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FELPS to decide wholesale power contract by October
Kyle Dicke, assistant general manager of the Floresville Electric Light & Power System, addresses the board of trustees during its June 27 meeting.
Wilson County NewsJuly 3, 2012 3,406 views 2 comments
FLORESVILLE -- Negotiations continue between the Floresville Electric Light & Power System (FELPS) and three potential providers of wholesale electricity, said Kyle Dicke, FELPS’ assistant general manager, during the June 27 board of trustees meeting.
Dicke said the board will have to decide by October whether to renew its longstanding agreement with San Antonio-based CPS Energy, or if FELPS will obtain electricity from Bryan Texas Utilities or Garland Power & Light. FELPS does not have it own electricity-generating capacity, which is why it has purchased power from CPS since 1942. The current contract expires in 2015.
FELPS continues to gather data -- such as the electrical system’s peak demand and load forecast for the next decade -- which the three companies will be using to refine their bids, Dicke said.
David McMillan, FELPS’ general manager, said this has presented a challenge because the utility continues to see unprecedented growth related to the Eagle Ford shale oil and natural gas boom.
“Peak demand is 85 to 90 megawatts,” Dicke said. “Some companies said they would serve us up to 105 megawatts.”
If FELPS were to surpass that figure, the utility would have to make emergency power purchases on the spot market, which Dicke said would be quite costly.
Also related to FELPS’ future, the board approved a contract with Dallas-based Waters Consulting Group Inc., which will cost approximately $35,000. Dicke said Waters will aid FELPS in its classification and compensation study, in which the utility will develop job descriptions for its approximately 75 employees. The process also will include pay-scale adjustments, where necessary.
In other action, the board accepted the May 2012 financial report from Marcy Jacobs, manager of financial services. Jacobs said FELPS’ customer count of 14,275 is 2.25 percent higher than it was in 2011. Both the utility’s purchase and sale of kilowatt hours of electricity were down, attributable to milder weather during that month, which resulted in just $2,298,342 being billed for the month. This was 4 percent lower than the same point last year.
FELPS reported a net loss of $211,010 for the month of May, but a net income of $716,818 year to date.
Also related to kilowatt- hours, McMillan reported to the board that the purchased-power adjustment on bills mailed June 25 reflects a charge of $3.12 per 1,000 kilowatt-hours.
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