CAPP and First Choice to offer savings through electric aggregation when Texas market opens

FORT WORTH, Texas, Nov. 26, 2001 – Cities Aggregation Power Project, Inc. and First Choice Power have negotiated a one-year electric power agreement to offer volume savings to CAPP’s member political subdivisions. The arrangement becomes effective Jan. 1, 2002, when electric retail competition begins statewide.

CAPP is a non-profit corporation with membership available to political subdivisions in Texas that purchase electricity for public facilities. Its membership consists of 71 cities and two water districts from North and West Texas. CAPP was created to achieve volume savings by combining the electric load of members’ electric utility accounts. CAPP solicited information from all known providers of electricity and ultimately had five bidders for CAPP’s load.

According to Jay Doegey, chairman of CAPP and City Attorney for the City of Arlington, “First Choice offered the best price for CAPP members with overall savings ranging from 7 to 30 percent when compared to price-to-beat savings, depending on the cities served.”

“This is an ideal arrangement for both First Choice and for CAPP,” said Manjit Cheema, president of First Choice Power. “Our current customers already recognize the value of great pricing accompanied by excellent service. Now many other cities in Texas will enjoy similar benefits.”

Consultants for CAPP concluded that the deal with First Choice Power will yield more than $10 million in savings for CAPP members when compared to price-to-beat rates offered by incumbent utilities in 2002.

First Choice Power is a retail electric provider and a wholly owned subsidiary of TNP Enterprises and an affiliate of Texas-New Mexico Power Company, which provides community-based electric service to 85 cities and more than 238,000 customers in Texas and New Mexico.

CAPP is designed to be the means by which cities and other political subdivisions can have a continuing presence in the deregulated marketplace, and thus create efficiencies and bargaining strength that will lead to lower costs.

For a complete list of CAPP members or for further information on CAPP, call Jay Doegey (817-459-6878) or e-mail Geoffrey Gay (ggay@lglawfirm.com ). To learn more about First Choice Power, visit the company website at www.firstchoicepower.com .

Editors’ Note: CAPP members are currently served by three different utilities: TXU Electric, West Texas Utilities and Texas-New Mexico Power Company. The membership is spread from Nacogdoches in East Texas to Denison and Wichita Falls in North Texas to Odessa and Fort Stockton in West Texas to Waco in Central Texas. However, most of CAPP’s load is located in the Metroplex and includes the Cities of Arlington, Plano, Irving, Carrollton, North Richland Hills, Hurst, Euless, Addison, The Colony, Grand Prairie, Lewisville, Mansfield and Cleburne.

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