HomeMy WebLinkAbout02-1131 08-27-2002RESOLUTION NO. 02 -1131
A RESOLUTION OF THE CITY OF EULESS,
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, 2003.
WHEREAS, the City of Euless, 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 for its members;
and
WHEREAS, CAPP anticipates preserving current contract terms and achieving
slight 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 2001 -2002 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, the City benefits
from 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 or at least partially revert to price to beat rates (PTB); and
WHEREAS, CAPP's current delivered energy prices provide savings when
measured against PTB, and PTB rates likely will be increased
before the end of the year.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF EULESS, TEXAS:
i.
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 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 before September 30, 2002.
PRESENTED AND PASSED ON FIRST AND FINAL READING on the 27th day
of August, 2002, by a vote of 7 ayes, 0 nays, and 0 abstentions at a
regular meeting of the City Council of the City of Euless, Texas.
APPROVED:
Jet (ti, t Le ch,
Mary Lib Sheh, Mayor
ATTEST:
Resolution No. 02 -1131, Page 2 of 2