The energy’s renewable; sustaining the cash is up to you

August 1, 2013 by  
Filed under Green Energy News

The wind soon may  blow cash to some bank customers in Houston.

BBVA Compass, a bank franchise with offices in Houston, and Choice!Energy Services, a Houston-based retail energy consultant and broker, announced Thursday that many of the bank branches and facilities, including cash machines, will operate on  renewable power.

The two companies negotiated a 10-year fixed contract, allowing more than 200 of the bank’s branches, offices and ATM to run on renewable energy. The companies did not reveal the value of the contract.

The contract was designed specifically to meet the bank’s goals of an estimated 41 million kilowatt hours of green power annually, which will be supplied by AP Gas Electric.

Texas electric retailers seldom enter into 10-year contracts  because of the costs of hedging against  fluctuating prices over that length of time, said Bubba Levy, president of Choice. He said fewer than 10 such deals have been completed, most with institutional customers.

“A retail provider has to hedge gas for a fixed price, and this is pretty hard to do,” Levy said, and that price risk makes retailers  leery of handling lengthy  contracts.

“We are getting to the limit of capacity in Texas, and it will be more difficult to put together a deal like as we go on. BBVA secured this power at a fixed price for 10  years at a green price that was pretty low.”

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