Texas City Selects Power Marketer For Energy Management
December 13,2019
The City of Georgetown, Texas approved an agreement with Shell Energy North America for Shell to provide energy management services.
A request for proposals was issued in February. Twelve proposals were submitted to provide these services for the City. In August, the City Council voted to proceed with contract negotiations with two finalists. "Shell was selected based on their overall capabilities, cost, and the specific energy portfolio needs of the City," the City said
"Shell’s services include developing and making recommendations regarding how Georgetown’s energy is traded in the Texas energy market. They will also assist in forecasting energy needs, energy costs, and addressing challenges related to transmitting energy around the state, all of which affect the City’s costs associated with purchasing power," the City said
In May, Schneider Engineering completed its assessment of the City’s practices related to purchasing and managing energy. The first recommendation was to secure new third-party energy management partners that more rapidly respond and react to changing market conditions and better ensure against market volatility.
Schneider had also recommended developing and implementing a comprehensive risk management policy that sets boundaries on risk tolerances, financial obligations, and guides decision-making at all levels of the electric utility. The City Council completed the first reading of a new energy risk management ordinance on Dec. 10, with a second reading scheduled for Jan. 14.
Finally, the assessment recommended studying alternative governance structures for the electric utility (e.g., a separate oversight board). "City Council has had several discussions regarding a new Georgetown Electric Board to aid the City Council in policy oversight and reviewing monthly risk management policy updates, along with receiving periodic risk management policy compliance reports from an independent third-party. The new board structure is expected to be implemented in 2020," the City said