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Crockett council locks multi‑year electricity supply after broker presentation
Summary
Council approved a multi‑year electricity supply agreement to lock rates as staff warned market volatility and data-center demand could raise costs; the motion to lock a 60‑month supply with InGen carried. Current supply rate is about 3.3¢/kWh and staff projected a roughly 25% year‑over‑year rise without action.
The Crockett City Council voted Aug. 3 to lock a multi‑year electricity supply agreement after staff told the council market prices have dipped but are expected to rise. Staff said the city’s current supply rate is roughly 3.3¢ per kilowatt-hour and urged a longer-term contract to reduce exposure.
"Our energy will be increasing by about 25% in total cost over the year over year, because our energy purchasing is going to double," the staff member said during the presentation. Council debated contract length and provider options after staff said the city’s current contract with TXU expires in June 2027 and that distribution services would continue through Encore.
A council member moved to lock a 60‑month supply agreement with InGen at a quoted 0.06566 rate; another council member seconded the motion and the council voted to carry it. Staff told members the energy broker had highlighted shorter terms typically yield lower rates but that locking a longer term reduces the risk of a spike driven by growing grid demand, including large data centers.
The staff presentation said the city purchases just over 2,000,000 kilowatt-hours a year across all facilities and street lights and that, in a sample of market quotes, a 12‑month offer included a rate near 5.8¢/kWh while other providers were lowest at different term lengths. Staff also said the city will continue to use Encore for distribution and that broker relationships are paid by providers, not the city.
Council did not record a roll‑call vote by name in the public transcript; the mayor announced the motion carried. The contract will take effect when staff completes the formal agreement and notifies council of the final terms.
