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Broker Announces Creation Of Texas Power Pool

Pool Gathering Public Entities For Renewable Electricity Aggregation

January 7, 2019

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Copyright 2010-19 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

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Texas Energy Aggregation announced the formation of the Texas Power Pool, which Texas Energy Aggregation described as, "a new power purchasing option for Texas public entities to utilize aggregated renewable energy."

Texas Power Pool's services include competitive procurement of utility-scale renewables and on-site solar for state agencies, higher education, cities, independent school districts, water districts, and other public entities across Texas, including cooperative and municipal utility regions.

Texas Energy Aggregation has begun the process of collecting letters of interest from the largest state and other public entities, which it said already includes some of the largest state agencies, cities and schools. These non-binding endorsements of common goals will be used to release a request for proposal by the end of first quarter 2019 to lock in a firm price.

"Once we can guarantee a rate under 3 cents per kilowatt-hour, we anticipate additional participation that will further drive down the cost for all participants," said Mike Bendewald, Chief Operating Officer with Texas Energy Aggregation, who manages the Texas Power Pool, leading customer engagement and contract structuring.

Participants with existing energy contracts as far out as 2028 may qualify for additional rate discounts or upfront cash bonuses. This does not cancel or affect an entity's existing contract in any way, Texas Energy Aggregation said

Texas Energy Aggregation stated, "With projected rates below three cents per kilowatt-hour, competitively procured wholesale renewables are the lowest-cost purchasing option available in more than a decade. In sharp contrast, many retail energy contracts offer a '100% renewable' alternative at a higher cost by simply purchasing Renewable Energy Credits (RECs)."

The services are enabled by a Texas Comptroller's Statewide Procurement Division contract awarded to Texas Energy Aggregation. Interested public entities can learn more from the State Energy Conservation Office (SECO).

Texas Energy Aggregation said that the Texas Comptroller's Statewide Procurement Division is the central state organization for purchasing and, with the assistance of SECO, issued a request for proposals for electricity sourcing services that included renewable power purchase agreements. Through a competitive bidding process, the Comptroller's office selected the Waco-based Texas Energy Aggregation to offer electricity procurement services. SECO was later involved with Texas Energy Aggregation in naming these services the Texas Power Pool.

Texas Energy Aggregation stated that contracts from other purchasing programs serving public customers still demand complete confidentiality and prohibit users from divulging fees, contract terms, and rates, and even instruct customers on how to fend off Freedom of Information requests. Texas Energy Aggregation President TJ Ermoian asked, "If they offer such great rates, one would want to crow about their successes, right? Competition is good. These are often multi-year, multi-million-dollar contracts with no transparency. Texas taxpayers deserve to know if they are getting the best deal."

Texas Energy Aggregation is working in partnership with the Rocky Mountain Institute (RMI)

Dan Seif, former principal at the Rocky Mountain Institute, is also consulting for Texas Energy Aggregation

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