The five-member City Council of Sherman, Texas – serving a population of about 40,000 located 65 miles northeast of Dallas – voted to adopt Resolution No. 6056 on February 1, authorizing the Texas Coalition for Affordable Power (TCAP) to “lock in very favorable electrical rates [for] … Sherman’s consumption during the five-year period from January 1, 2018 through December 31, 2022.”
TCAP is an alliance of about 170 Lone Star State political subdivisions and cities that purchase electricity together for governmental use. The coalition represents an expanding, united front when contracting for energy, bringing the clout (1.4 billion kWh of annual consumption) of all its members to bear during negotiations for power.
Sherman is a member of TCAP and this resolution formally gives the coalition the authority to negotiate for a five-year contract for power at a projected significant cost savings through NextEra Energy, which has retail electricity sales offices in Houston.
“This agreement is similar to the one we signed five years ago with the Texas Coalition for Affordable Power,” Director of Finance Mary Lawrence told the Sherman City Herald Democrat.
Lawrence said that the contract differed this time around because there were options for fixed or variable rates. Based on her advice, the council went with the fixed rate option, something she said most other TCAP members also are doing.
“This contract will lock in probably one of the lowest rates since the retail electric market was deregulated in 2002,” she said. “So we will see significant savings.”
She estimated that the new rates would save Sherman about 25 percent compared to its previous rates – equating to hundreds of thousands of dollars.