TITLE
Consider a memorandum/resolution approving an interlocal agreement with the Texas General Land Office for an electricity contract.
SUMMARY
AGENDA ITEM
Interlocal Agreement with the Texas General Land Office for an electricity contract.
ORIGINATING DEPARTMENT
Support Services
BACKGROUND INFORMATION
On September 5, 2008, the City entered into an Electric Sales Agreement (ESA) with Texas General land Office (GLO) with Reliant Energy as the provider. The term was January 1, 2009, to December 31, 2013. The cost per kWh was $0.08065. On December 29, 2010, the City amended the 2008 ESA which extended the contract term to June 30, 2016, and lowered the cost per kWh to $0.05989.
Since November 2013, Support Services and the City’s energy advisor, 5, have collaborated to secure long range, resource efficient, best value electricity contracts through the Texas GLO. On December 23, 2013, the City entered into a retail sales interlocal agreement with the Texas GLO with Cavallo Energy as the provider. It covered 317 electric meters, extended the term from July 1, 2016 to June 30, 2020, and lowered the cost per kWh to $0.05503. On February 4, 2016, the City entered into a retail sales interlocal agreement with the Texas GLO with Cavallo Energy remaining the provider. It covered 15 electric meters added since December 2013 for the same contract term of July 1, 2016, to June 30, 2020, and lowered the cost per kWh for only these meters to $0.04142.
DISCUSSION/CONCLUSION
This is a time-sensitive recommendation.
Based on the City’s credit rating and size, 5 now recommends the City leverage historically-low energy prices and extend the contract as far as allowed by Texas GLO and providers. Available options are 48- and 36-months. The price per kWh for a 48-month extension is $0.04776 per kWh. The price per kWh for a 36-month extension is $0.04642. The market change...
Click here for full text