Can someone give me some background on this? I am looking at COCS utility rates for electricity ($.11+/kWh), versus Bryan ($ .0858/kWh), versus Power to Choose (Deregulated Market) $.05-.06 /kWh. What gives? How come there is not more push back on how ridiculous the cost is compared to the market? Is some other unknown costs baked in that I am missing? Just seems a little odd that there is a $.02 spread between Bryan and COCS, and even larger spread compared to other deregulated markets? Any chance COCS goes to Deregulated market any time soon?

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Austin Energy Rates
CPS Energy (San Antonio)

Look what you you have running College Station? Academia,developers and realtors. The energy in CS is so high because the city signed a contract to buy green energy at a premium, because they felt the good citizens of CS would voluntarily sign up for the higher priced green energy,complete fail and now we are all paying a higher price to absorb the cost. Don't know the terms or duration of the contract but it is costly.Think the city council has the town locked in so that you cannot use an alternate provider.

You may be forgetting the TDSP charges in the deregulated markets. That 5 to 6 becomes 11 for an average usage of 2000kw....

Looks like based on power to choose those rates already include the TDSP Charges?

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Can someone give me some background on this? I am looking at COCS utility rates for electricity ($.11+/kWh), versus Bryan ($ .0858/kWh), versus Power to Choose (Deregulated Market) $.05-.06 /kWh. What gives? How come there is not more push back on how ridiculous the cost is compared to the market? Is some other unknown costs baked in that I am missing? Just seems a little odd that there is a $.02 spread between Bryan and COCS, and even larger spread compared to other deregulated markets? Any chance COCS goes to Deregulated market any time soon?

For Additional NOIE Entities Info Comparison
Austin Energy Rates
CPS Energy (San Antonio)

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Bryan owns their utility company. CS goes through the middleman so to speak. Bryan will always be cheaper than CS. Just the way it is.

I moved from CS in the last couple of months and my bill went from an average of $250/mo to $75/mo. And I'm in a bigger house. I couldn't even turn my ac below 75 in the summer unless I wanted a $400/mo bill in a house less than 1500sqft. And the ac was regularly serviced. Utilities in CS are a nightmare.

Also COCS used (not sure if they still do) this as a hidden tax transferring partial profits to the general fund and sponsoring city events.

-As mentioned above, COCS has historically jacked up the electric rate and put the excess into the general fund to subsidize property tax payers in addition to having CSU sponsor various things like concerts, etc. The idea being there are lots of students in apartments, etc that aren't emotionally invested in the community long term so they aren't going to complain. Jack up the rate to use the money elsewhere.

-BTU has historically bought through and participated in TMPA, a buying pool where multiple towns in TX pool their purchases together to both generate it and buy it in bulk and get a better deal. CSU has always negotiated their own contracts and has no generation.

-BTU had Dan Wilkerson running it for years. The common joke about Dan from companies that sell big, expensive power system equipment was "Dan could pinch a penny so tight he could make Lincoln scream". It was pretty well known in the electrical industry he could triple his salary or more overnight if he left BTU...but he liked it here.

-The deregulated market (prices on power to choose) have fallen significantly from what they used to be since fracking has allowed so much natural gas to hit the market. The deregulated market prices are more volatile and change significantly with natural gas prices. Cheap gas means the Retail Energy Providers like Champion, Amigo, Reliant, TXU and others can offer pretty cheap electrical contracts for the short term because so much of their generation is natural gas. CSU is locked into a longer term contract that doesn't have as much volatility....but doesn't let them lower short term prices to market rates when they go down.

-The "green purchase" mentioned earlier. CSU ran their program backwards. Most utilities offer customers a chance to sign up to pay more for specific amounts of green power AND THEN go out and buy that power knowing its pretty well spoken and paid for. CSU decided they would contract for X green power they thought people would buy and then offered people a chance to sign up. Their subscription rate was miserable because people said "its already bought and in the system so why should I sign up to pay extra for it"?

College Station Utilities doesn't generate its own electricity, which means we depend on long range contracts and the market to supply our power with the goal of maintaining a consistent, reasonable cost for our customers. Although low prices can be found currently in the deregulated market due to natural gas being in the $3 range, it was not long ago that the best deal in the deregulated market was at $0.17/kwh and natural gas was at $12+.

We have not had an electric rate change in four years, although expenditures have increased significantly as we keep up with our community's growth. Each year, through our budgeting process, the needs of the utility and the rates charged are reviewed by the city council to make sure that the electric utility is financially stable and that customers are being offered the best deal possible, including not only rates, but service, reliability, aesthetics, and the needs of the community.

Our electric revenues are used to provide reliable service through maintenance and planning; to beautify our city to attract business and improve property values by keeping most of our lines underground; and to ensure that our electric infrastructure stays ahead of our rapid growth.

We offer our customers ways to lower their utility bills through conservation by performing energy and water audits to see where greater efficiencies and cost savings can be achieved. These audits are free for CSU residential and business customers. We also offer energy conservation programs to help with the cost of upgrading equipment.

Hope this helps!

Colin Killian
Communications Manager
City of College Station

The transfer out of money out of the CSU Enterprise fund irks me, and I am not a CSU customer or currently even within the city limits of College Station. But when they annex me (soon) I will begin to collect signatures on a Referendum (or is it a proposition) to divest CSU. They are taxing different citizens based on electric providers (the unlucky CSU customers).
CSU used to buy power from BTU. Then the squabble happened and CS they got a good deal from Gulf States, except after you added the transmission cost it was actually higher than BTU. At least CSU is back on the ERCOT grid or they would have been a participant in the widespread outages after Ike.
BTU produces power, and also sells it excess. BTU is not immune from rate increases. Their participation in TMPA has helped their rate since coal traditionally been the cost leader for base loads. But TMPA balloon payment is due in 2018 and The Obama administrations changes in the EPA may move it to the highest cost source. If they do this TMPA may cease to exist within the next few years.
San Antonio has typically had the lowest power price of the municipal utilities since they have a very diverse fuel base. Austin has a diverse fuel base but lots of expensive renewable sources also.

Thanks Colin. Many of us like College Station just the way it is and choose to live here for that very reason.

When you get annexed your utility provider does not change, so you will see no change in your rates ect.

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-As mentioned above, COCS has historically jacked up the electric rate and put the excess into the general fund to subsidize property tax payers in addition to having CSU sponsor various things like concerts, etc. The idea being there are lots of students in apartments, etc that aren't emotionally invested in the community long term so they aren't going to complain. Jack up the rate to use the money elsewhere.

-BTU has historically bought through and participated in TMPA, a buying pool where multiple towns in TX pool their purchases together to both generate it and buy it in bulk and get a better deal. CSU has always negotiated their own contracts and has no generation.

-BTU had Dan Wilkerson running it for years. The common joke about Dan from companies that sell big, expensive power system equipment was "Dan could pinch a penny so tight he could make Lincoln scream". It was pretty well known in the electrical industry he could triple his salary or more overnight if he left BTU...but he liked it here.

-The deregulated market (prices on power to choose) have fallen significantly from what they used to be since fracking has allowed so much natural gas to hit the market. The deregulated market prices are more volatile and change significantly with natural gas prices. Cheap gas means the Retail Energy Providers like Champion, Amigo, Reliant, TXU and others can offer pretty cheap electrical contracts for the short term because so much of their generation is natural gas. CSU is locked into a longer term contract that doesn't have as much volatility....but doesn't let them lower short term prices to market rates when they go down.

-The "green purchase" mentioned earlier. CSU ran their program backwards. Most utilities offer customers a chance to sign up to pay more for specific amounts of green power AND THEN go out and buy that power knowing its pretty well spoken and paid for. CSU decided they would contract for X green power they thought people would buy and then offered people a chance to sign up. Their subscription rate was miserable because people said "its already bought and in the system so why should I sign up to pay extra for it"?

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Great points. This conversation has come up before and someone pointed out where Crompton, IIRC, said the transfers from CSU to the general fund acted as a hidden tax on students, who typically rent instead of buy homes. Take it for what it's worth, but I think that's part of the underlying philosophy with CSU's higher rates. This is a way for students to help contribute to the city.

Absolutely won't change for me, but why should people that HAVE to use CSU pay an extra 10% to cover what is essentially a city tax. Enterprise funds should be left funding the enterprise. Lower rates appropriately and fix the overall tax for the loss if necessary. Then when people compare tax rates it will be a realistic comparison. People say property taxes are higher in Bryan (they are) but part of its an illusion because CSU customers are lowering the rate necessary to achieve the funding level by their contributions the the General fund. This will absolutely cost me more money but its more equitable. I don't really want to fund the typical college station boondoggles, like tacky art in public places, wolf pen drainage ditch, tax drain parking garage just a few among their hundreds. But why should CSU ratepayers shoulder more of the burden.

Students contribute to property tax by paying rent. I believe a smart landlord would consider his tax bill when deciding how much rent to charge.

I haven't run the numbers but I am pretty sure even with higher utilities it is overall cheaper in CS. If you were to try and changed the set up my guess is that owners of rental property would have something to say about it though. We are all entitled to our own opinion I guess.

Since it is April 15th, I'll ask this question: is my CSU bill deductible like my property taxes are?

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Since it is April 15th, I'll ask this question: is my CSU bill deductible like my property taxes are?

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No. If you want a higher property tax and a lower utility bill, then Bryan is the place to be.

(Which, I think, was your point.)

Actually a couple hundred yards south of the cocs border is great until the next annexation.

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I haven't run the numbers but I am pretty sure even with higher utilities it is overall cheaper in CS.

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When we moved from CS to Bryan, I did this very exercise. I found there to be negligible difference when adding the two expenses together. Hoewever, the property taxes are deductible for federal tax purposes, which favors the Bryan setup....at least for those tht itemize.

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College Station Utilities doesn't generate its own electricity, which means we depend on long range contracts and the market to supply our power with the goal of maintaining a consistent, reasonable cost for our customers. Although low prices can be found currently in the deregulated market due to natural gas being in the $3 range, it was not long ago that the best deal in the deregulated market was at $0.17/kwh and natural gas was at $12+.

We have not had an electric rate change in four years, although expenditures have increased significantly as we keep up with our community's growth. Each year, through our budgeting process, the needs of the utility and the rates charged are reviewed by the city council to make sure that the electric utility is financially stable and that customers are being offered the best deal possible, including not only rates, but service, reliability, aesthetics, and the needs of the community.

Our electric revenues are used to provide reliable service through maintenance and planning; to beautify our city to attract business and improve property values by keeping most of our lines underground; and to ensure that our electric infrastructure stays ahead of our rapid growth.

We offer our customers ways to lower their utility bills through conservation by performing energy and water audits to see where greater efficiencies and cost savings can be achieved. These audits are free for CSU residential and business customers. We also offer energy conservation programs to help with the cost of upgrading equipment.

Hope this helps!

Colin Killian
Communications Manager
City of College Station

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$12 gas peaked in 2008 - that's 7 years ago and unless CNG export finally takes off we won't touch $6 gas for years. So I'm saying that's not a good example in my book. The rapid development of south College Station is also a strong increase in revenue compared to the same year - 2008. I have a hard time swallowing the subsidized pill your offering though I'm obviously not upset enough to move.

BTU owns generation to produce energy. They don't need to purchase it off the market. CSU doesn't own generation and has to buy everything they use.

CSU could try and get the taxpayers to fund a generator but nobody in College Station would go for it. So...you will always pay more.

I understand the reasoning behind it, but I think that it is unfair and should be illegal to require any citizen to purchase electricity from a specific supplier just because you live in a particular location.