for electricity and at the time, the rate was $70.50 per megawatt hour.

GFPS board approves extended energy contract [2022]

Market conditions have “shifted considerably since then, including projected significant decreases due to factors in
the market,” according to GFPS.

Early projections indicated the district could get a rate as low as $60 per megawatt hour and the district received a quote on Dec. 29 with a decision deadline of noon Dec. 30 to lock in the price.

Because electricity represents a significant portion of the budget, it is important to secure the lowest possible rate while also locking in that rate for the longest feasible period,” GFPS staff wrote in their agenda report ahead of the special meeting on Dec. 29.

The district was heading into the third year of a five-year contract with a rate of $70.64 and Jim Morin, the district’s energy consultant, recommended a “blend and extend” contract to lower the megawatt hourly rate and extend the contract.

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Morin is also the City of Great Falls’ energy consultant and the city has executed several similar blend and extend contracts in recent years.

The GFPS blended rate is $61.75 per megawatt hour, equating to an estimated $242,963.70 savings over the remaining two years of the current contract, according to Superintendent Heather Hoyer.

The new contract extends through Dec. 31, 2029 and based on current market projections, is an estimated savings of $162,000 over the next four years, she said.

City releases energy cost bids [2024]

The district can reevaluate rates again during the contract term, but Hoyer said Morin advised against it since general trends have been evaluated for at least two years.

Luke Diekhans, GFPS’ business operations manager, said that locking in the electricity rate for the next four years helps the budgeting process since staff won’t need to estimate costs.