XI. Utility Services Plan
Agency: Texas A&M University-Kingsville
Contact: Oscar Castillo
Address: Texas A&M University-Kingsville, MSC 111, Kingsville Texas 78363
TAMUK is billed monthly for electricity, gas, water, sewer and solid waste. Power is purchased through Sempra while line service is provided through AEP. TAMUK pays for both power and line service on a monthly basis. Aggregating loads and purchasing electricity as a single market purchase is done by TAMUS who negotiates the purchase of power and setting of rates (POC, Dr. Dan Turner). This purchasing practice is likely to continue as a long-term strategy as long as the price is favorable.
TAMUK has its own water wells and it does purchase minor amounts of water at commercial rates when needed to supplement our own wells (normally on an emergency basis). However, for the past 3 years TAMUK water well production has been down and city use up with an average of about 7.1 million gallons per month year round. The cost to purchase all water from the City of Kingsville would be approximately: 7,100,000 x 0.00279$/gal x 12mo+7,100,000 x 0.00234$/gal sewage= $437,076 per year for the water and sewage. Water alone would be approximately $237,708. We have to pay for sewer based on quantity of water into sewage disposal, whether or not we purchase from Kingsville or not, so that cost is not calculated, other than to mention the rates for sewer have gone up for commercial users from $1.96 to $2.79 per 1000 gallons. Other than nominal costs for pumping into our distribution system, our water is free. Thus, it is cost effective to continue producing our own water.
TAMUK purchases Natural Gas through the State of Texas General Land Office (GLO), which determines the rate based on Federal Energy Regulatory Commission (FERC). The five year outlook would likely have TAMUK continue purchasing natural gas from GLO. The Public Customer Gas Program of GLO was established in 1983 through the State's appropriation bill. It directed state agencies to reduce their utility costs by buying lower priced gas being produced on state lands. Contracts went into effect in 1985 with 33 state agencies participating. Currently GLO sales price for natural gas is based on an index equal to the price posting as first published each month in Inside F.E.R.C.’s Gas Market report in the section titled “Delivered Spot-Gas Prices” under the heading “Houston Ship Channel/Beaumont, Texas” and under the subheading “index (large packages only)”, plus Market Demand Factor (currently 10%). Even if an agency wished to purchase from other than GLO, they would still have to have GLO evaluate whether or not GLO could meet or beat their price and if GLO could meet or beat, would have to purchase from GLO.
This page was last updated on: July 07, 2011