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Record of Proceedings

Cleveland Utilities Committee Hears CPP Strategic Plan and Rate Study – October 29, 2026

City Council Meetings — Thursday, October 29, 2026
BodyCleveland, Ohio
SessionCity Council Meetings
DateThursday, October 29, 2026
StatusNEW · FILED
Video Record
0:00 / 2:55:43

Original source
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Speaker numbers apply only to this recording.

Unassigned speaker

4:45

Well,

Speaker 1

10:45

But I don't have the legislation.

Unassigned speaker

10:51

Today we

Speaker 1

10:51

have uh two pieces of legislation that we're gonna hear first, and then we have the uh presentations from the

Unassigned speaker

10:58

Department of Public Utilities, the

Speaker 1

11:00

overview of

Unassigned speaker

11:01

the plan, and the

Speaker 2

11:02

cost

Unassigned speaker

11:03

of service bringing study.

Speaker 1

11:04

Uh, director, if you want to come on up.

11:10

We'll start with ordinance number eleven seventy-two twenty twenty-six by council members Casey and Griffin by departmental request and emergency ordinance authorizing the director of public utilities to amend contract number CT two zero zero four LS two zero zero four star zero two four to substitute the name of the leaser from City Rose LTD to Darley Holdings Group LLC or its designees and to extend the term to a seven-year term with one five-year option to renew exercisable by additional legislative authority.

11:45

Director,

Speaker 2

11:45

thank you, Chairman.

11:46

This is the East Service Center of Cleveland Public Power, one forty-one hundred Darley Avenue.

11:53

The owner um uh the owner that we had a lease agreement with, um, transitioned, changed, uh well, he passed away, and then the somebody else bought it.

12:04

So we have luckily with Commissioner De Janeiro and her group negotiated um to stay there with favorable terms.

12:11

Uh, but we need the amendment for the name change, and then we are looking to extend it uh to a seven-year term with one five year option.

12:19

Currently, there's five years left on our term.

12:23

There's three years, so we're looking to extend the terms.

12:26

Um, under the same uh, essentially the uh monetary obligation for Cleveland Public Power.

12:33

Again, as council's aware, this is where on the Darley Avenue CPP uh houses their low tension linemen, all the underground crews storeroom managers and mechanics.

12:44

So we're looking to continue that operation for Cleveland Public Power and their customers.

Speaker 1

12:48

Any addition to the um the rent that uh the money that they pay?

Speaker 3

12:55

Uh no, Mr.

12:56

Chairman.

12:57

The rent will remain the same for the full sub for for the additional five years.

Unassigned speaker

13:02

All

Speaker 1

13:02

right, Director, whose ward is the service center

Unassigned speaker

13:05

in.

Speaker 3

13:07

It's ward nine.

13:10

Yes, Councilman Conwell.

Speaker 1

13:11

All right, did you have a conversation with Councilman Conwell regarding regarding this?

Speaker 2

13:18

Um, because I forgot that it changed from Councilman to Councilman Conwell.

13:24

Uh, I certainly can have that if this is received at finance.

13:28

I can do that.

13:29

Uh, this week.

Speaker 1

13:31

Can you please do that?

13:33

Well, I don't want to vote on a piece of legislation in somebody else's ward without without their knowledge of it.

Speaker 3

13:40

And I did notify Councilman Conwell, Mr.

13:43

Chairman, and left the message for him this morning, but we'll follow up.

Speaker 1

13:46

All right.

13:48

Any questions from the committee?

13:51

Seeing none eleven seventy-two twenty twenty-six stands approved.

13:56

Please sign

Unassigned speaker

13:56

up.

Speaker 1

14:00

Ordinance number 1229 2026 by Council Members Casey and Griffin by Department of Request an emergency ordinance to amend section one of the ordinance numbers 600-2026 passed July 15, 2026, relating to contracts with ST Engineering Telematic Wireless Limited for upgrades and modifications to manage the bright city lighting system.

14:24

Director?

Speaker 2

14:25

Thank you, Chairman.

14:26

We were just in front of this committee in July for the continuation of the relationship with the Bright City platform.

14:32

This is an amendment to that ordinance.

14:34

We're requesting to add approximately 50,000 and language that would include professional services for platform feature enhancements, database integration, and data maintenance.

14:45

So in the conversations about the continuation of the relationship, learned about some new potential opportunities in the um platform, which we felt could assist in uh enhancement of the services for Bright City, which is the LED Street Light Program and its communication back to CPP.

15:06

So again, the effort is to continue to enhance and improve this technology to deliver the services for uh the street lighting group or for all of our neighborhoods.

Speaker 1

15:19

And is this uh 139,781 dollars a year, or is it for a total of the three-year period?

Speaker 2

15:27

The three-year period going from 89,781 to 1397.

Speaker 1

15:32

Any questions from the committee?

15:34

Seeing none 1229 2026 stands approved, please sign

Unassigned speaker

15:39

up.

Speaker 1

15:49

All right, director, you guys have been working on a uh strategic plan for Cleveland Public Power for some time.

16:00

And in meeting with the Department of Public Utilities, it's come to our attention that you guys are ready to present the the plan to Cleveland City Council.

Discussion Breakdown — Share of Meeting
Public Utilities█████████████████████████████████████████████63%
Public Engagement████████████17%
Procedural███4%
Energy Management███4%
Strategic Planning█2%
Public Safety█2%
Fiscal Sustainability█2%
Budget Equity Analysis█2%
Contracting Process█1%
Summary of Proceedings

Cleveland Utilities Committee Hears CPP Strategic Plan and Rate Study – October 29, 2026

The Cleveland City Council Utilities Committee met on October 29, 2026, with a recorded start time of 13:50. The committee approved two emergency ordinances, received Cleveland Public Power's strategic plan overview, and heard the Phase Two cost-of-service rate study for 2027-2029. Council members repeatedly asked for more concrete timelines, clearer rate-impact information, and a defined list of improvements before supporting new rates.

Consent Calendar

  • Ordinance 1172-2026: Emergency ordinance authorizing the Director of Public Utilities to amend CPP's lease contract for the East Service Center at 14100 Darley Avenue, substituting the lessor from City Rose Ltd to Darley Holdings Group LLC and extending the term to seven years with one five-year renewal option. The Director told the committee the monthly rent obligation would remain the same. Ward 9 Councilman Conwell was notified; the committee approved the ordinance without objection.
  • Ordinance 1229-2026: Emergency ordinance amending the Bright City street-lighting platform contract with ST Engineering Telematic Wireless Limited, adding approximately $50,000 for professional services and raising the three-year contract amount from $89,781 to $139,781. The committee approved the ordinance without objection.

Public Comments & Testimony

  • Lou (last name not provided) said residents still do not see how rate-study data translates into daily reliability, questioned data-center power use in residential areas, and urged council to provide proper oversight.
  • Craig Eckler, a Ward 6 resident, Energy Democracy Organizer with Cleveland Owns, and member owner of Cleveland Solar Cooperative, opposed the net-metering changes passed in July 2026, stating they hurt local solar development, local installers, and working families. He urged the committee to restore the previous policy.
  • Roger Sykes, a Ward 12 resident with Solar United Neighbors, said the net billing credit reduces the value of rooftop solar energy in CPP territory by at least 25% and likely more, making rooftop solar harder for CPP residents. He asked the committee to reverse the policy and work on next steps.

Discussion Items

Cleveland Public Power Strategic Plan Overview

  • The Director described the strategic plan as the start of a living conversation, not a finished document. Its pillars are reliability and reputation, internal fundamentals, and growth and financial health. Major programs include smart-grid enhancements, substation rebuilds, targeted sectionalization, reliability-centered maintenance, the airport interconnection, and local renewable generation with battery storage.
  • The Director said a project management office would be forward-looking and could launch within about 18 months, depending on hiring. The plan had been shared internally with CPP staff and some community members, with further engagement planned.
  • Council members raised concerns about the lack of concrete timelines and deliverables. Councilman Davis asked for analyses of underground cable condition and lessons from the July 2026 outages; the Director said those were not yet in the plan but could be addressed. Councilman Shah said Ward 12 residents expect a plan with goals and timelines, not just conversation; he also asked about expansion of CPP coverage, clean-energy benchmarks, language access, and whether CPP is a top administration priority. Councilman Polonzic said the previous rate increase produced few visible improvements and demanded an exact list of what a new rate increase would fund and when; he also questioned whether the administration's push for solar has cost the system and driven the rate increase. Councilwoman Hudson asked about vegetation management, FERC/PUCO jurisdiction, and outage causes; the Director said vegetation management is contracted, coordinated with the city forestry division, and is very important to reliability. Councilwoman Gray asked how residents would see improvements; the Director said they would see more efficient service, timely outage response, and proactive communications.

Cost of Service Rate Study – Phase Two (2027-2029)

  • CFO Catherine Troy presented the Phase Two rate study. CPP has about 74,000 customers, including roughly 66,000 residential customers; the city of Cleveland is its largest customer at about 20% of sales, and the next 30 largest customers make up about 24% of sales. Commodity costs have risen sharply, including a 141% increase in transformers from 2018 to 2024, a 51% increase in wire over six years, a 71% increase in wood poles over six years, and an 82% increase in bucket trucks over 12 years.
  • The revenue requirement is projected to be $90 million in 2027, $97 million in 2028, and $102 million in 2029. The proposed rates would raise about $6 million in 2027, $7 million in 2028, and $5 million in 2029, and would support a planned $30 million bond issuance in 2028. CPP's cash reserves remain below the 150-day target, and its debt-service coverage target is 1.5 times versus the 1.25 minimum.
  • The proposed residential rate design is an inclining block usage charge plus a fixed charge of $2 per month in 2027, $4 in 2028, and $5 in 2029. The power supply recovery charge and kilowatt-hour tax would not change under this ordinance. The CFO noted that the 2025 PUCO comparison at 750 kWh shows CPP below CEI and major Ohio cities.
  • Council members requested a simplified chart showing charges by usage level for a typical residential customer in 2026-2029, and a rough comparison with FirstEnergy's projected rates. Councilman Polonzic asked exactly what a $30 million bond would be spent on. Councilman Davis asked why the bond amount was not larger; CFO Troy said larger debt service could not be supported and customer impact must be managed. Councilwoman Gray asked for clarity that the state power supply recovery and supplier charges are separate from CPP's proposed delivery charges. The Chairman noted that if rates do not pass, CPP would continue cutting a lean 2027 budget while trying to maintain service.

Key Outcomes

  • The committee approved Ordinance 1172-2026 and Ordinance 1229-2026 without objection.
  • The committee did not vote on the proposed 2027-2029 rates. Chairman Casey said the rate legislation would be heard at the next utilities committee meeting, with a 30-day hold required before any new rates could take effect.
  • The Director and CFO were asked to return with: a simplified residential rate chart by usage tier, a rough FirstEnergy/competitive comparison, consumption data for Brown Stadium and Burke Airport, vegetation-management outage data, underground cable analysis related to the July 2026 outages, and a clear list of capital projects for the proposed bond issuance.
  • Public commenters urged restoration of the previous net-metering policy; no formal action was taken on that request at this meeting.

Meeting Transcript

Well, But I don't have the legislation. Today we have uh two pieces of legislation that we're gonna hear first, and then we have the uh presentations from the Department of Public Utilities, the overview of the plan, and the cost of service bringing study. Uh, director, if you want to come on up. We'll start with ordinance number eleven seventy-two twenty twenty-six by council members Casey and Griffin by departmental request and emergency ordinance authorizing the director of public utilities to amend contract number CT two zero zero four LS two zero zero four star zero two four to substitute the name of the leaser from City Rose LTD to Darley Holdings Group LLC or its designees and to extend the term to a seven-year term with one five-year option to renew exercisable by additional legislative authority. Director, thank you, Chairman. This is the East Service Center of Cleveland Public Power, one forty-one hundred Darley Avenue. The owner um uh the owner that we had a lease agreement with, um, transitioned, changed, uh well, he passed away, and then the somebody else bought it. So we have luckily with Commissioner De Janeiro and her group negotiated um to stay there with favorable terms. Uh, but we need the amendment for the name change, and then we are looking to extend it uh to a seven-year term with one five year option. Currently, there's five years left on our term. There's three years, so we're looking to extend the terms. Um, under the same uh, essentially the uh monetary obligation for Cleveland Public Power. Again, as council's aware, this is where on the Darley Avenue CPP uh houses their low tension linemen, all the underground crews storeroom managers and mechanics. So we're looking to continue that operation for Cleveland Public Power and their customers. Any addition to the um the rent that uh the money that they pay? Uh no, Mr. Chairman. The rent will remain the same for the full sub for for the additional five years. All right, Director, whose ward is the service center in. It's ward nine. Yes, Councilman Conwell. All right, did you have a conversation with Councilman Conwell regarding regarding this? Um, because I forgot that it changed from Councilman to Councilman Conwell. Uh, I certainly can have that if this is received at finance. I can do that. Uh, this week. Can you please do that? Well, I don't want to vote on a piece of legislation in somebody else's ward without without their knowledge of it. And I did notify Councilman Conwell, Mr. Chairman, and left the message for him this morning, but we'll follow up. All right. Any questions from the committee? Seeing none eleven seventy-two twenty twenty-six stands approved. Please sign up. Ordinance number 1229 2026 by Council Members Casey and Griffin by Department of Request an emergency ordinance to amend section one of the ordinance numbers 600-2026 passed July 15, 2026, relating to contracts with ST Engineering Telematic Wireless Limited for upgrades and modifications to manage the bright city lighting system. Director? Thank you, Chairman. We were just in front of this committee in July for the continuation of the relationship with the Bright City platform. This is an amendment to that ordinance.

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