Utility Executive Warns of Risks in Long-Term Renewable Power Purchase Agreements

The Denton Sustainability Framework Advisory Committee convened on August 22, 2025, to discuss critical issues surrounding energy generation and long-term contracts in the context of renewable energy. A significant focus of the meeting was the challenges posed by the current energy generation landscape, particularly the risks associated with long-term Power Purchase Agreements (PPAs).

Committee members expressed concerns about the reliability of energy loads, noting that the existing generation capacity may not be sufficient to meet future demands. One member highlighted the potential risks of entering into 15 to 20-year PPAs when large energy loads could disappear unexpectedly. This situation could leave the city vulnerable, similar to past experiences faced by other municipalities.

The discussion also touched on the influx of speculative developers in the energy market. These developers often propose large interconnections to the energy system, promising substantial generation capacity. However, committee members cautioned against committing to long-term contracts based on speculative projects, as this could impose significant financial risks on ratepayers.

In conclusion, the committee underscored the importance of carefully evaluating energy loads and the implications of long-term contracts in the evolving renewable energy landscape. The discussions highlighted the need for a strategic approach to ensure the sustainability and reliability of Denton's energy future.