A request for proposals was issued in February, and twelve proposals were submitted to provide these services for the city, a release said.
In August, council voted to proceed with contract negotiations with two finalists. Shell was selected based on their overall capabilities, cost, and the specific energy portfolio needs of the city, according to the release.
It said Shell’s services include developing and making recommendations regarding how Georgetown’s energy is traded in the Texas energy market. They will also assist in forecasting energy needs, energy costs, and addressing challenges related to transmitting energy around the state, all of which affect the city’s costs associated with purchasing power.
In May, Schneider Engineering completed its assessment of the city’s practices related to purchasing and managing energy, the release said. The first recommendation was to secure new third-party energy management partners that more rapidly respond and react to changing market conditions and better ensure against market volatility.
"Schneider also recommended developing and implementing a comprehensive risk management policy that sets boundaries on risk tolerances, financial obligations, and guides decision-making at all levels of the electric utility," the release said.
Council completed the first reading of a new energy risk management ordinance Dec. 10, with a second reading scheduled for Jan. 14.
The assessment also recommended studying alternative governance structures for the electric utility, such as a separate oversight board.
"Council has had several discussions regarding a new Georgetown Electric Board to aid the City Council in policy oversight and reviewing monthly risk management policy updates, along with receiving periodic risk management policy compliance reports from an independent third-party," the release said.
The new board structure is expected to be implemented in 2020.