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July 8, 2013

City, GEUS discussing TMPA membership

Asking for more time to make decision

GREENVILLE — Greenville city and electric utility officials intend to meet this week to talk about how much longer the city should continue to be a member of the Texas Municipal Power Agency (TMPA) and therefore receive power from the Gibbons Creek power plant.

While the city’s contract with the agency calls for an answer to be submitted by September, the GEUS board of trustees and the Greenville City Council are wanting another three years to make their decision.

The GEUS board intends to consider the issue under an executive session, as part of a special meeting agenda at noon Tuesday in the GEUS Operations Center, 6000 Joe Ramsey Boulevard in Greenville. The Council has the issue included under the consent calendar as part of Tuesday’s regular session agenda, starting at 6 p.m. in the Municipal Building, 2821 Washington Street.

The TMPA is comprised of the electric utility systems in Greenville (GEUS), as well as the cities of Bryan, Garland and Denton. The TMPA operates the Gibbons Creek coal-fired electric generating plant, which provides power to the communities.

In a memo to the Council, Interim City Manager/Director of Public Works Massoud Ebrahim noted Greenville’s TMPA representatives met with the Council on May 28 to discuss an amendment to the TMPA Power Sales Contract, asking for an adjustment of the notification of continued use period.

The TMPA contract requires each member city provide TMPA with a written notice by Sept. 1, 2013 to the effect that they want to either continue to receive, or no longer want to receive power from Gibbons Creek after 2018.

“Since none of the member cities can foresee what the economic or environmental situation will be five years in the future, it does not make sense to give the TMPA this notice by September 1, 2013,” Ebrahim said, recommending the city move the deadline to Sept. 30, 2016.

“It is believed that this is a more realistic deadline, which will allow the cities to evaluate changes to the electrical market as well as determine the effects of EPA regulation changes.,” Ebrahim said.

In order to change the Power Sales Contract and move the decision date to 2016, a formal amendment is required from each member city and GEUS.

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