HomeMy WebLinkAboutCity Council Resolutions (R-02-2039)-10/01/2002
RESOLUTION R-02-2039
AUTHORIZATION 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 Colleyville, Texas (City) is a member of the 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 a favorable commodity price and contract terms for the
delivery of electricity in 2002 for its members; and
WHEREAS, CAPP anticipates preserving current contract terms and achieving
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 the 2001 procurement process 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; and
WHEREAS, the City benefits from the 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;
and
WHEREAS, CAPP's current delivered energy prices provide savings when measured
against "price-to-beat" rates, and "price-to-beat" rates will likely be
increased before the end of the year, thereby increasing savings for
CAPP members.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
COLLEYVILLE, TEXAS:
Resolution R-02-2039
Page 2 of 2
Sec. 1.
THAT the Mayor 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 timeframe.
Sec. 2.
THAT a copy of the resolution shall be sent to the CAPP Secretary-
Treasurer, Mary Bunkley, with the Arlington City Attorney's Office, Post
Office Box 90231, Arlington, Texas, 76004-3231.
AND IT IS SO RESOLVED.
PASSED BY A VOTE OF
ON THIS THE / ..sf"
ATTEST:
.tI AYES, D NAYS, AND 0 ABSTENTIONS
DAY OF Ocjn6-eA..J 2002.
CITY OF COLLEYVILLE:
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Cynthia Singleton, TRMC
City Secretary
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Mayor