HomeMy WebLinkAboutResolution No. 02-31 RESOLUTION NO. ~o9-.- .~ ~
A RESOLUTION OF THE CITY OF THE COLONY, TEXAS
AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO
EXECUTE AN ELECTRIC SUPPLY AGREEMENT PURSUANT TO
THE CONTRACT TO BE SIGNED BY CITIES AGGREGATION
POWER PROJECT, INC. FOR DELIVERIES OF ELECTRICITY
EFFECTIVE JANUARY 1, 2003.
WHEREAS, the City of The Colony, Texas (City) is a member of Cities
Aggregation Power Project, Inc. (CAPP), a non-profit political
Subdivision corporation dedicated to securing electric power
For its more than 80 members in the competitive retail market;
and;
WHEREAS, CAPP negotiated favorable contract terms and a reasonable
Commodity price for delivered electricity in 2002 for its
members; and
WHEREAS, CAPP anticipates preserving current contract terms and
achieving slight improvement in current commodity prices
in a contract for 2003; and
WHEREAS, CAPP believes that the pricing opportunity window for
favorable 2003 deliveries will be short-lived and that CAPP
members must be able to commit contractually to prices
within a 24-hour period in order to lock-in favorable prices;
and
WHEREAS, experience during 2001-2002 has demonstrated that Retail
Electric Providers demand immediate response to an offer; and
WHEREAS, the deregulated electric market is complex, likely to penalize
those unaware of its constraints and likely to reward those
who can improve the size and shape of a particular load, the
City benefits fi.om jointly shared experience and collective
purchasing power arranged through CAPP; and
WHEREAS, it is necessary for the City to contract for a supply of
electricity in 2003 or at least partially revert to price to beat
rates (PTB); and
WHEREAS, CAPP's current delivered energy prices provide savings when
measured against PTB and PTB rates likely will be increased
before the end of the year.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
THE COLONY, TEXAS:
That the City Manager or his designee is hereby authorized to sign an
electric power agreement pursuant to the contract approved and
recommended by the CAPP Board of Directors within 24 hours of said
approval and recommendation. The contract may be for a 12 to 24 month
time frame.
A copy of the resolution shall be sent to Mary Bunkley with the City
Attorney's office in Arlington before September 30, 2002.
PRESENTED AND PASSED on this 9th day of September, 2002, by
a vote of '~ ayes O nays at a regular meeting of the City Council
of the City of The Colony, Texas.
Mayor Bemetta Henville-Shannon
Patti A. Hicks, City Secretary