Item 4D AudioSOUTHLAKE
Honorable Mayor and members of the City Council, Item 4D on the agenda is to
approve a two year contract extension with TXU Energy for a fixed rate agreement
to provide the City with electricity
Requested Action
Approve a two year contract
extension with TXU Energy for a
fixed rate agreement to provide the
City with electricity.
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Staff recommends approval of a two year contract extension with TXU Energy for a
fixed rate agreement to provide the City with electricity.
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Current Agreement
• Five year agreement approved in
November 2007
• Fourth year of 5 -year agreement
• Expires November 2012
• Current rate = $.0805676/kwh
In 2007 the City Council approved a 5 year agreement to purchase electricity from
TXU Energy at a fixed rate of $.0805676 per kilowatt hour. The City is near the end
of the fourth year of that agreement, which expires on November 20, 2012.
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Extension Agreement
• Renegotiate 5 year rate
• Extend agreement by two years
• Current rate = $.O6848/kwh
• Includes purchase of 10% renewable
energy
• Participation in TXU energy efficiency
incentive program
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Staff has worked with TXU to renegotiate the rate for the last year of our current
agreement and at the same time extend the agreement by two more years. The
new rate would be $.06848 per kilowatt hour starting on October 1, 2011 and ending
on November 21, 2014.
City Council should also be aware that this agreement provides for the purchase of
10% power from renewable energy sources, as well as participation in TXU's
Brighten Greenback program — which provides us an opportunity to receive
incentive dollars for energy efficiency projects.
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Financial Considerations
• Fifth year cost savings = $97
Two year extension cost avoidance
= $195,000
By renegotiating the last year of the current agreement the City will realize a
savings of $97,800, which will also be a cost avoidance of $195,000 for the
extended two year term.
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The City of Southlake provides municipal services that support
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the highest quality of
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life for our residents and businesses. We do this by delivering outstanding
unrivaled quality in everything that we do.
value and
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highest convenience and unique spaces tier businesses to drive
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safety and region personal interests sustainable economic
partnerships and
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F2 Invest to provide and F3 Achieve fiscal
management maintain high quality wellness
F4 Establish and
maintain effectiv
principles and budget public assets standards
internal controls
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B2: Collaborate with select partners to implement service solutions.
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SOUTHLAKE
In summary staff has had a positive experience working with TXU the last four years
and we view this extension and new rate as very beneficial for the City of Southlake.
Please contact me at 817- 748 -8005 with any questions you may have. Staff
recommends approval of this new rate and term extension.
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