Houston County Courier - Local News
Stories Added - November 2008
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Electricity contract approved by city
Houston County Courier - November 2008
By Daphne Hereford
Members of Crockett city Council approved a resolution authorizing the Cities Aggregation Power Project, Inc. (CAPP) to negotiate an electric supply agreement for the city beginning Jan. 1, 2009 and continuing until Dec. 31, 2013.
According to Mayor Wayne Mask, the city has been a part of CAPP since 2002.
City administrator Ron Duncan said that CAPP served about 150 municipalities and their buying power was significant.
Duncan told council they also had on the agenda for consideration another option from East Texas Council of Governments ETCOG), East Texas Energy Consortium Electricity Cooperative Pool (ETEC).
Duncan said that ETEC only dealt with about 30 entities of various types including cities, school districts and others.
"I believe price wise we do better with CAPP. They have been food to us. I have faith in the other organizations, but think CAPP will serve us better," Duncan said.
Councilman James Hall said he had reviewed the status of natural gas prices and commented, "I feel pretty positive that this is a good move."
Councilman Nathan Gardner asked if there was a relationship between CAPP and TXU. Duncan explained that CAPPS only dealt with entities while TXU served the private sector.
Council took no action on an ordinance that would bind the city to CAPP in a 24-year agreement for electricity.
Duncan explained that there were certain risks for the city if they chose to enter into the agreement.
Councilmen Darius Kitchen and Hall expressed their concerns about approving the long-term agreement.
Council also approved the second reading of an ordinance and agreement with CenterPoint Energy.