City of McAllen Receives Thousands of Dollars in Rebates from Non-Profit Group

by Office of Communications | Nov 13, 2017

More than $418,000 — that’s how much has been delivered back to the City of McAllen thanks to its membership in the state’s leading municipal electricity buying group, the Texas Coalition for Affordable Power.


“The City of McAllen has received hundreds of thousands of dollars in rebates, thanks to its participation in this non-profit organization,” said McAllen City Manager Roy Rodriguez, who also has served as a coalition board member. “We expect to save even more money in the future, thanks to the low prices in TCAP’s new power contract. This money really adds up.”


TCAP is a non-profit coalition of 179 cities and other political subdivisions that have joined together to purchase power in bulk for their own governmental use. Through the power of its numbers, TCAP negotiates competitively-priced energy contracts that also include important member protections.


The coalition is overseen solely by its political subdivision members and operates exclusively for their benefit. It regularly returns surplus revenue — including a total of $418,771 back to McAllen since 2010. That includes a check for nearly $21,000 at the end of the most recent fiscal year. This is money that retail electric providers typically keep as profit.


TCAP has disbursed nearly $11.4 million back to members overall since its formation seven years ago, and more than $1.7 million this year alone. Funding for the most recent end-of-the-fiscal-year dispersals comes thanks to TCAP's unique members-first energy contract that delivers cash back whenever certain technical and surplus requirements are met. Most members were eligible this year for the checks, which varied in size based on electric usage and other factors.


“With TCAP, these rebates benefit cities and by extension, their taxpayers,” said TCAP Executive Director Jay Doegey. “TCAP also recently negotiated a rock-bottom electricity contract for its members. This should result in even more savings for our city members for years to come.”


TCAP members also have access to professional energy and billing consultants.  The coalition’s 15-member board is comprised entirely of city officials. McAllen has been a member of TCAP and a predecessor organization since 2002.


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