The City of Houston will begin receiving wholesale electric energy beginning March 1 from a new supplier, launching a new era in proving power.
“We’ve been assured that the change in power supply will not be noticeable to Houston customers,” said City Administrator Larry Sutton. “Local customers will not experience any service interruptions because of the change.”
“Power supply contracts, transmission contracts, ancillary service agreements, communication equipment and metering are all ready to provide service,” said John Grotzinger, chief operating officer for Missouri Joint Municipal Utility Commission, MJMEUC.
The change completes a process that began in 2010, when Sho-Me Power Electric Cooperative notified Houston and 14 other south-central Missouri cities that it would terminate its wholesale power contracts with the municipalities in 2013.
After the cancellation notice from Sho-Me Power, Houston joined with 14 other cities to form the Mid-Missouri Municipal Power Pool (MMMPEP) to collectively secure a wholesale power contract. Using a competitive bidding process, the group of cities chose a proposal from MJMEUC, to become its wholesale power supplier.
Eventually 12 of the cities chose the MJMEUC bid over three competing ones because it provided the lowest increase over previous wholesale rates, the best five-year cost and rate stability and the most efficient supply management. For the last 13 year, MJMEUC has also provided power to MoPEP, a separate municipal power pool providing full power supplies to 35 other cities throughout the state. Additionally MJMEUC contracts power to 15 other cities in Missouri and Arkansas from individual power plants.
To participate in the negotiated contract with MJMEUC, Houston and the other cities took separate city council or board of aldermen actions to contract with it. These actions allowed the cities to act jointly to aggregate their load as provided in the state constitution and get the best bids possible for electric service. Houston retains full local control over its local operations and retail electric rates.
MJMEUC is the electric generation and services arm of the Missouri Public Utility Alliance (MPUA) which provides a broad range of services to almost 120 city utilities covering the entire state including natural gas services, consulting on environmental permits, low cost financing programs and advocacy with state and federal regulators and legislators.
The 12 member cities of MMMPEP include: Cabool, Cuba, Houston, Mansfield, Newburg, Richland, St. Robert, Salem, Seymour, Steelville, Sullivan and Willow Springs. The collective population of the 12 participating cities is 33,567.