To: Mark R. Hafner, City Manager
From: Sarah Hensley, Administrative Services Manager
Subject:
Title
Consider a resolution approving a professional services agreement with the Texas Coalition for Affordable Power (TCAP) and Gexa Energy’s commercial electric service agreement for power to be provided on and after January 1, 2023; and authorizing the City Manager to execute all documents relating thereto on behalf of the City of Keller, Texas.
Background:
TCAP’s main function is to aggregate member cities’ power loads to procure electricity at a savings. The City of Keller joined TCAP in 2012 and the organization currently has about 160 member cities and political subdivisions across Texas. Keller’s current, fixed-rate agreement with Gexa Energy was negotiated by TCAP in 2017 and will expire at the end of calendar year 2022. This agreement only applies to city facilities and assets served by Oncor (Oncor is the Transmission and Distribution Utility (TDU) and Gexa is the Retail Electric Provider, or REP). For Fiscal Years 2017-18 and 2018-19 the city’s electricity expenses were split roughly 50/50 between Gexa and Tri-County. The new proposal will involve procuring a portion of the annual power supply two years forward year-to year utilizing recurring RFPs; however, cities will continue to have the option to enter into a traditional fixed price/fixed term contract if desired.
Only the facilities and assets served by Oncor will be affected.
Financial Impact:
In FY 2018-19 electric consumption for facilities/assets served by Oncor was 6,495,149 kWh at a cost of $575,190. TCAP estimates that had the proposed Strategic Hedging Program been in place at the time, savings would have been approximately $20,416.
Total annual city expenditures on electricity for all meters (both Oncor and Tri-County) for FY 2018-19 were $1,112,981.
Citizen Input/Board Review:
N/A
Legal Review:
The City Attorney has reviewed and approved the proposed resolution and agreements.
Alternatives:
City Council has the following alternatives:
- Approve as submitted
- Approve with changes
- Denial