KETR Local
12:27 am
Fri December 5, 2008

Long-term contract reached, thousands saved

Commerce – The City of Commerce has entered into a contract with the Cities Aggregation Power Project (CAPP), which is projected to provide annual energy savings to the City in the thousands.

The City will now secure even more predictability and cost savings through a long-term contract of 24 years, with 60% of those costs given at a fixed rate. Conservative estimates by CAPP consultants indicate a savings of more than $27,000 in 2009 for Commerce.

CAPP has recently negotiated a unique agreement with a leading power supplier to provide electricity to member cities at sharply reduced rates over the 24-year period. The group-purchase means that scores of Texas communities can be assured of dramatic savings on their municipal energy usage for more than two decades in the future, thereby benefiting taxpayers.

CAPP is a non-profit organization that pools Texas cities' electric power needs in order to negotiate lower, more stable prices through bulk purchasing. The organization has over 100 member cities.