HomeMy WebLinkAboutCity Council Resolutions (R-04-2432)-09/07/2004
RESOLUTION R-04-2432
A RESOLUTION OF THE CITY OF COLLEYVILLE TEXAS, AUTHORIZING THE
CITIES AGGREGATION POWER PROJECT, INC., TO NEGOTIATE AN ELECTRIC
SUPPLY AGREEMENT FOR DELIVERIES OF ELECTRICITY EFFECTIVE JANUARY
1, 2005; AUTHORIZING THE MAYOR TO SIGN A CONTRACT WITH CAPP FOR THE
CITY OF COLLEYVILLE'S 2005 ELECTRICITY NEEDS; AND COMMITTING TO
BUDGET FOR ENERGY PURCHASES IN 2005 AND TO HONOR THE CITY OF
COLLEYVILLE'S COMMITMENTS TO PURCHASE POWER FOR ITS ELECTRICAL
NEEDS IN 2005 THROUGH CAPP
WHEREAS, the City of Colleyville 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 or 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
Resolution R-04-2432
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WHEREAS, wholesale suppliers demand assurance that CAPP will pay for all
contracted load; and
WHEREAS, the City of Colleyville 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 CAPPo
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
COLLEYVILLE, TEXAS:
Sec. 1.
That the CAPP Board and its consultants and advisors will evaluate for the
City wholesale power supply contract options for 2005 as compared to a
retail electric delivery contract for 2005 and, if feasible, 2006.
Sec. 2.
That the City will execute a contract with CAPP that permits the CAPP
Board and its consultants and advisors to negotiate and sign the 2005
electric power agreement for the City's electricity needs as a member of
CAPP, and commits its 2005 load pursuant to the contract recommended
and approved by the CAPP Board of Directors.
Sec. 3.
That the City will budget and approve funds necessary to pay electricity
costs proportionate to the City's load under the supply agreement
(whether wholesale or retail) arranged by CAPPo
Sec. 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 CAPPo
I
I
I AND IT IS SO RESOLVED.
PASSED BY A VOTE OF -5 0 NAYS AND D ABSTENTIONS
ON THIS THE 1M DAY OF 2004.
ATTEST:
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Cynthia Singleton, TRMC
City Secretary