13 - GEXA Energy Invoice Ancillary Charges

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GEXA Energy is the retail electrical provider for 100+ TCAP communities. They are not the ones who produced these prices, they are simply the middle entity that purchases our power and provides it to us. They were given a bill of $32 million on behalf of all its TCAP communities which they have paid but now need all the TCAP communities to pay them back — they are floating us during this time. They have taken the total bill and applied it to each of the communities based on their usage during that winter storm. STATUS OF ISSUE: The City of Paris has been given a bill of $450,005.34. This is our portion of the roughly $32 million paid by GEXA Energy. After speaking with TCAP and their legal representation Lloyd Gosselink Rochelle & Townsend, this is an official bill that must be paid. Without legislation that would go back and reprice what was charged in February 2021, this is truly our costs from that storm. The GEXA letter states that the contents of the letter is confidential, but after speaking with TCAP and LGRT, we have been able to make this letter available tonight by simply redacting the $/kWh charge found in the three tables as that is proprietary information in our CESA. GEXA Energy has provided us with two payment options in their letter. 1. Pay the full amount of $450,005.34 upfront. 2. Pay a monthly Charge of $24,224.65 from June 2021 — December 2022 (2.2% interest rate). 3. Pay a monthly Charge of $6,763.48 from June 2021 — December 2028 (8.7% interest rate). BUDGET: The City of Paris did not budget for such a massive expense. Even making the listed payments would have significant consequences to our budget given our legislative -mandated caps on raising revenue to provide services. Paying from our reserves would also hurt our operations. But, the City did receive the $1,393,150.00 in Coronavirus Aid, Relief, and Economic Security (CARES) Act Funding in 2020. The City has performed all necessary documentation and reporting so that the conditions have been satisfied making this funding available to any desired municipal purpose, the balance being approximately $1.1 million. Therefore, these funds are available to cover this GEXA Invoice. The 2.2% and 8.7% will add tens to hundreds of thousands of dollars to the final bill if not paid up front. According to TCAP and LGRT, if the legislature were to eventually come back and reprice the winter storm power events of February 2021, GEXA Energy has agreed to reimburse each City their share of the repricing. Therefore, we would have no risk of paying it all upfront vs. holding out and hoping something might happen later.