Brownsville Public Utilities Board

The 2025 Integrated Resource Plan (IRP) for the Brownsville Public Utilities Board (BPUB) serves as a comprehensive long-term energy roadmap to provide reliable, affordable, and sustainable electricity to its customers. The plan outlines a balanced, data-driven strategy, adopting the 'Preferred Balanced Portfolio' (Portfolio #1), which consists of 40% gas-fired capacity and 60% renewable energy. Key focus areas include phased additions of solar, battery storage, flexible natural gas capacity, and enhanced customer energy management programs, built upon flexible natural gas resources, renewables, battery storage, and demand-side management. The objective is to achieve the highest degree of reliability with the lowest projected cost through a resilient and adaptable framework.

This document presents the 2026-2030 Electric Cost of Service Study and Rate Review. It evaluates the adequacy of FY 2025 revenues, identifies that future inflation will erode financial condition without increased revenues, and proposes rate restructuring to improve fairness, transparency, and economic development. Key areas addressed include cost allocation, rate design to align cost responsibility, and analysis of bill impacts for various customer classes by transitioning costs from fuel and purchased power to base rates.

The Finance Committee meeting covered the presentation and discussion of the financial performance report for the period ended January 31, 2026, noting positive metrics such as debt service coverage of 1.96 times and an over-recovery on fuel purchase and energy charges. The committee also reviewed the annual comprehensive financial report for the fiscal year ending September 30, 2025, which resulted in an unmodified (clean) opinion from the auditors, including a prior period adjustment due to a new accounting policy regarding compensated absences. Discussions included the required annual review and update of the Finance Committee Charter and a detailed presentation on the property insurance renewal for policy year 2026, where the consultant recommended approving the proposed program despite ongoing negotiations expected to yield premium reductions.

The meeting commenced with introductions and the approval of minutes from the previous meeting. Old business included discussion regarding the BPUB's presence during the holidays, such as the Christmas parade and sponsorship through the holiday village, noting there was no meeting in December. New business covered the availability of volunteer opportunities for upcoming events like Charo Days and Sombrero Fest, as well as scheduling Scout Government Day and Girls Night Out. A detailed presentation was given on Fuel and Purchased Energy Supply, covering electric system resources like the Calpine Nidalgo and Silus Way power plants, fuel agreements, and power purchase agreements, noting a reduction in the Fuel and Purchase Energy Charge rate. Another presentation focused on Protection and Controls, explaining their role in maintaining system safety and reliability through the use of breakers and relays, and detailing how data retrieval aids in fault analysis. The session concluded with a public comments segment, where a resident raised concerns regarding sewer pipe blockages in the Los Einos neighborhood.

The 2026-2030 Strategic Business Plan for Brownsville Public Utilities Board outlines a five-year roadmap aimed at empowering greater Brownsville's future through exceptional utility services, community leadership, and operational excellence. The plan focuses on key areas such as optimizing affordability and power supply, ensuring optimal water supply, modernizing for resiliency, reliability, and technology, enhancing customer experience and community engagement, and strengthening risk management and interorganizational effectiveness. The overall vision is to deliver safe, reliable, and affordable utility services that foster community growth, operational excellence, financial strength, transparency, and strong leadership.