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Public Power Pool outlines procurement options, warns of near-term higher electricity forward prices
Summary
David Quinn of the Texas Conference of Urban Counties' Public Power Pool briefed Smith County on a new procurement for electricity, presenting a dual strategy and projecting possible rate increases for 2026–27.
David Quinn, program manager for the Public Power Pool (P3) at the Texas Conference of Urban Counties, presented procurement options and rate projections to Smith County Commissioner—s Court on April 1.
Quinn said P3, a 501(c)(4) political subdivision corporation with 99 member entities, negotiates bulk electricity contracts to secure prices closer to wholesale levels. He told the court Smith County has saved "just over $1,200,000" since joining P3 in February 2019 using P3—s methodology, and that a House Bill 3693 report showed Smith County saved $555,000 in 2023 compared with a PUC benchmark.
Explaining a new procurement proposal, Quinn described a dual approach: (1) lock a fixed rate for the duration of a new contract and (2) pursue an incremental, year-by-year purchasing strategy that would try to capture market declines when available. He presented ceiling rates (the maximum P3 would allow) and expected rates (P3—s target) for 2026 onward and said the ceiling for 2026 was set higher to provide flexibility. Quinn said the P3 board vets providers, invites all registered retail electric providers to bid and seeks contracts that protect members— interests.
Quinn showed projected rates that, at the expected level, would represent an approximate 15.9% increase in 2026 compared with Smith County—s current cost, with smaller increases in 2027 and 2028 and possible reductions by 2029 under the model. He told the court the largest near-term driver of increased electricity demand and higher forward prices is large new loads, including data centers and AI-related facilities locating in ERCOT.
No formal procurement vote was required at the meeting; Quinn asked the court to review the proposal and indicate whether Smith County wants to remain with the P3 aggregation. He offered to return with updates and said P3—s aggregation fee is 99 cents per megawatt-hour.
