Boston (Platts)--13Jul2007

Houston officials Friday said they plan to modify the city's electricity
supply contract with the Texas General Land Office and Reliant Energy to
purchase wind power for up to one-third of the electricity the city buys for
its offices, streetlights and other municipal needs beginning July 1, 2008. 

     Felix Johnson, Houston's energy manager, said the city plans to enter
into a five-year, fixed-price contract with GLO and Reliant Energy to purchase
roughly 50 MW of wind power from a Horizon Wind facility in Shackelford
County, Texas. 

     The fixed price itself has yet to be determined, but would be competitive
with conventionally generated electricity, Johnson said, adding that the
fixed-price nature of the deal also would provide a hedge against the
volatility of electricity prices in Texas, where most of the electricity comes
from natural gas-fired plants. 

     The city's peak demand is about 220 MW and it uses about 1.3 million MWh
annually, Johnson said. The city paid an average price of about $91/MWh for
the electricity it purchased in its 2007 fiscal year, which ended June 30.