Energy for Schools is a Political Subdivision Corporation organized under the authority the Texas Local Government Code. It is organized exclusively for the purpose of negotiating the purchase of electric services on behalf of its Members.
History
In 1999, the Legislature passed Senate Bill 7 and introduced retail electric competition in the State of Texas. Retail choice in the electric industry started in 2001 with a small scale pilot project. On January 1, 2002, full retail competition began for electricity consumers in the state. Customers (both residential and commercial) are able to choose a retail electric provider (REP) to supply their electricity needs. Energy for Schools is a political subdivision corporation registered with the PUCT as a Class IIB aggregator that provides electricity service to member school districts.
About Aggregation
Many rules and procedures have been developed by the Public Utility Commission of Texas (PUCT) and other industry participants in order to implement the law passed by the Legislature. For example, one such rule addresses the aggregation or combining of electric loads. In the restructured Texas market, electricity aggregators play a major role. The aggregator joins two or more customers together to form a single purchasing unit to negotiate the purchase of electricity from REPs on behalf of the customer group. The most immediate benefit of aggregating loads is the ability to purchase electricity at lower prices due to volume discounts. To provide this service, the aggregator must be registered with the PUCT.
Several types of aggregators can exist under the law. One type of aggregator is the “political subdivision aggregator” which is a political subdivision corporation. Energy for Schools is a political subdivision corporation registered with the PUCT that serves as an aggregator of the electricity loads of member school districts.