Texas Coalition for Affordable Power: Member Cities Receive Summer Dividends
29 July 2013 - 9:00PM
Business Wire
Nearly $800,000 in electricity rebate checks are being
distributed this month to scores of cities and other political
subdivisions — an unexpected summertime boon courtesy of the Texas
Coalition for Affordable Power.
More than 85 percent of TCAP’s 169 member cities and political
subdivisions will receive the checks. The disbursements varied from
city to city, depending upon electric usage and other factors.
“This is yet another benefit of membership,” said Dr. Randy
Moravec, TCAP executive director. “Unlike for-profit electric
retailers, TCAP returns surplus funds back to members. TCAP’s
beneficial electricity contracts also cushion cities against
punishing electric market volatility that can wreak havoc on city
budgets.”
TCAP is a non-profit coalition of cities that have joined
together to purchase power in bulk for their own governmental use.
Through the power of its numbers, TCAP negotiates
competitively-priced energy contracts that also include important
member protections. City officials oversee the non-profit
coalition.
The reimbursements announced this week are not the first from
TCAP — since 2010, the coalition has issued more than $5.3 million
in refund checks. TCAP members around the Houston area, in South
Texas and around the Fort Worth-Dallas Metroplex were awarded the
most recent disbursements. The checks varied in size from a few
hundred dollars to tens of thousands of dollars.
The City of Arlington has received more than $115,000 in refunds
in 2013 alone and more than $350,000 since 2011. The city has used
much of the money to retrofit municipal buildings with energy
efficient upgrades, says TCAP Board President Jay Doegey, who also
serves as Arlington’s City Attorney.
Corpus Christi has received nearly $650,000 in refunds since
2011. Smaller communities have received smaller checks, such as the
more than $10,000 disbursed to the City of Dickinson since 2011,
and the more than $72,000 distributed to the City of North Richland
Hills since 2011.
“Receiving an unexpected rebate is one of the great benefits of
TCAP membership,” said Julie Johnston, City Administrator for the
City of Dickinson. “Extra cash as we get into the final months of
the fiscal year is always welcome, especially for cities with
budgets to balance. Every little bit helps.”
TCAP, thanks to the work of its expert consultants, secured
money for the rebates because charges for technical services
procured by the state’s grid operator were less than anticipated.
The coalition holds back a certain amount to meet
contractually-required reserves, and then refunds the rest back to
members. This is in contrast to for-profit retail electric
providers, who often retain this excess margin.
In addition, many members received refunds in 2011 when TCAP was
formed through the merger of its two predecessor coalitions.
Many of the cities receiving refunds are located around Houston,
Dallas and Fort Worth. TCAP member cities in West Texas did not
receive refunds this year because of certain power transmission and
distribution constraints relating to the architecture or the power
grid. However, TCAP member cities in West Texas typically enjoy
lower rates among TCAP members.
TCAP also provides members a number of other important services,
including access to professional energy consultants and advocacy
before the Texas Legislature and state regulators. Because high
energy costs can impact municipal budgets and the ability to fund
essential services, TCAP, as part of its mission, actively promotes
affordable energy policies. High energy prices also place a burden
on local businesses and home consumers.
For more information about TCAP, or to learn how your city can
become a member, go to tcaptx.com.