Comptroller of Public Accounts
Statewide Procurement Division
Electricity Sourcing Services
Electricity Sourcing Services
The State Comptroller’ Office Statewide Procurement Division, with the assistance of the State Energy Conservation Office (SECO), has awarded the contract for Electricity Sourcing Services to Texas Energy Aggregation (TEA). This contract replaces contract # CCG-EMS-2011-001 awarded Sept. 7, 2011 by the Council on Competitive Government for Electricity Procurement Services as part of the Strategic Sourcing Program.
This overview was prepared at the request of state agencies to outline the scope of services and benefits available to your agency through the Electricity Sourcing Services contract. The links below provide information that is more detailed.
This contract eliminates the need for agencies to run their own RFP and addresses new opportunities, which have become available since the previous contract. This contract can be used to reduce electricity expenditures while providing increased budget certainty for longer terms beyond the State’s two year budget cycle. It allows agencies to focus upon desired outcomes, rather than dealing with the complexities of the process to control energy expenses more effectively.
SERVICES OUTLINED IN THE RFP AND TEA'S RESPONSE
• Assistance with the RFP process and awarding of contracts for electricity supply for meters in deregulated areas of the state
• In regulated and deregulated areas of the state:
- Procurement of renewable energy power purchase agreements (PPAs) for on-site solar behind-the-meter to reduce delivery charges with no cost of construction
- Procurement of off-site solar and wind PPAs to fix a portion of your load for longer terms of 10-30 years
- Demand response contracts to create new revenue for locations that agree to be on call to dispatch backup generation and/or curtail load during emergency power shortages in the grid
NEW POTENTIAL BENEFITS
- Aggregated purchasing power with other large energy users in the state
- Purchase electricity from existing on or off-site wind or solar facilities
- Fix electricity costs for 10- to 30-year terms function as a hedge against inflation, reduce risk of price volatility and increase budget certainty
- Participate in demand response contracts to create a revenue stream that can be used to finance backup generation, energy storage or efficiency upgrades
- Develop solutions that satisfy both budgetary and environmental concerns
- Analyze opportunities at no cost or obligation
Electricity Sourcing Service Fees. These fees are embedded into the monthly electric bill and paid out monthly to the vendor over the first year of the electricity contract, or the agency may elect to pay the vendor directly. All fees paid to the vendor are included in energy prices, budgets and savings quoted by Texas Energy Aggregation.
Power Purchase Agreements & Demand Response Details
The optional PPA and demand response parts of the contract are comprised of CPA’s questions and TEA’s responses. Links may be found on the TXSmartBuy portal under Electricity Sourcing Services, by clicking Power Purchase Agreements and Demand Response Contracts.
RFP SCOPE OF SERVICES
(from RFP 304T-17-961M2 section A.4)
An Electricity Sourcing Services Contractor under this RFP will assist customers with a new electricity procurement or modification of an existing electricity contract. When requested by a customer, an awarded Contractor(s) can negotiate a new contract or modification of an existing electricity contract with Retail Electric Providers (REPs).
For new electricity procurements, the contractor will assist the customer in the development of a solicitation in accordance with customer’s procurement policies. The contractor must ensure procurement is public and competitive. Prior to issuance, the customer will review the solicitation to be sure all information in the solicitation is accurate and all required state terms and conditions are included.
After the solicitation is issued, the contractor and customer will review and evaluate the (REPs) responses and negotiate contract terms acceptable to both the customer and identified REPs. For standard retail electricity contracts, the contractor will conduct and be present at bidding or reverse auction events. For demand response and PPAs, the contractor will help the customer evaluate, negotiate and execute the contracts.