TITLE
Consider a memorandum/resolution amending an Interlocal Agreement with the Texas General Land Office for electricity services.
SUMMARY
DATE: November 13, 2018
TO: Ronald L. Olson, City Manager
FROM: Leslie Hinkle, Executive Director of Community Development
SUBJECT: Amending an Interlocal Agreement with Texas General Land Office for Electricity Services
BACKGROUND AND FINDINGS:
Since November 2013, the City has collaborated with an energy advisor and our supplier to evaluate and secure long range, resource efficient, best value electricity contracts through the Texas General Land Office (GLO).
On December 23, 2013, the City entered into a retail sales interlocal agreement with GLO with Cavallo Energy as the provider. It covered 317 electric meters and extended the GLO contract term from July 1, 2016 to June 30, 2020, and lowered the cost per kWh to $.05503.
On February 4, 2016, the City entered into an agreement with GLO with Cavallo Energy remaining the provider. It covered 15 electric meters added since December 2013 for the same contract term, July 1, 2016 to June 30, 2020, at a lower cost per kWh for only these meters at $0.04142. On March 9, 2016, the City amended the 2013 Interlocal Agreement with GLO and Cavallo Energy provider. The extension covered all 322 sites for the term July 1, 2020 to June 30, 2023, and lowered the cost per kWh to $.04637/kWh.
The 36-month agreement entered into on March 9, 2016 provided best value for the City, as longer-terms available at that time to the City provided less value. The continued development of natural gas supplies, a predominant fuel for electricity generation, and the proliferation of renewable resources across Texas has created an opportunity for the City to secure additional term electricity supply at lower rates, extending our track record of best value savings and budget certainty for this operating cost
THE ALTERNATIVES CONSIDERED:
This is a time-sensitive matter. The ma...
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