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 discrepancy for a portion of the ECA.

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 February 2026.

Any customers with an active City electric utility account shall receive an ECA credit automatically. ECA credits shall be calculated based upon City electric utility records for the period during which the customer received electric service between May 2019 and January 2026.

Customers who are no longer active City electric utility customers but who may be eligible for an ECA refund shall submit an application on a form approved by the City. The intent of the application is to verify that the applicant was a customer of the City electric utility during a time period between May 2019 and January 2026 and to obtain current information so as to be able to issue an ECA refund to such customer. Applications for closed or inactive accounts must be submitted no later than March 31, 2027. Applications received after March 31, 2027, shall not be eligible for consideration. The applicant shall provide sufficient information to allow the City to verify the applicant’s identity, account ownership, and eligibility for the ECA refund. If the account holder is deceased or unable to apply due to incapacity, a successor, spouse, personal representative, heir, or other person with a demonstrated legal interest may apply upon providing documentation reasonably requested by the City. 

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