By Rich Flowers
May 14, 2008 09:48 am
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The Henderson County Commissioners Court discussed shopping for a better electrical rate Tuesday, but stopped short of giving County Judge David Holstein authority to execute a contract.
Commissioners tabled the agenda item, designed to allow Holstein to move quickly to lock in a “futures” rate that would go into effect when the current contact with Houston-based GEXA Energy ends in October. A “futures” contract obligates the provider to deliver service at a future date for a pre-arranged price.
“Once we sign a contract, the rate will be locked in at that moment,” Henderson County Purchasing Agent Sherry Carmichael said.
Carmichael is continuing to compare rates offered by various providers and expects the county to link with electrical cooperative rather than enter another stand-alone contract like the one with GEXA.
In the current market, Carmichael said, rates fluctuate about every 15 minutes. Between the time she gets a quote from a provider to the time the commissioners court could meet and approve it, there could be a costly change in the rate.
“If the prices continue to go up, as we believe they will, then it’s a good deal,” Holstein said. “If everything tanks and the price of oil falls to $100 a barrel, we probably made a bad investment.”
Pct. 4 County Commissioner Jerry West said the county has not seen a drastic increase in electric rates since signing with GEXA in 2006. Despite the climbing price of oil, the county’s electrical rate has only risen about 12 percent.
Holstein said in her negotiations with the electrical co-ops Carmichael should receive a history of past rate fluctuations. He said he would like to see a study of rates over the past 20 years to determine the best time of year to enter a futures contract for electrical service.
“For instance, when we did the jail bond, I took the previous 20 years of bond rates on a day-to-day basis and looked at them,” Holstein said. “There were two times a year where the rate dipped, 15 out of the 20 years. Sure enough, that’s when the rate dropped and we got a good bid.”
Pct. 3 Commissioner Ronny Lawrence said he is opposed to giving Holstein the authority to enter a contract independent of the court.
“We meet every week. I can’t see where a day or two delay before the court could meet would make any difference,” Lawrence said.
Holstein said he has no problem with the court executing the deal during a regular meeting.
In other action, commissioners approved:
• a proclamation declaring May Labor of Love month in Henderson County;
• a proclamation declaring May Elder Abuse Prevention Month in Henderson County;
• accepting a $500 donation from themselves for repairs at the Senior Citizens Center;
• accepting a $610.94 reimbursement from the City of Log Cabin for culverts purchased from Precinct 1;
• setting a public hearing for 9:30 a.m., June 3, to close a 50 by 300 foot portion of County Road 4827; and
• payment of bills in the amount of $203,175.09.
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