To: Mark R. Hafner, City Manager
From: Sarah Hensley, Administrative Services Manager
Subject:
Title
Receive and discuss a presentation relating to the new Strategic Hedging Program from the Texas Coalition for Affordable Power (TCAP).
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.
The TCAP executive director will give a presentation and answer questions at Tuesday’s meeting. Staff will be seeking direction on bringing forward a new professional services agreement with TCAP for consideration no later than the second meeting in September.