Texas Coalition for Affordable Power

What Texas Coalition for Affordable Power does

Texas Coalition for Affordable Power (TCAP) is a nonprofit electricity aggregator formed in 2011 through the merger of the Cities Aggregation Power Project (CAPP) and the South Texas Aggregation Project (STAP), two coalitions established by Texas cities in 2001 in response to state electricity deregulation. Headquartered in Addison, Texas, TCAP serves more than 160 Texas political subdivisions — cities, municipalities, counties, water districts, housing authorities, river authorities, airports, and port authorities — operating exclusively within the ERCOT (Electric Reliability Council of Texas) deregulated market. Members collectively purchase in excess of 1 billion kilowatt-hours of electricity annually, making TCAP the largest coalition of its type in the state.

TCAP's core offering is electricity aggregation through a Strategic Buying Program (SBP) that purchases energy whenever wholesale electric market prices are most advantageous, rather than locking members into traditional long-term fixed-price contracts that embed risk premiums. The coalition contracts through a three-party structure with a retail electric provider (Gexa Energy) and a wholesale provider. Supporting technical infrastructure includes a custom Energy Portal (built in partnership with NextEra Energy Services) that provides members self-serve access to billing data, invoices, TDSP charge details, account reconciliation summaries, and payment listings. Educational products include a How to Buy Electricity Primer, solar and conservation guides, case studies, and monthly webinars on energy market and legislative topics.

TCAP is funded solely through a $0.0008 per kWh aggregation fee — approximately five times lower than typical broker fees of $0.0040 per kWh — and does not charge membership dues. The organization operates as a member-governed coalition with a 15-member Board of Directors elected from member cities and a small professional staff supplemented by contracted consultants in legal (Lloyd Gosselink), energy, marketing, and legislative matters. TCAP has no profit motive, no parent company, and no external ownership; it is governed entirely by its member political subdivisions and explicitly positions itself as an alternative to commission-based retail energy brokers.

Name

Texas Coalition for Affordable Power

Legal name

Texas Coalition for Affordable Power

Website

https://tcaptx.com

Company type

Private

Founded year

2001

Operating status

Operating

Headcount range

1–10 employees

Short description

Texas Coalition for Affordable Power (TCAP) is a nonprofit electricity aggregator serving 160+ Texas political subdivisions within the ERCOT deregulated market, negotiating lower energy rates through collective purchasing power funded by a $0.0008 per kWh aggregation fee.

Ownership category

akta.pro rank

Product category

Electricity Aggregation Services

NAICS

Electric Power Transmission, Control, and Distribution (22112), Utilities (22)

SIC

Electric Services (4911)

akta.pro industry

PRIMARYEUAGABAF

Community Choice Aggregation (CCA) / Municipal Aggregation Retail Supply

Energy, Utilities & Environment/Energy Trading, Marketing & Retail Supply/Retail Energy Supply (Residential & SMB)

SECONDARYEUAGAEAC

Aggregation Services (Load Aggregation, Community Choice, Buyer Pools)

Energy, Utilities & Environment/Energy Trading, Marketing & Retail Supply/Energy Brokerage, Aggregation & Switching Services

SECONDARYEUAGADAC

Retail & Community PPAs (Community Solar/Shared Renewables)

Energy, Utilities & Environment/Energy Trading, Marketing & Retail Supply/Power Purchase Agreements (PPAs) & Structured Energy Products

Keywords

• Electricity aggregation services
• Municipal energy procurement
• Political subdivision energy
• Nonprofit energy coalition
• Bulk electricity purchasing

Headquarters

HQ city

Addison

HQ country

United States

HQ region

North America

Offices1 record

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Operations, Marketing or Sales, Others

Revenue model

1. Aggregation Fee: TCAP is funded through a small aggregation fee (a small percentage of a penny per kilowatt-hour, specifically $0.0008 per kWh mentioned in case studies). This fee covers operational costs including attorneys, energy consultants, public relations specialists, web portals, websites, and market reform advocacy. TCAP is explicitly stated to have no profit motive.

Pricing tiers

Go-to-market motion2 records

Distribution channels4 records

Marketing channels8 records

Core offering

Texas Coalition for Affordable Power (TCAP) is a nonprofit electricity aggregation coalition that pools the energy purchasing volume of more than 160 Texas cities, counties, water districts, school districts, and other political subdivisions to negotiate lower electricity rates and favorable contract terms from retail electric providers. The coalition employs a Strategic Buying Program (SBP) that procures electricity at advantageous wholesale market times, and charges members only a small per-kilowatt-hour aggregation fee rather than a membership fee. TCAP also provides access to legal, energy, legislative, and marketing consultants, a member billing portal, monthly educational webinars, and advocacy on deregulated electricity issues before the Texas legislature.

Product overview

Texas Coalition for Affordable Power (TCAP) is a nonprofit electricity aggregation organization for Texas political subdivisions, not a traditional software product company. TCAP operates as a member-run coalition that aggregates electricity purchasing power for over 160 cities and political subdivisions. The core offering consists of electricity aggregation services using a Strategic Buying Program (SBP) that purchases energy at advantageous wholesale market times. Supporting services include a member Energy Portal for billing data access, personalized TCAP billing portal, educational resources (How to Buy Electricity Primer, Is Solar Right for Your City?, Energy Conservation 101, So What Goes Into My Energy Price?), monthly webinars on energy topics, case studies demonstrating savings, and an annual Energy Conservation Awards Program. TCAP provides expert consultants in energy, legal, and legislative matters to assist member cities with contract negotiations, regulatory reporting, and billing dispute resolution.

Differentiator

Problem solved

Functional benefit

Products and services

• Electricity Aggregation Membership Coalition membership that aggregates the electricity load of Texas political subdivisions (cities, counties, water districts, school districts, housing authorities, river authorities, airports, and port authorities) to negotiate volume discounts and transparent contract terms with retail electric providers on behalf of member entities.
• Strategic Buying Program (SBP) A wholesale-market timing purchasing strategy in which electricity is bought whenever wholesale prices are most advantageous, removing the risk premiums and carrying charges typically embedded in traditional long-term fixed-price contracts for member subdivisions.

Named customers8 records

Segments1 record

Ideal customer profiles1 record

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature2 records

Partnerships

Six partnerships are on record, tiered supporting and core.

• Enel XsupportingStrategic or Co-development Partner · 1 January 2023Enel X partnered with City of Sugar Land for energy conservation efforts, helping the city save $60,000 in the first year through demand management during peak periods.
• CenterPoint EnergysupportingStrategic or Co-development Partner · 1 January 2023CenterPoint collaborated with Sugar Land on energy conservation programs, part of the city's comprehensive demand management strategy.
• VoltussupportingStrategic or Co-development Partner · 1 January 2023Voltus worked with City of Sugar Land on energy management and demand response initiatives contributing to the city's $60,000 first-year savings.
• Gexa EnergycoreTechnology or IntegrationGexa Energy is TCAP's retail electric provider (REP) partner, providing electricity supply to TCAP's member cities. TCAP's three-party contract structure includes TCAP, the REP, and a wholesale provider to ensure favorable pricing and customer service.
• OncorsupportingTechnology or IntegrationOncor provides energy efficiency programs for Texas cities. The City of Hurst received a $25,000 rebate through Oncor's efficiency programs.
• Lloyd Gosselink (Thomas Brocato)coreImplementation/ SI/ Consulting PartnerThomas Brocato from Lloyd Gosselink serves as TCAP's Legal Consultant, providing regulatory guidance and representing TCAP before the Public Utility Commission.

Scale indicators5 records

Recent moves7 records

Expansion highlights4 records

Broad incumbents

• Direct Energy:
• NRG Energy: NRG Energy is a large US competitive retail electricity provider (parent of Reliant and Direct Energy) serving residential, commercial, and government customers in Texas and other deregulated markets. It frequently bids against TCAP-negotiated contracts for large municipal accounts.
• Vistra Corp: Vistra is one of the largest Texas electricity retailers (TXU Energy, Dynegy, Homefield) and a major competitive supplier in ERCOT. It serves many of the same Texas municipal customers TCAP targets and competes on price in the same RFP processes.
• Constellation (formerly Exelon Energy): Constellation is one of the largest US competitive retail electricity suppliers, serving municipalities, businesses, and institutions across multiple deregulated markets. It competes with TCAP for the same Texas political-subdivision RFPs but as part of a much broader portfolio of generation, retail supply, and large-C&I services.
• ENGIE Resources: ENGIE Resources is a major retail electricity provider serving commercial, industrial, and government customers in deregulated US markets including Texas. It competes with TCAP-aggregated contracts for Texas municipal load at scale and offers broader energy management services.

Direct peers

• APPI Energy: APPI Energy is an energy consulting and procurement firm that aggregates energy purchasing on behalf of public-sector entities, including cities, counties, and schools. It is the closest for-profit analog to TCAP, though it operates nationally and across multiple fuels rather than Texas electricity alone.
• Good Energy: Good Energy is an energy broker and procurement advisor focused on public-sector and large commercial clients, helping them navigate deregulated electricity markets. It overlaps with TCAP on government electricity procurement, though it serves multiple states and is commission-based rather than nonprofit.

Market position

Weaknesses5 records

Competitive moat5 records

Key risks6 records

Key highlights6 records

Customer concentration

• LinkedInlinkedin.com/company/texas-coalition-for-affordable-power

Revenue estimate

Valuation estimate

Number of profiles

Profiles6 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Texas Coalition for Affordable Power