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"). The term was January 1, 2009, to December 31, 2013. The cost was $0.08065 per kWh.
On December 29, 2010, the City amended the 2008 ESA, which extended the contract term to June 30, 2016. Reliant Energy remained the provider, and the cost dropped to $0.05989 per kWh.
City staff initiated coordination with 5, an energy advisory firm, in the summer of 2013. The purpose was to secure expert advice on how to best manage the City’s electricity contracts beginning in 2016. 5 is a leader in the energy market; monitors industry trends and initiatives; recommends products, terms and prices; and facilitates a competitive bidding process to ensure client’s receive the best possible offer. The City neither has a contract with, nor is financially obligated to, 5 for its services. As an energy broker, its income is embedded in the energy provider’s price, regardless of which provider a client selects. The most recent update by 5 to the Killeen City Council was provided on July 28, 2015.
Based on 5’s recommendation, the City entered into a Retail Sales Interlocal Agreement on November 27, 2013, through the GLO. This contract covered 317 electric meters for a term of July 1, 2016 to June 30, 2020. The cost dropped to $0.05503 per kWh.
DISCUSSION/CONCLUSION
Since the most recent contract for electric service was signed, the City has added 16 additional electric meters. Rather than add the new meters to the current contract, the City will save money by e...
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