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Energy Marketing

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Examples of Public Retail Customers:

  • Independent School Districts
  • Community, Junior & Technical Colleges
  • Public Colleges and Universities
  • State Agencies
  • Cities
  • Counties
  • Municipal Utility Districts
  • Other Local Government Agencies
  • Military Bases
  • Veterans Facilities
  • Municipalities

Since 1983, the Texas General Land Office has sold energy competitively to public entities to lower their costs and earn money for the Permanent School Fund.  Schools, cities and other public retail customers have saved money on their power bills, while helping deposit millions in the PSF.  The Texas Legislature authorized these sales by the Land Office to maximize revenues from the oil and gas royalties earned from state land.

The Land Office State Energy Marketing Program sells both natural gas and electricity: natural gas through the Public Customer Gas Program, and electricity through the State Power Program.

As an alternative to receiving these royalties in cash, the Land Office can, by agreement, take some of the natural gas as “in-kind” and sell the gas directly to public customers, or convert that gas to electricity, and sell that to public customers.

star Benefits of the State Energy Marketing Program

• Purchase Power Without Bidding
Purchase Power Without Bidding
Customers can buy power without a time-consuming and potentially costly bidding process, allowing them to lock in the right price at the right time. State of Texas bidding and procurement law requires a formal bid process for the procurement of goods and services which cannot be sole-sourced and cost more than $25,000 annually. Land Office sales agreements are either interagency or interlocal agreements, and are therefore exempt from the requirement for competitive bidding or requests for proposals (RFP).

• Multiple Pricing Options
Multiple Pricing Options
Customers wishing to have budget certainty can lock in fixed rates, allowing them to have a known cost for energy over the length of the contract. Customers with more budget flexibility can choose index pricing, allowing them to take advantage of market downturns. Customers can also choose to divide their contract between both fixed and index pricing, allowing them to take advantage of both options.

• Flexible Contract Terms
Flexible Contract Terms
The Land Office works with each customer during the establishment of a contract and throughout the term of the contract to meet their particular needs and deal with unforeseen circumstances. The agency goal is to provide energy to our customers at competitive rates.

• 30-day Payment Terms
30-day Payment Terms
Customers have 30 days after receipt of an invoice to make payment. This 30-day period is longer than a typical for-profit energy provider.

• Financially Secure State Agency as Your Energy Provider
Financially Secure State Agency as your Energy Provider
In the competitive marketplace, thinly capitalized retail electric providers come and go. The Land Office was established in 1836, and is the oldest state agency in Texas.

Links to Additional Resources

Contacts

Bryce Bales
Director
Energy Marketing
512.463.4033
Bryce Bales