Title
Authorizing the City Manager to execute the Third Amendment to Retail Sales Agreement, an interlocal agreement for electric service, between the City of Pflugerville and the General Land Office.
Summary
The City currently obtains electricity through an Interlocal Agreement with the General Land Office (GLO) that ends in April 2020. This agreement, originally dated January 2014 - April 2017, was extended through April 2020 due to the ability to continue with favorable rates. A second amendment was completed to provide a timely payment discount to the City that was inadvertently omitted from the first amendment. While the price of electric service changes daily, preliminary pricing received from the GLO reflects a rate very similar to the City's current per kWh rate. Securing a rate at this low price point, will help keep our current electric costs manageable as we continue to increase our service needs.
The benefits of an interlocal agreement between the City and the GLO are that the City can take advantage of the GLO’s competitive electric rates and abstain from paying gross receipts taxes (GRT) and Public Utility Commission (PUC) assessment fees, which the City would have to pay with other retail providers. Although the Texas Legislature has enacted legislation that ends the GLO's electric program as of December 2023, the City has found this program beneficial and would like to continue the agreement for electric service with the GLO through the end of the program.
The third amendment agreement has been reviewed and approved as to form by the City Attorney. Per the GLO, the Attorney General has opined on several occasions that the GLO interlocal agreement is commercially sensitive and confidential and not subject to public disclosure pursuant to the Open Records Act.
Electric prices are volatile and rates need to be acted on quickly, sometimes within hours. This short time frame necessitates the ability for quick action, which can be accomplished ...
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