11.E.
City Council Draft Agenda
- Meeting Date:
- 06/16/2026
- From:
- Nicole Antonopoulos, Sustainability Division Director
TITLE:
Consideration and Approval of Contract: Agreement for Purchase of Renewable Energy Credits with the Navajo Tribal Utility Authority.
STAFF RECOMMENDED ACTION:
Approve the Agreement for Purchase of Renewable Energy Credits with the Navajo Tribal Utility Authority for up to five years and authorize the City Manager to execute the contract.
Executive Summary:
Through the end of Fiscal Year 2025-2026, the City of Flagstaff purchases renewable energy credits (RECs) from Arizona Public Service (APS) to support its commitment to 100 percent clean electricity for municipal operations, at a cost of $2.50 per megawatt hour (MWh). Staff recommends transitioning to purchasing RECs from the Navajo Tribal Utility Authority (NTUA) at $1.85 per megawatt-hour, plus a 6% sales tax. This shift would generate cost savings for the City (~$21,000) while building a new collaboration with NTUA.
The agreement is currently still being reviewed by NTUA and will be attached to the final agenda.
The agreement is currently still being reviewed by NTUA and will be attached to the final agenda.
Financial Impact:
Project Name: Purchase of Renewable Energy Credits for municipal operations.
Cost: ~$76,479
Account Number Budgeted: All electricity accounts across funds in the organization
FY Budgeted Amount: approximately $97,000
Grant Funded: n/a
Funding Source: All funds
Cost: ~$76,479
Account Number Budgeted: All electricity accounts across funds in the organization
FY Budgeted Amount: approximately $97,000
Grant Funded: n/a
Funding Source: All funds
Policy Impact:
The City of Flagstaff currently purchases approximately 39,000 MWh of renewable energy credits (RECs) each year through the APS Green Power Partners (GPP) program at a rate of $2.50 per MWh, costing roughly $97,400 annually. With City electricity use projected to continue increasing due to a variety of factors, including weather, precipitation, operations, and the commissioning of new facilities, staff have evaluated alternative REC suppliers offering more competitive pricing. NTUA provides RECs at $1.85 per MWh plus 6% tax. Using last year's REC volume (39,000 MWh), the total cost through NTUA would have been $76,479 ($72,150 for RECs + $4,329 tax) compared to the APS rate of $97,400.
Previous Council Decision or Community Discussion:
The City Council discussed the purchase of Renewable Energy Credits for municipal operations at the April 28, 2026, work session. The staff summary and slide deck are attached to this staff summary.
Options and Alternatives to Recommended Action:
Not purchase the REC's and fail to achieve key clean energy commitments.
Connection to PBB Priorities and Objectives:
Connection to PBB: Environmental stewardship
Connection to Regional Plan:
Connection to Regional Plan: Increase renewable energy
Connection to Carbon Neutrality Plan:
Connection to Carbon Neutrality: 100% clean energy for municipal operations
Connection to 10-Year Housing Plan:
Connection to 10-Year Housing Plan: N/A