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Deregulated Energy Contracts Renegotiated Statewide

Situation

TxDOT realized it might be able to get a better deregulated energy rate for powering its facilities.

The agency's Maintenance Division renegotiated deregulated energy contracts statewide, which includes about 60 percent of all providers in the state. The other 40 percent are not deregulated.

Solution

Negotiations resulted in reduced energy costs, as rates decreased from 9.6 cents to 6.4 cents per kilowatt. TxDOT's annual usage is approximately 150 million kilowatts.

Cost Savings

The energy contract renegotiation resulted in $4.5 million in annual cost savings. The $4.5 million in year-over-year savings has been redirected to support TxDOT pavement maintenance activities.