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TCAP tells Saginaw leaders aggregation and strategic purchasing can lower costs
Summary
Margaret Summery of the Texas Coalition for Affordable Power told Saginaw councilors that TCAP's aggregation model (166 members) and strategic one‑year purchasing approach can reduce volatility and protect cities from misleading fixed‑price contracts; she also reviewed market shocks and state policy issues affecting local rates.
Margaret Summery, executive director of the Texas Coalition for Affordable Power, briefed Saginaw's council on Nov. 24 about how municipal aggregation and what TCAP calls "strategic purchasing" can reduce price volatility for cities.
Summery said TCAP, a nonprofit aggregation of 166 members, combines members' load profiles so wholesale suppliers see a flatter demand curve and the group can buy more favorable contracts. "We are nonprofit ... we are looking to save you money," she told councilors, explaining TCAP buys a large volume of power and maintains a bifurcated contracting structure to separate billing (retail provider) and wholesale energy purchases.
She argued one‑year contracts purchased two years in advance keep municipalities flexible and reduce exposure to long‑term price adders that competitors sometimes include. Summery explained how market events — including winter storm Uri and international disruptions — contributed to recent volatility; she raised ERCOT ancillary charges and said some emergency market spending has been passed through to consumers.
Councilors asked about ERCOT oversight, the Railroad Commission and the prospect of connecting Texas to neighboring grids; Summery said transmission, FERC jurisdiction and export‑pressure on cheap West Texas wind/solar factor into decisions about interconnection.
Councilors did not vote on TCAP matters but requested follow‑up materials and a possible workshop to explore recycling and other operational topics tied to utility management.
