Bringing Budget Certainty to Texas Cities

Authorized when the Texas Legislature took action to deregulate the state’s electricity market in 2001, the Texas Coalition for Affordable Power is a unique alliance of cities and other political subdivisions that have joined together to purchase electricity for their own governmental use.

The more than 160 cities and other political subdivisions that comprise TCAP purchase in excess of 1.4 billion kilowatt/hours of power each year, making it the largest coalition of its type in the state.  Using the strength of its numbers, TCAP negotiates terms and conditions for electric service that may be unavailable to a single city acting alone. This promotes healthier city budgets and benefits taxpayers.

TCAP was originally two separate non-profit corporations, the Cities Aggregation Power Project and the South Texas Aggregation Project, which merged in 2010. TCAP membership is open to all Texas cities (and other political subdivisions such as water districts) that purchase electricity in the deregulated market. It is run entirely by its members. The voluntary 15-person TCAP board of directors is made up of city officials and executives who meet once a month.

TCAP members enjoy a wide array of services that include professional consultant advice on electric load management and billing issues and access to legal counsel regarding electric utilities.

Other Benefits:

  • TCAP’s unique power-contracting arrangement provides price stability in the state’s deregulated energy market.
  • TCAP allows cities to estimate their energy costs with more certainty and to budget accordingly.
  • Members can rely on TCAP’s experienced legal and energy consultants to evaluate energy purchase options, investigate and resolve billing questions and switching problems, and provide insights into the complicated deregulated energy market.

Over the past nine years, member cities have saved as much as 20 percent off the average energy rate that they would have paid without TCAP, often amounting to tens of thousands of dollars that can be used for other city services vital to residents.