HomeMy WebLinkAbout07-1259 08-14-2007RESOLUTION NO. 07 -1259
A RESOLUTION OF THE CITY OF EULESS, TEXAS, AUTHORIZING
THE CITIES AGGREGATION POWER PROJECT, INC. TO NEGOTIATE
ON BEHALF OF THE CITY FOR THE PURCHASE OF RENEWABLE
ENERGY CREDITS EFFECTIVE FOR THE 2008 CALENDAR YEAR;
AUTHORIZING THE CITY MANAGER TO SIGN THE STANDARD FORM
REC ACCOUNT AGREEMENT WITH THE ELECTRIC RELIABILITY
COUNCIL OF TEXAS, INC. ( "ERCOT ") FOR THE 2008 CALENDAR
YEAR; AUTHORIZING THE CITY MANAGER TO REGISTER THE
CITY'S OWNERSHIP OF RENEWABLE ENERGY CREDITS WITH THE
ELECTRIC RELIABILITY COUNCIL OF TEXAS; AND COMMITTING TO
BUDGET FOR THE PURCHASE OF RENEWABLE ENERGY CREDITS
TO BE EFFECTIVE FOR THE 2008 CALENDAR YEAR.
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 100 members in the competitive retail market; and
WHEREAS, the City is under contract to secure its electric energy needs
through CAPP at least through December 31, 2008; and
WHEREAS, the CAPP Board has investigated options to allow CAPP members
to voluntarily incorporate support for renewable energy into their overall energy portfolio
through the purchase of Renewable Energy Credits (RECs); and
WHEREAS, the cost of RECs voluntarily purchased by the City will be in
addition to the contract price for energy paid by the City because the purchase of RECs
does not offset the member's cost of electricity but is instead a contribution toward
increasing the state's renewable resources; and
WHEREAS, RECs make it possible for the City to monetarily support renewable
energy by enhancing the economic performance of renewable generation and
demonstrating demand for renewable energy projects, which will ideally attract
additional investment in such projects; and
WHEREAS, RECs help ensure the new renewable energy capacity is built in the
most efficient and economical manner; and
WHEREAS, additional renewable energy capacity in Texas protects and
enhances the Texas environment for the benefit of all current and future Texans; and
WHEREAS, allocating $3,067 for the purchase of RECs is approximately
equivalent to 5% of the City's total annual use; and
WHEREAS, it is appropriate to designate City Manager to execute a contract for
the purchase of RECs for the 2008 calendar year and to register the purchase of RECs
with the REC program administrator, the Electric Reliability Council of Texas (ERCOT);
and
WHEREAS, purchasing RECs for calendar year 2008 will entail a lump sum
cash payment by the City when the RECs are purchased, which is likely to occur
sometime after October 1, 2007, and before December 31, 2007.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF EULESS, TEXAS:
SECTION 1
THAT the City desires to support the renewable energy market in Texas by
voluntarily purchasing RECs for the 2008 calendar year equal to an amount not to
exceed $3,067 and authorizes CAPP consultants to negotiate the purchase of RECs on
the City's behalf.
SECTION 2
THAT the City appoints City Manager to execute a contract for the purchase of
RECs for the 2008 calendar year and to register the purchase with ERCOT, the
statewide administrator of the RECs program.
SECTION 3
THAT a copy of the resolution shall be sent to Geoffrey M. Gay, legal counsel to
CAPP.
APPROVED AND ADOPTED at a regular meeting of the Euless City Council on
the 14th day of August, 2007, by a vote of 7 ayes, 0 nays, and 0
abstentions.
APPROVED:
Mary Lib aleh, Mayor
R e s o l u t i Ne ®-7- 1259, Page Z,ef2
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