Texas city signs PPA with local power consulting firm

The US city of Arlington in Texas has signed a power purchase agreement with energy management and consulting firm Priority Power Management (PPM).

The agreement includes PPM providing the city with electricity for nine years as from January 2018 through to December 2026.

The deal also includes a fixed electricity price and is expected to save the city over $23.5 million in electricity savings over the term.

[quote] The city consumes over 72.6 million kilowatt-hours of electricity a year, across 796 electricity accounts.

In addition, the contract also includes $150,000 of rebates available to the City to partially offset investments in energy efficiency upgrades.

Mike Finley, chief financial officer for the city, said: “This new contract achieves our goals of securing significant year-over-year savings and having budget certainty for a long period of time.” [

John Bick, managing principal of PPM, added: “This contract was a great win for he City of Arlington.”

“We evaluated proposals from several qualified suppliers for various terms throughout the competitive bidding and negotiation process. Ultimately, we were able to negotiate and execute a contract that locks in all competitive retail electricity supply components at a very low price,” reiterated Bick. [California utility partners with local IPP on solar energy].

US power purchase agreements

In late June, US electricity cooperative the Kit Carson Electric also entered into a PPA with energy company Guzman Renewable Energy Partners (GREP).

Under the agreement, GREP will provide wholesale electricity sourced from renewable energy sources for use by the cooperative’s 30,000 members in the US state of New Mexico.

The agreement is an effort to enhance Kit Carson’s energy supply portfolio and use of renewable energy. The 10-year contract will begin as from the July 1st, 2016. [Los Angeles utility in PPA agreement with Fortistar].

The use of power sourced from renewable energy sources managed by GREP is expected to provide the cooperative’s customers with over US$50 million in bill savings over the ten-year period of the contract.

Commenting on the development, Jeffrey Heit, managing director of Guzman Energy said the agreement will provide “our partners, including Kit Carson’s ratepayers, with economical, reliable, and clean sources of energy.”

Luis Reyes, CEO of Kit Carson, added that the PPA “will directly benefit the residents and businesses of the Kit Carson territory as the cooperative takes a significant step in giving members greater flexibility at a lower cost.”


Image credit: nautilus.org

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Nicholas Nhede is an experienced energy sector writer based in Clarion Event's Cape Town office. He has been writing for Smart Energy International’s print and online media platforms since 2015, on topics including metering, smart grids, renewable energy, the Internet of Things, distributed energy resources and smart cities. Originally from Zimbabwe, Nicholas holds a diploma in Journalism and Communication Studies. Nicholas has a passion for how technology can be used to accelerate the energy transition and combat climate change.