CAPP Enables Small Texas Cities to Purchase RECs

Cities Aggregation Power Project (CAPP) has announced that Addison, Carrollton, Eastland and Highland Park have become the first Texas cities with populations less than 120,000 to authorize the purchase of Renewable Energy Credits (RECs) using a program created by the statewide electricity aggregator for municipal governments.

Carrollton, with 116,500 residents, is the largest city in the deregulated market to authorize purchase of RECs, while Eastland, with 3,900 residents, is the smallest Texas city to do so. Addison has 13,800 residents and Highland Park has 8,900 residents.

“As a small town, we have relied on CAPP’s attorneys and energy experts for a wide range of electricity market issues,” says Addison Mayor Joe Chow. “CAPP’s Renewable Energy Credit program gives us the opportunity to support sustainability initiatives through a state-administered program in which we otherwise wouldn’t be able to participate. I feel confident that our constituents will be proud of this action on their behalf.”

Austin, Brownsville and El Paso—which aren’t in the deregulated market—are the only other Texas cities that have purchased RECs since the state initiated its REC program in 2000, according to reviews of Electric Reliability Council of Texas (ERCOT) filings.

Texas also requires that competitive electricity providers purchase RECs annually as a way of ensuring demand for renewable energy and to fund construction of such projects. No similar requirement exists for cities. Addison, Carrollton, Eastland and Highland Park made their recent authorizations voluntarily.

CAPP initiated the REC purchase program in August at the request of its members, 101 Texas cities representing more than three million Texans.

“Even though most of the Cities Aggregation Power Project member cities are outside the state’s major population centers, they understand everyone needs to help Texas encourage sustainable, pollution-free energy sources, especially in the deregulated areas of the state,” said Jay Doegey, Chairman of CAPP. Doegey expects more member cities to purchase Renewable Energy Credits (RECs) through CAPP.

“We have listened and responded to our members’ desire for programs that demonstrate energy stewardship,” Doegey said. “Addison, Carrollton, Eastland and Highland Park are the first to take part in the program, and we expect many other Texas cities will follow their lead.”

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