Title
Consider a memorandum/resolution authorizing the City Manager to review energy proposals from L5E LLC dba 5 and execute a contract with the provider offering the best value to the city.
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DATE: November 18, 2025
TO: Kent Cagle, City Manager
FROM: Judith Tangalin, Executive Director of Finance
SUBJECT: Authorize the City Manager to collaborate with L5E LLC dba 5, the City's energy advisor, to enter into a contract with the energy provider offering the best overall value to the City
BACKGROUND AND FINDINGS:
The City previously participated in the Texas General Land Office (GLO) Power Program before transitioning to independent energy procurement. Since that time, the City has engaged L5E LLC dba 5 ("5") as its energy advisor to monitor market conditions and assist in securing electricity contracts that provide the best overall value. Through this partnership, the City executed two contracts covering the service period from July 1, 2026, through December 31, 2032. Each contract includes approximately half of the City's meters, resulting in rates of $0.0575606 per kWh and $0.0614421 per kWh, respectively.
The Electric Reliability Council of Texas (ERCOT), which manages the flow of electric power to about 90 percent of the state's electric load, is forecasting that statewide electricity demand will nearly double over the next five years. This expected growth has already increased market prices and is anticipated to continue driving long-term cost escalation. Given current market volatility and future grid-capacity constraints, it is prudent for the City to proactively secure electricity pricing to protect the City's long-term budget stability.
This resolution authorizes the City Manager to work with L5E LLC dba 5 to evaluate market proposals and secure electricity rates for the period following December 31, 2032. The procurement will be facilitated through The Interlocal Purchasing System (TIPS), of which the City is a member.
THE ALTERNATIVES...
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