New county power contract could save money
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In other businessThe commissioners court also approved giving $720 to the Inez Volunteer Fire Department.
A letter from Fire Chief Rusty Knezek states the money will be used to buy six flashlights for added safety for traffic crash calls.
Victoria County taxpayers could save as much as $200,000 through a contract that locks in charges for electricity used by county government.
The two-year deal was approved by the commissioners court Monday and County Judge Don Pozzi said it covers power used in 2011 and 2012.
Pozzi commended County Commissioner Kevin Janak for helping put together the deal. "Once again he's done an excellent job."
The contract with MidAmercian Energy locks in a rate of 6.71 cents per kilowatt-hour, which compares to the current price of 8.321 cents per kilowatt-hour.
That rate should save the county $175,000 to $200,000 total over 2011 and 2012, compared to 2009, Janak said.
"It is a substantial savings," he said. "It has been a long time since we have seen prices this inexpensive."
Janak attributed the lower power prices to less expensive natural gas prices, which he believes have reached a low. Natural gas is used to produce 70 percent of the nation's electricity and that's why it's a controlling factor in the price of electricity, he said.
"Everything revolves around natural gas," Janak said. "When the price of natural gas spikes, the price of electricity spikes."
The contract price does not include the cost of distribution and other fees controlled by the Texas Public Utility Commission. But there is no additional meter reading fee for the county's 72 meters, Janak said.
