Council authorizes manager to sign multi-year electricity contracts through Tradition Energy

The Rosenberg City Council approved a resolution delegating authority to the city manager to execute one or more retail electricity supply agreements through Tradition Energy and the Omnia Partners cooperative, with contract terms of up to 84 months and a not-to-exceed rate of 7¢ per kilowatt-hour.

Louis (staff presenter) explained that the city currently has a retail agreement with Constellation at 6.95¢/kWh that expires at the end of 2026 and that market conditions show elevated and variable prices. He said Tradition Energy recommended a multi-year procurement strategy and the delegation would allow timely contracting when favorable rates appear.

Michael Skelton, a Tradition Energy representative, told the council that delivery fees charged by CenterPoint are tariff-driven and not part of the city's retail supply contract. "Not a function of your retail electricity supply contract," Skelton said, explaining that delivery charges are based on tariff filings and peak-demand calculations. Councilors raised concerns about delivery fees, grid hardening since the 2021 winter storm and whether the proposed contracts would sufficiently protect the city from volatility. Staff recommended approval and council passed the resolution by a recorded 7–0 vote.