Title
A resolution authorizing the City Manager to finalize and execute an agreement for the purchase of electric energy from a retail energy provider at the best value for the City of Mesquite, Texas, and to present the agreement before the City Council for ratification as soon as possible after execution.
Body
City Council approved a Comprehensive Energy Consulting and Management Services contract with Tradition Energy through U.S. Communities Government Purchasing Alliance on April 16, 2018. Tradition Energy's role as an energy consultant is to advise the City on the energy market, recommend changes to the City's energy contract, handle bids and negotiations for new energy contracts, qualify suppliers of energy for use by the City and help manage the City's electric accounts.
The City's current energy provider is Gexa Energy with a contract that expires in December 2021. Tradition Energy approached City staff in September 2018 with an option to maintain very low electric rates for the City's contract period beginning in January of 2022 in the midst of current fluctuations in the energy market. The City's current rate per kilowatt hour for electricity is 0.03675. Tradition Energy has proposed securing an electricity contract as part of a solar aggregation that would secure low electric rates for the City through December 2029. The other entities committing to the solar aggregation group include the City of Pearland, the City of El Campo and the Port of Galveston. Pricing for the electricity will be solicited in late November or early December.
Energy rates fluctuate on a daily basis and must be locked in at the time the rates are low. Usually the desired rate must be secured within the business hours of the day quoted. This turnaround time makes it impossible to get City Council approval at the time of negotiations. Tradition Energy works with City staff to secure the desired rate and the energy agreement is ratified by City Council as soon as possible ther...
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