Title
Consider a resolution authorizing the Mayor to delegate authorization to the City Manager to timely execute one or more electric power supply contracts with Retail Electric Provider(s) to obtain the best price in the energy market.
Body
In July 2025, the City entered into a no-cost agreement with Tradition Energy for energy consulting and procurement advisory services (Contract No. CM-2025-176), secured through the OMNIA Partners cooperative program. Tradition Energy is the nation’s largest independent energy procurement and sustainability solutions advisor.
The City of Round Rock operates within Texas’ deregulated electric market, which allows customers to select Retail Electric Providers while the local utility continues to deliver power. The Electric Reliability Council of Texas (ERCOT) manages the statewide electric grid and oversees wholesale market operations to balance supply and demand.
The City is currently under an active retail electricity agreement with Constellation that expires in July 2027 at a rate of 3.824 cents per kilowatt hour, a historically low rate over the past 20 years. Tradition Energy has advised that current ERCOT market conditions reflect elevated power prices, driven by demand growth that has outpaced new generation capacity. As a result, future electric supply rates beginning in July 2027 currently exceed 6.0 cents per kilowatt hour.
Given market unpredictability and the need to act quickly when favorable pricing becomes available, Tradition Energy is advising multi-year procurement strategies, including 60-month contract options, to secure the most competitive rates for the 2027-2032 period. This agenda item will delegate authority to the City Manager to timely execute one or more power supply agreements when market conditions are favorable as advised by Tradition Energy.
Staff recommends approval of the resolution.