Created by a city ordinance with the city of Stillwater, Okla., as the beneficiary, Stillwater Utilities Authority was established to operate and maintain the city’s utilities system. That system provides electric, water, wastewater and waste collection to Stillwater residents, businesses and industries.

Stillwater Utilities Authority is a public trust operating under a trust indenture dated April 1, 1979. The mayor and city council serve as trustees and govern the authority. The trustees approve the authority’s rates and budget. Through a designated formula, the authority transfers revenue to the city’s general fund, which the city uses for various services that benefit the residents of Stillwater. Stillwater Utilities Authority’s goal is to provide its customers with professional, reliable and friendly service.

Strong System

As the producer and transporter of energy for the city of Stillwater, Stillwater Utilities Authority’s generation and transmission division operates and maintains approximately 21 miles of 69 kV local transmission lines, eight electric substations, and electric-generating equipment with a combined output of 35 MWs. The electric distribution system includes 371 miles of overhead lines, 316 miles of underground lines, 8,585 distribution transformers, 12,238 poles, 3,791 streetlights and other related electrical equipment.

Stillwater Utilities Authority is a combined retail system purchasing low-cost, full requirements electric power and energy from the Grand River Dam Authority (GRDA). The authority purchases from GRDA pursuant to a recently renewed, long-term power purchase and sale agreement that extends to June 1, 2042. SUA has received wholesale power from GRDA since 1987.

The authority has broad revenue diversity because it receives electric, water and sanitary sewer system rate revenues, as well as one-cent sales tax revenues from the city of Stillwater. In addition, automatic utility rate increases recover a minimum of annual inflation costs.

Rate increases over the past several years have put the authority in good position to finance new infrastructure projects and balance system operations. 

Investment Areas

One of the authority’s recent ongoing initiatives is the development of a 56 MW simple-cycle, reciprocating engine power project. Burns & McDonnell has been selected by Stillwater Utilities Authority to provide engineering, procurement support and construction management services for the project.

These services include EPCM services for the power plant and the new 69 kV breaker-and-a-half substation. Besides the EPCM services, Burns & McDonnell has been retained by the authority to provide permitting (air, water, wetland and noise) consulting services and natural gas interconnection consulting services.

A full notice to proceed was issued in June 2014. Completion is projected to be in 2016. The reciprocating engine power plant will incorporate natural gas-fired, medium-speed reciprocating engine generators, which require negligible water usage using a closed-cooling water system for the engines. The power generation station project will generate regional contract awards for certain materials and services in Oklahoma and will create hundreds of construction jobs.

The natural gas-fired facility poses manageable risk for the authority. GRDA will be the authority’s market participant in the Southwest Power Pool’s new integrated marketplace and credit Stillwater Utilities Authority $4.3 million annually, plus an energy payment, following completion of the unit. The arrangement essentially preserves Stillwater Utilities Authority’s operating profile as a lower-risk distribution provider, rather than a vertically integrated retail system. GRDA retains the power supply risk.

Looking forward, the authority’s broad revenue sources should continue to bolster its financial flexibility and stability. The utility receives revenues across three systems – electric, water and sanitary sewer – and receives considerable sales tax revenues from the city of Stillwater.