Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Energy Contracts topic
No spam. Unsubscribe anytime.
Board votes to lock electricity supply contract for roughly 48 months
Summary
The city board approved a motion to lock an electricity supply term of about 48 months after a presentation showing TXU bid substantially lower than the incumbent; members raised timing and market‑risk concerns tied to future generation projects and wholesale price volatility.
After a staff presentation of the recent electricity RFP, the board voted to lock a new supply term of approximately 48 months. The presenter said TXU’s bid was “much lower than everybody else” across 12–60 month terms and showed an example 60‑month spend of about $52,000 on the packet chart. The presenter also reminded the board, “Your current contract ends 06/30/2027.”
Council members pressed on timing, noting future generation projects could change the market but would take years to affect local rates. One council member said, “Every 10th of an inch or every 10th of a cent that it goes up is $10,000 a year,” underscoring sensitivity to small price swings. The presenter responded that if prices fall shortly after a lock the city would receive the lower rate, but waiting risked higher prices. A motion to proceed with a roughly 48‑month term was moved, seconded and approved on a voice vote; the chair confirmed the motion carries and that the signatory authority was delegated.
