HomeMy WebLinkAboutResolution No. 03-26 RESOLUTION NO. ~7~j~
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, 2004; AUTHORIZING ELIGIBLE
DESIGNEES TO INCLUDE THE CHAIRMAN OF CAPP
WHEREAS, the City of The Colony, Texas (City)is a member of Cities
aggregation Power Project, Inc. (CAPP), a nonprofit 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 and 2003 for
its members; and
WHEREAS, CAPP anticipates preserving current contract terms and
achieving commodity prices in a contract for a 12 to 24
month period effective January 1, 2004 that continue to
produce savings over the regulated price to beat (PTB); and
WHEREAS, CAPP believes that the pricing opportunity window for
favorable 2004-2005 deliveries will be short-lived (in the
October to mid-November time period) 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, experiences in contracting for 2002-2003 demonstrated that
Retail Electric Providers demand immediate response to an
offer and may penalize delay with higher prices; and
WHEREAS, the deregulated electric market is complex, likely to penalize
those unaware of its transmission constraints and likely to
reward those who can improve the size and shape of the
particular load to be served and the City benefits from jointly
shared experience and collective purchasing power through
CAPP; and
WHEREAS, it is necessary for the City to contract for a supply of
electricity for 2004 or at least partially revert to PTB rates;
and
WHEREAS, CAPP's current delivered energy prices provide savings
when measured against PTB, and PTB rates likely will
continue to remain higher than pieces CAPP can achieve on
behalf of the City.
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 designee may include the Chairman of CAPP. The
contract may be for a 12 to 24 month time frame.
II.
A copy of the resolution shall be sent to Mary Bunkley with the City
Attorney's office in Arlington and Geoffrey M. Gay, legal counsel to CAPP, before
October 8, 2003.
PRE.SENTED AND PASSED on this 15th day of September, 2003, by a
vote of ~. ayes and .~' nays at a regular meeting of the City Council
of the City of The Colony, T~xas. (~.~~. ~
Attest: J~,,n Ddlard, ~-a~r-
Patti A. Hicks, City Secretary