Lima to save $400K on cheaper electricity

By Josh Ellerbrock -

LIMA — A reverse online auction has enabled the City of Lima to save $400,000 over a four-year period due to finding the lowest price for its electrical services.

Mayor David Berger estimates the City of Lima currently pays $1.2 million annually for its electrical services throughout multiple locations, but thanks to the low bid by Texas-based retail electric provider, MP2 Energy, the city can buy electricity at a cheaper price — $44.21 per 1000 kilowatt-hour.

Berger said this is the third time the city has used reverse auctions to ensure the city is taking advantage of the best bidding outcome, and the latest auction result establishes a fixed predictable cost for future budgets by locking in the low energy prices for the next four years.

The City of Lima is currently reviewing each department’s budget to find ways to restrain expenditures for the 2019 fiscal year. Finance Director Steve Cleaves said the city is aligned well with estimated spending and revenue activity, and its cash balance is strong enough to survive through a recession.

This past year, the city made substantial capital investments throughout safety services and the streets department. The $3 million worth of capital purchases include buying multiple vehicles — trucks and ambulances — as well as construction updates to the Chief William K. Davenport Hall of Justice.

“Next year, we’re going to tap on the brakes a bit to ensure that going forward the city stays in strong shape. I’m sure we can do that,” Cleaves said. “And the good news on the electric auction, saving the $400,000 is a good start.”

The electric service contract will go into effect starting in 2020.

By Josh Ellerbrock

Reach Josh Ellerbrock at 567-242-0398.

Reach Josh Ellerbrock at 567-242-0398.

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