Board authorizes superintendent to contract with TXU Energy for district electricity
Get AI-powered insights, summaries, and transcripts
Sign Up Free
Summary
After a staff recommendation, trustees authorized the superintendent to execute an electricity contract with TXU Energy for a term capped at six years; the board discussed market volatility and preferred shorter terms.
The Magnolia Independent School District board voted to authorize the superintendent or designee to execute an electricity supply contract with TXU Energy, with the agenda language capping the term at six years.
District staff said TXU Energy had the lowest price in a recent request for proposals and recommended granting the superintendent authority to sign when market conditions are favorable. The presenter noted current market prices are roughly 50% higher than rates secured in previous multi-year contracts and said staff plans to favor a three-year term when timing is right.
“TXU Energy came in the lowest,” said Mr. Morris, a district procurement staff member, in the presentation describing the RFP process and historical pricing. Staff showed the district has purchased electricity under multi-year contracts since 2009 and that past long-term contracts produced lower per-kilowatt costs during favorable market periods.
Trustees questioned contract length, exit options and opportunities to pair procurement with on-site generation. Trustees and staff agreed a shorter practical term would likely be selected when staff signs the contract.
Motion to authorize execution of a contract with TXU Energy for up to a six-year term, with superintendent authority to finalize terms, was made by Jay Michaels, seconded by Stacy Norris; the motion passed.