HomeMy WebLinkAboutCity Council Resolutions (R-06-2712)-06/20/2006
RESOLUTION R-06-2712
A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF COLLEYVILLE,
TEXAS AUTHORIZING THE CITIES AGGREGATION POWER PROJECT, INC.
(CAPP) TO NEGOTIATE AN ELECTRIC SUPPLY AGREEMENT FOR
DELIVERIES OF ELECTRICITY EFFECTIVE JANUARY 1, 2007;
AUTHORIZING THE CITY MANAGER TO SIGN A CONTRACT WITH CAPP
FOR THE CITY OF COLLEYVILLE'S 2007 AND 2008 ELECTRICITY NEEDS;
COMMITTING TO BUDGET FOR ENERGY PURCHASES IN 2007 AND 2008
AND TO HONOR THE CITY OF COLLEYVILLE'S COMMITMENTS TO
PURCHASE POWER FOR ITS ELECTRICAL NEEDS IN 2007 AND 2008
THROUGH CAPP
WHEREAS, the City of Colleyville ("City") is a member of Cities Aggregation Power
Project, Inc. ("CAPP"); and
WHEREAS, CAPP negotiated favorable contract terms and a reasonable commodity
price for delivered electricity since 2002 resulting in significant savings off
of the Price to Beat (PTB) rate for its members; and
WHEREAS, the CAPP Board and CAPP consultants are continuing to investigate long
term contracting options, CAPP members must secure short term (2007
and 2008) power supplies or revert to high price standard contracts and
independently shop for a power contract; and
WHEREAS, experience gained by the CAPP Board indicates that entering into a
wholesale power contract, as distinct from a retail contract, effective
January 1, 2007 may provide for greatest potential savings for CAPP
members and facilitate an ultimate transition to fixed price long term
agreements; and
WHEREAS, potential wholesale power providers desire to execute a contract with one
entity rather than have unique contracts for each CAPP member; and
WHEREAS, CAPP believes that the pricing opportunity window for favorable 2007
deliveries under either a wholesale or retail agreement will be short-lived
(in the late spring - early summer 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; and
WHEREAS, experiences in contracting for CAPP load since 2002 demonstrated that
Retail Electric Providers demand immediate response to an offer and may
penalize delay with higher prices; and
WHEREAS, CAPP's current delivered energy prices provide savings when measured
against the PTS rate, and aggregated rates contracted during favorable
Resolution R-06-2712
Page 2 of 2
pnclng periods are likely to be lower than prices obtained by the City
contracting individually during the same time period; and
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 2007 and 2008 and honor its commitments to purchase
power for its electrical needs in 2007 and 2008 through CAPP;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
COLLEYVILLE, TEXAS:
Sec. 1
Sec. 2
Sec. 3
Sec. 4
THAT the CAPP Board and its consultants and advisors will evaluate for
the City wholesale power supply contract options for 2007 and 2008 as
compared to a retail electric delivery contract for 2007 and, if feasible,
2008.
THAT the City Manager is authorized to execute a contract with CAPP
that permits the CAPP Board and its consultants and advisors to negotiate
and sign 2007 and/or 2008 electric power agreements for the City's
electricity needs as a member of CAPP and commit the City's 2007 and
2008 load pursuant to the contract recommended and approved by the
CAPP Board of Directors.
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 CAPP and signed by the
Chairman of CAPP for the City.
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
AND IT IS SO RESOLVED.
PASSED BY A VOTE OF 7
ON THIS THE ~~ DAY OF
AYES, C/ NAYS AND ~ ABSTENTIONS
~ 2006.
.I L. CITY OF COLLEYVILLE
~ i-P~~ ~
David Ke';y -c-J )""
Mayor
Cynthia Singleton, TRMC
City Secretary