AEPEP Electrical Contract

Monday, April 13, 2015 - by Doodie Taylor-Knox

Dear Editor,

The second issue in our community dealing with the electrical contract is the legislation recently introduced into the Texas House of Representatives. Both bills, HB 2715 and 2716, relate to the confidentiality of certain information about the operation of municipally-owned utilities (MOUs).

The bills were written because Coleman citizens have never been allowed despite multiple FOIA requests to see the Merriman/Poage/Catoe renegotiated 2012 AEPEP contract. Those requests as well as requests for the 2010 amendment have always been denied on the basis of trade secrets and confidential information. All that despite the fact that the original 2007 contract was released in its entirety, trade secrets included, in 2011. And, despite the fact that the latest FOIA requests for the 2012 contract clearly request NO TRADE SECRETS AND NO COMPETITIVE MATTERS. Again, the requests were denied by both the City of Coleman and AEPEP.

The extent of information recently released to Coleman citizens was the result of a social network campaign. Mayor Joffrion asked and was allowed to release two very important terms of the 2012 contract: 1) congestion fees would go into effect beginning January 1, 2015; and 2) the contract had been extended for an additional year, ending December 31, 2018.

Upfront, I want it understood, I don’t care nor have I ever cared about AEPEP’s trade secrets. They want to operate under a cloak of darkness that is their business as long as they allow their customers (the City of Coleman) to be honest, and their customers are allowed to openly discuss their contract with their own customers (the citizens of the City of Coleman). That is not happening in Coleman! The proposed legislation aims to ensure no other small town like Coleman is ever again put in this situation.

While the two bills are basically the same, HB 2716 narrows the scope of coverage to MOUs operated by towns that are less than 6,000 in city population which are also a county seat within a county of 10,000 or less. This narrowed scope means it affects only nine (9) MOUs: Coleman, Tulia, Seymour, Mason, Brady, San Saba, San Augustine, Floydada, and Goldthwaite.

To explore the idea of moving forward, since I like to have all my ducks in a row, I researched the electric rates in the nine towns. That research showed base per kilowatt hour charges ranging from 3.62¢ to 7.0¢; total kWh billings to customers after adding a power recovery charge that range from 10.31¢ to 16.5¢; and meter rental charges from $6.06 to $13.50.

The statistics show that, of the nine towns, Coleman has the highest custom charge, energy charge per kWh, minimum charge, and certainly, Power Cost Adjustment per kilowatt hour of energy used.

Is that all AEPEP’s fault? No. Does the City of Coleman have to take responsibility for their increase in these costs? Yes. Is it wrong for the City of Coleman to take this action? No. They are in the business to run this city and provide its citizens certain services. However, what, in my opinion, is wrong, is the city’s lack of planning for the future of our community. At this point in the contract, it might actually be feasible for some company to buy out the AEPEP contract.

Certainly, it is not wrong to start looking, planning, and preparing for the future now. The only way you can do that is to look at the contract and start planning NOW. We can’t do that because it is a confidential contract at the request of whom, I don’t know nor can I get a clear response why, especially when no trade secrets have been requested. This subject was a topic at one of the more recent city council meetings. A video of that meeting can be seen at http://colemanconnected.com/post.asp?id=1&t=audio-video-of-very-passionate-discussion-3-19-15

. Judge for yourself.

I know the council is in a precarious situation of taking any side. It is easy to say this is all their fault, when the reality is that the council is just as clueless as we are. I have to ask: Has the council even read the 2012 contract to see what is so confidential? I know they struggle to make the right decisions. What can you as residents do? Become involved. Start asking our city and the council about our future as a community. What are the plans for our electricity? Certainly, it is not too early to start planning. Certainly, we don’t want to keep renewing a contract for additional years that none of us see as fair to any part of our community.