SUBJECT:
Action regarding Resolution No. 2020-19, Adopting TCAP's Professional Services Agreement and Gexa Energy's Commercial Electric Service Agreement for Power to be Provided on and After January 1, 2023
BACKGROUND/DISCUSSION:
The City is a member of the Texas Coalition for Affordable Power. Member cities purchase our electricity as a group in order to obtain better pricing. TCAP has designed a Strategic Hedging Program where instead of buying electricity through a fixed price longer term contract, SHP will procure one twelfth of the annual supply each month, two years forward year-to-year. This provides the lowest market pricing to reduce carrying charges and risk premiums that longer term contracts must charge. Pricing will never be out of the market
FINANCIAL IMPACT:
We anticipate savings on future electricity purchases.
RECOMMENDATION:
Staff recommends approval of Resolution 2020-19 |