Local government and political subdivisions join together to act as one, in a process called aggregation, to negotiate favorable rates and contracts usually reserved for large industrial customers. The Texas Public Utility Commission reports call these aggregations the “big winners” in electric deregulation. Aggregation gives a group of customers the increased size and clout needed to effectively negotiate with retail electric providers. Furthermore, members of an aggregation share the cost of consultants, gaining access to expertise that would be costly to obtain on their own.
Public Power Pool has grown to be the largest aggregation in Texas, with the lowest aggregation fee. P3 purchases power for 78 political subdivisions and hands over 4.700 accounts that spent a significant amount more on electricity before deregulation. By working together since 2002, P3 members have saved $105 million against market rates.
What is Public Power Pool?
Public Power Pool is a non-profit political subdivision corporation, created by local governments in Texas, designed to save taxpayer money by aggregating power usage to procure the best power contracts at the lowest cost.
What does Public Power Pool do?
In addition to negotiating excellent rates on your electricity contracts, Public Power Pool offers excellent customer service and is a liaison between members and the provider. This includes handling your day-to-day requests such as adds and deletes, providing members with useful forward budgets, semi-annual account audits to ensure billing accuracy and customized energy analyses as requested be individual members.
Who is eligible to join?
Membership in Public Power Pool (P3) is open to all public schools, local governments and political subdivisions in Texas that are located in deregulated areas of the Texas grid, known as the Electric Reliability Council of Texas (ERCOT). Click here to check eligibility by zip code.
How does an entity join Public Power Pool?
1. Letter of Authorization
To join this innovative electric procurement project, a Letter of Authorization and a list of meters to be enrolled is required to allow P3 to collect usage history from data from relevant Transmission Distribution System Providers.
2. Minute Order
Once membership in Public Power Pool is requested, a local government must adopt a Minute Order/Resolution approving both P3’s Articles of Incorporation and the Bylaws. It also designates a representative who will serve as the primary point of contact for Public Power Pool. Finally, it authorizes payment of one-time membership fees based on the number of meters to be enrolled.
Research shows that counties that go it alone finish up paying much more for electricity than P3 members. One north Texas County that signed a contract directly with a retailer at the same time as P3 members secured a rate of 4.77 cents/kWh finished up 5.6 cents/kwh, costing their taxpayers an additional $33,922 per year. Another neighboring county wound up paying 5.5 cents/kWh, costing their taxpayers $17,743 more than if they’d procured through our group. As a budget defender, I urge you to consider the bulk purchasing discounts that come from working with 37 other Texas counties in P3.Glen Whitley
Had P3 members procured power on their own instead of through the group, they would be paying 5.1 cents/kWh instead of the P3 rate of 4.7 cents. That translates into $2,150,558 of group savings each year for P3 members. Other political subdivisions in and around Dallas County are paying significantly more under contracts negotiated at the same time as P3’s new contract. P3 membership offers unique opportunities and economies of scale for counties looking to save taxpayer dollars; I urge you to call P3 to discuss the benefits of joining.”Clay Jenkins
Public Power Pool’s third-party energy experts provide the most sophisticated quantitative analysis and modeling in the business. All decisions are rationalized and supported. Public Power Pool does not rely upon suppliers for analysis, modeling, T&D rates, or anything except their proposed energy rates and contract terms.
Competitive Procurement Process
Public Power Pool joins entities together into an aggregated load and runs a competitive process all the way through final pricing. This is true aggregation, not just joint purchasing. Public Power Pool identifies value inherent in the diversity and volume of load among members, and returns that value to members in the form of lower electric rates.
Public Power Pool develops a detailed procurement strategy and plan that is approved by the member Technical Committee and Board. Before the plan is executed, members know what to expect in the way of transmission and distribution (T&D) rates, target savings, threshold trigger savings, and expected savings.
Professional, High-Quality Service
Public Power Pool staff will work with members to monitor their invoices and their energy usage, as well as keeping them informed about current events in the Texas electric market.
No Cross Subsidization of Members
Public Power Pool has a unique methodology where every account gets a rate specific to its load profile. Members are assured that they do not subsidize other members in the group.
Public Power Pool’s contract complies with the minimum renewal/green portfolio standard and strives to provide green power to members by allowing them to customize their energy portfolios to reflect their preference for renewable energy.