HomeMy WebLinkAbout08-1295 10-28-2008RESOLUTION NO. 08 -1295
A RESOLUTION OF THE CITY OF EULESS, TEXAS, AUTHORIZING
THE CITIES AGGREGATION POWER PROJECT, INC. (CAPP), TO
NEGOTIATE AN ELECTRIC SUPPLY AGREEMENT FOR DELIVERIES
OF ELECTRICITY AND NECESSARY, RELATED SERVICES
EFFECTIVE JANUARY 1, 2009; AUTHORIZING CAPP TO ACT AS AN
AGENT ON BEHALF OF THE CITY TO ENTER INTO A CONTRACT
FOR ELECTRICITY; APPROVING CAPP CONTRACTING WITH FPL
ENERGY AND DIRECT ENERGY AND AUTHORIZING THE CHAIRMAN
OF CAPP TO EXECUTE AN ELECTRIC SUPPLY AGREEMENT FOR
DELIVERIES OF ELECTRICITY EFFECTIVE JANUARY 1, 2009;
COMMITING TO BUDGET FOR ENERGY PURCHASES AND HONOR
THE CITY'S COMMITMENTS TO PURCHASE POWER THROUGH
CAPP FOR ITS ELECTRICAL NEEDS BEGINNING JANUARY 1, 2009,
THROUGH DECEMBER 31, 2013.
WHEREAS, the City of Euless, Texas, is a member of Cities Aggregation Power
Project, Inc. (CAPP), a nonprofit political subdivision corporation dedicated to securing
electric power for its 111 political subdivision members in the competitive retail market;
and
WHEREAS, CAPP negotiated favorable contract terms and a reasonable
commodity price for delivered electricity since 2002 resulting in significant savings for its
members; and
WHEREAS, the City's current contract for power expires December 31, 2008;
and
WHEREAS, CAPP members must secure power supplies for 2009 or revert to
high price standard contracts and independently shop for a power contract; and
WHEREAS, the CAPP Board of Directors is currently considering indicative retail
energy prices that point to favorable pricing for the five year period ending December
31, 2013; and
WHEREAS, 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
2009 deliveries will be short -lived 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 providers demand immediate response to an offer and may penalize delay with
higher prices; and
WHEREAS, aggregated rates contracted during favorable pricing periods are
likely to be lower than prices obtained by the City contracting individually during the
same time period; and
WHEREAS, suppliers demand assurance that CAPP will pay for all contracted
load; and
WHEREAS, the City needs to assure CAPP that it will budget for energy
purchases and honor its commitments to purchase power for its electrical needs
through CAPP for the period beginning January 1, 2009, and extending through
December 31, 2013; and
WHEREAS, CAPP intends to continue to contract with both FPL Energy (power
supply) and Direct Energy (billing, administrative and other customer services); and
WHEREAS, the current contractual relationships between CAPP and FPL
Energy and Direct Energy have been beneficial and cost effective for CAPP members
and the City.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF EULESS, TEXAS:
SECTION 1
THAT the CAPP Board and its consultants and advisors are agents authorized to
negotiate for the City's electric power needs as a member of CAPP and to contract for
the electric power supply and related, necessary services for the City for a term to begin
January 1, 2009, and extending up to December 31, 2013.
SECTION 2
THAT the City approves CAPP contracting with FPL Energy and Direct Energy
for the supply of electric power and related, necessary services for the City for a term to
begin January 1, 2009, and extending up to December 31, 2013.
SECTION 3
THAT the Chairman of CAPP is hereby authorized to sign a Commercial Electric
Service Agreement ( "CESA ") for the City pursuant to the contract approved and
recommended by the CAPP Board of Directors within 24 hours of said approval and
recommendation.
Resolution No. 08 -1295, Page 2 of 3
SECTION 4
THAT the City will budget and approve funds necessary to pay electricity costs
proportionate to the City's load under the supply agreement arranged by CAPP and the
CESA signed by the Chairman of CAPP on behalf of the City for the term beginning
January 1, 2009, and extending up to December 31, 2013.
SECTION 5
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 CAPP.
APPROVED AND ADOPTED at a regular meeting of the Euless City Council on
the 28th day of October, 2008, by a vote of 6 ayes, o nays, and 0
abstentions.
APPROVED:
ATTEST:
i S
Susan Crim, T' C, City Secretary
Resolution No. 08 -1295, Page 3 of 3