• David Tewes •
• Originally published May 20, 2008 at 9:07 a.m., updated May 20, 2008 at 9:07 a.m.

Victoria County’s taxpayers might not be getting the best deal available when it comes to buying electricity to power county buildings.

The commissioners court voted Monday to begin the process of withdrawing from the Public Power Pool, a step that will allow the county to request bids from other power pools.

“We’re just looking at alternative energy sources and prices,” County Judge Don Pozzi said. “We don’t want the taxpayers to be paying more than they should be.”

Public Power Pool is a group of about 81 cities, counties, school districts and other governments that pool their buying power to purchase electricity at a discounted price.

Victoria County has been a member of the group since 2002, but the commissioners court is questioning the savings. “It’s very debatable,” said County Commissioner Kevin Janak, who has been researching the subject.

Public Power Pool claims it has saved the county 5 to 7 percent over the market rate, Janak said. But Pozzi and the commissioners are asking what the market rate is.

Donald Lee, executive director for the power pool, said the county has saved an average of 6 percent since becoming a member. He said the savings last year was about $81,000 compared to the market rate.

“This is a number built from market intelligence, as best as can be put together,” Lee said. “There is not a clean, clear, transparent index.”

The pool seeks competitive bids and selects the one with the lowest and best value at the time, Lee said.

“The only way you beat what we do is through market timing,” he said. “No one has figured out how to reliably time the market.”

The commissioner court action Monday gives the power pool notice that the county intends to withdraw from the group. If the county is unable to find a better price for power, the county can rejoin the group, Pozzi and Janak said.

Michelle Darilek is the county auditor for Jackson County, which belongs to the same pool. The Jackson County Commissioners Court will meet later this month to consider whether it wants to continue with Public Power Pool or investigate to see if better prices are available.

Public Power Pool has estimated Jackson would save $55,000 a year during the next three years by staying in the same pool, Darilek said.

“This is a pretty big pool, and when you have a big pool, you have more pull than when you have a smaller one, generally” she said. “The economies of scale are with this one.”

Rhonda Kokena is the treasurer for Calhoun County, which also belongs to Public Power Pool. The commissioner court there has discussed whether to continue as a member of the pool, she said.

“We have been approached by several consulting firms wanting to come in and view our contract and get us to switch over,” she said. “We didn’t see a reason to opt out.”

David Tewes is a reporter for the Advocate. Contact him at 361-580-6515 or dtewes@vicad.com, or comment on this story at www.VictoriaAdvocate.com.

• Print
• •
• Share
  • Share this item

    Send this to a friend

    Share on FaceBook

  • Grab the link

    Copy and paste the link:

  • Blog about it

    Blog about this page.

  • Close
• •
• Post a Comment
• •
• Favorite
• •
• Report error
  • Thank you for your submission.
    Error report or correction

    Contact name (optional) Contact phone/e-mail (optional)  

    
  • Close
• •