The "Money" Chart on Georgetowns Power Costs

In addition to the secrecy surrounding Georgetown's electric utility, it is now evident that the City was not truthful with the public. This statement from the city website exemplifies what the city has been telling the public in various media. They claim that the losses are due to the depressed market prices and that those prices were not knowable in advance.

"For the excess power the City doesn’t consume that is cleared to the market, the price depends on time-of-day and the season. But on average for the year, this excess power is a loss due to depressed market prices. However, over time, the losses will lessen. The biggest relief will come in 2021 when the last Mercuria contract expires. That will create a savings of over $10 million per year."

Here is the city chart used at Texas A&M in January, 2017.

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It is clear that from 2009, the price of natural gas has been declining through July 2016. Natural gas is used to generate electricity, and the price of electricity has been declining. The following chart comes from the EIA.

Even though there is volatility, the trend in the electricity price to consumers in Texas was down.


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The city knew this when they signed the wind contracts in 2015 and it was certainly evident when the solar contract was signed in 2018.

So to tell the citizens of Georgetown that the decline in electric market prices was not knowable, is disingenuous at best and incompetent at worst. The data show otherwise.