Texas Power Pool Customer Aggregation Surpasses 140 MW, Releases Renewable RFP

The Texas Power Pool announced that it has received sufficient Letters of Interest to surpass its initial 100 megawatt goal, which Texas Power Pool said, "plac[es] taxpayer-supported public entities within striking distance of a 3-cent per kWh target price to procure 100% Texas-produced renewable wholesale power."

The Texas Power Pool was developed by Texas Energy Aggregation to serve various public entities in Texas (see background here)

"At least 16 entities have submitted non-binding Letters of Interest, including several of the largest cities, school districts, universities, medical centers, and state agencies in Texas. Interested participants will receive bids from renewable generators, but are not required to accept any offers," Texas Power Pool said

"The Texas Comptroller's Statewide Procurement Division released an RFP, with the assistance of the State Energy Conservation Office (SECO), selecting the Waco-based Texas Energy Aggregation (TEA) to help public entities source power, including pooled access to longer-term renewable power purchase agreements. TEA released the RFP for the wholesale renewable portion of the pool on February 15. Texas Power Pool is the first new Statewide purchasing option available to public entities to be built around an aggregated wholesale renewable energy buy," Texas Power Pool said

"Wind and solar power are now far cheaper than grid power, but hitting a 3 cent per kWh target takes a large-scale buy, with credit-worthy off-takers, on contracts for 12-plus years," stated TEA President, TJ Ermoian.

Mike Bendewald, COO for Texas Energy Aggregation, says "An unusual benefit of this contract is it can immediately provide sustainability benefits and begins delivering financial benefits on the customer's next retail power contract, even if those contracts extend years into the future. We anticipate that soon, more public customers nationally will demand similarly de-risked renewable purchase agreements."

Responses to the RFP for wholesale renewable power are due by late April. TEA anticipates more Letters of Interest before April. As milestones are achieved for additional megawatts, pricing will be further discounted for all members, Texas Power Pool said