Public Power Pool tells Nueces County it saved $629,000 in 2023 and seeks flexibility for 2026 electricity procurement
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Summary
Public Power Pool manager David Quinn told the court that participation in the P3 bulk electricity purchasing program saved Nueces County an estimated $629,000 in 2023 (PUC methodology) and $3.6 million since joining; P3 recommended a procurement strategy with ceiling rates and flexible yearly purchases ahead of the county’s contract expiration.
David Quinn, program manager for Public Power Pool (P3), briefed the Commissioners Court on P3’s upcoming procurement and reported estimated savings for Nueces County from the cooperative electricity purchase program.
Quinn said P3’s in‑house calculation shows approximately $3.6 million in cumulative savings since the county joined the group; using the Texas Public Utilities Commission reporting method tied to House Bill filings, he said the county saved about $629,000 in 2023. "That is comparing your fixed rate with P3 to what the PUC's benchmark average price would be for Nueces County," he said.
Current contract and timing: Nueces County’s fixed-rate contract through P3 is 4.72¢ per kilowatt-hour and is scheduled to expire with the first meter reading of January 2026. Quinn said the group’s historical approach is frequently a three‑year fixed contract, but market signals and backwardation in forward curves suggest buying flexibility could capture additional savings if prices decline.
Proposed procurement approach: P3 recommended setting ceiling rates (listed in the presentation) and retaining flexibility to purchase contract years incrementally (for example, locking 2026 and 2027 volumes first and delaying additional years if the market continues to fall). Quinn showed a range of expected and ceiling rates; he noted that locking in at the proposed ceiling for 2026 would represent a roughly 20% increase over current costs, but he expressed confidence the final procured price would be closer to the lower target rates.
Commissioners asked about the mechanics: Quinn said P3 issues an RFP to all registered retail electric providers in the state and that each participating political subdivision receives a unique rate; he described P3 as an aggregator that leverages volume to reduce per‑account cost compared with an entity procuring alone. He added that the group currently manages about 3,500 accounts and roughly 2,000,000 MWh over three years.
No court action was required; commissioners heard the procurement timetable and asked staff to plan the county budget for possible price changes in 2026.
