The City of Odessa implemented an Energy Cost Adjustment (ECA) in 2019 as part of its electric utility billing structure. The ECA is a standard rate mechanism designed to reflect fluctuations in wholesale energy costs and was developed with the assistance of professional engineering guidance at the time of adoption.

In February 2026, a concern was raised regarding the calculation of the ECA. The City was already undergoing an electric rate study by an independent engineering firm. The engineer confirmed that the ordinance did not fully specify all factors used in the calculation formula, resulting in a portion of the ECA being miscalculated.

Upon confirmation of the issue, the City took immediate steps to address it. The Board of Aldermen amended the City Code to ensure the ECA calculation aligns with the corrected methodology, and updated billing began reflecting the revised calculation in March 2026.

The City has developed a structured, voluntary credit program to return the miscalculated portion of ECA charges to eligible customers. The program will apply to electric utility accounts active between May 2019 and January 2026. Customers will be required to opt in by submitting an application and verifying account information. Credits will be calculated individually based on each customer’s billing history and length of service during the affected period.

This process is designed to ensure accuracy, fairness, and administrative consistency while maintaining the financial integrity of the electric utility. Participation in the program is voluntary, and applicants will be asked to acknowledge terms related to acceptance of the credit.

The City remains committed to transparency throughout this process and will continue to provide updates as additional information becomes available.