In Oncor’s service area, the City of Plano contracts with a Retail Electric Provider (REP) for the billing of electricity for the City’s accounts. The contract with the REP has a clear termination date, which allows the City the opportunity to request offers among qualified REPs for the best price per kilowatt hour (kWh).

Although municipalities are exempt from traditional bidding for expenditures on electricity, a request for offers was sent to three REPs: TXU Energy, Reliant Energy, and Gexa Energy. Representatives from all three companies provided presentations to the City’s Evaluation Team addressing billing and invoicing processes, online access to the City’s metering information, the process to add and delete meters, reporting expectations, and customer service availability to City staff. After the presentations and interviews, City staff investigated the online services provided by companies for ease of use, accessibility, billing practices, and reporting. Company references were also contacted to learn more about their experience and satisfaction with their REP.

After reviewing proposals and presentations of the REPs, TXU Energy was selected as the finalist for the upcoming contract beginning January 1, 2027. After approval by City Council, the contract will be executed by the City Manager or his designee, and authorizing the Director of Finance or her designee to evaluate and execute a Transaction Confirmation for Power at an acceptable rate not to exceed $0.0685 per kilowatt hour for a 36-month term or not to exceed $0.071 per kilowatt hour for a 60-month term beginning January 1, 2027. The City’s electric bills with TXU Energy will include additional charges. Under the City’s current contract with Reliant, electric bills included a fixed bundled rate along with taxes and fees. The new contract with TXU Electric will include the acceptable rate, taxes and fees, as well as pass-through charges from Oncor and ERCOT.  Once the agreement is executed by the Finance Director, the cost is expected to increase from the current contract.

This item has no financial impact.

Approval of this Resolution will support the City's Strategic Plan Critical Success Factor of Excellent, Innovative, and Accountable City Government.