HomeMy WebLinkAboutResolution No. 04-63 CITY OF THE COL~).~I,¥,..i.--
RESOLUTION NO.
A RESOLUTION OF THE CITY OF THE COLONY, TEXAS,
AUTHORIZING THE CITIES AGGREGATION POWER PROJECT,
INC. TO NEGOTIATE AN ELECTRIC SUPPLY AGREEMENT FOR
DELIVERIES OF ELECTRICITY EFFECTIVE JANUARY 1, 2005;
AUTHORIZING CAPP TO ACT AS AN AGENT ON BEHALF OF THE
CITY TO ENTER INTO A CONTRACT FOR ELECTRICITY; AND
AUTHORIZING THE CHAIRMAN OF CAPP TO EXECUTE AN
ELECTRIC SUPPLY AGREEMENT FOR DELIVERIES OF
ELECTRICITY EFFECTIVE JANUARY 1, 2005.
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, 2003 and 2004 resulting in significant savings
off of the Price to Beat PTB) rate for its members; and
WHEREAS, preliminary information provided to the CAPP Board indicates that
entering into a wholesale power contract, as distinct from a retail contract, effective
January 1, 2005, may provide the greatest potential for savings for CAPP members
over the regulated PTB rate; and
WHEREAS, potential wholesale power providers desire to execute a contract with
one, and only one, entity rather than have unique contracts for each CAPP member;
and
WHEREAS, CAPP believes that the pricing opportunity window for favorable 2005
deliveries under either a wholesale er retail agreement will be short-lived (in the
September to mid-November time period) and that CAPP must be able to commit
contractually to prices within a 24-hour period in order to lock-in favorable prices
regardless of whether CAPP continues its historic practice of retail agreements or
enters the wholesale market; and
WHEREAS, experiences in contracting for 2002-2004 demonstrated that Retail
Electric Providers demand immediate response to an offer and may penalize delay
with higher prices; and
WHEREAS, it is necessary for the City to contract for a supply of electricity for 2005
or at least partially revert to PTB rates; and
WHEREAS, CAPP's current delivered energy prices provide savings when
measured against the PTB rate, and PTB rates will likely continue to remain higher
than prices CAPP can achieve on behalf of the City; and
WHEREAS, wholesale suppliers demand assurance that CAPP will pay for all
contracted Icad; and
WHEREAS, the City of The Colony needs to assure CAPP that it will budget for
energy purchases in 2005 and honor its commitments to purchase power for its
electrical needs in 2005 through CAPP.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF THE
COLONY, TEXAS:
Section 1:
That the CAPP Board and its consultants and advisors are agents authorized
to negotiate for the City's electricity needs as a member of CAPP and to evaluate
wholesale power supply contract options for 2005 as compared to a retail electric
delivery contract for 2005 and, if feasible, 2006.
Section 2:
That the Chairman of CAPP is hereby authorized to sign an electric power
agreement for the City pursuant to the contract approved and recommended by the
CAPP Board of Directors within 24 hours of said approval and recommendation.
Section 3:
That the City wilf budget and approve funds necessary to pay electricity costs
proportionate to the City's Icad under the supply agreement (whether wholesale or
retail) arranged by CAPP and signed by the Chairman of CAPP for the City.
Section 4:
That 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.
,PRE. SEN/TED AND PASSED O.N THIS----/~' day of~," 2004,
by a vole or /~ ayes and ~ nays at a regular mee~dog ~'f the City
Council of The '~'1~y of The C°l°ny'/Texa%%,L~..~'X '~) / "~
Jo~ Dillara, Ma~or
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