Aggregation Groups
Since 2001 ReSolved Energy Consulting (as RJC Energy Consulting) has served as technical consultant to the largest municipally based power aggregation group in Texas – Texas Cities for Affordable Power (“TCAP”) - which was created by the merger of the former Cities Aggregation Power Project (“CAPP”) & South Texas Aggregation Project (“STAP”) in 2011. This group is comprised of over 160 Texas cities and political subdivisions spanning the state of Texas and with significant loads in all four of ERCOT’s major load zones: North, Houston, South, and West. Peak load for TCAP members combined is approximately 250 MWs with an annual usage of over 1.3 billion kWhs.
ReSolved Energy Consulting’s (“REC’s”) duties encompass supply procurement, including issuance of RFPs and negotiation of agreements for both power supplies and retail services, providing technical assistance on electric issues, assisting individual members with electric problems, and providing new and innovative approaches for saving members money via innovative procurement and contracting and other approaches. REC developed and implemented one of the first arrangements in the Texas deregulated market where customers separately procure power and REP services from alternative providers.
Although the transfer from a regulated to deregulated market has been bumpy at times, TCAP members have enjoyed stable rates and energy savings throughout their existence. The initial years of competition in Texas brought a variety of issues including problems with switching accounts, incorrect and infrequent billings, double billings for some accounts, and problems with inadvertent account disconnects. While TCAP members were not immune from these market problems, REC working with TCAP took proactive steps to identify and correct these problems for their members, including:
- Developing reporting tools for members that allowed them to review not only what was billed for an account, but what was reported as metered load
- Developing innovative approaches to energy procurement that allows members to choose the best provider of customer services as well as the best provider of affordable energy (these often are not the same company)
- Providing an on-going on call service to assist members in resolving problems when necessary
These benefits have been instrumental in allowing TCAP to grow in membership every year while saving their members over $200,000,000 in energy costs since 2002.
As TCAP moves into the future they continue to anticipate and respond to member needs. When volatility in energy prices reached a peak in 2008, REC negotiated a five year fixed price contract on behalf of TCAP at a point in time when most REPs were only offering deals for two years or less. In 2011, REC negotiated an extension to this agreement that will allow TCAP members to take advantage of then available low energy prices for many years into the future. REC also proactively investigates options to further mitigate future price volatility by taking advantage of emerging market opportunities and provides technical analysis of the impacts of legislative initiatives such as carbon taxes and renewable energy mandates on future member pricing.
