HomeMy WebLinkAbout10-1353 12-14-2010RESOLUTION NO. 10 -1353
A RESOLUTION OF THE CITY OF EULESS, TEXAS, AUTHORIZING
THE CITIES AGGREGATION POWER PROJECT, INC. (CAPP) TO
NEGOTIATE AN EXTENSION TO THE CURRENT ELECTRIC SUPPLY
AND NECESSARY RELATED SERVICES AGREEMENT WITH NEXT
ERA FOR A FIXED PRICE PER KWH THAT IS LOWER THAN
CONTRACT RATES FOR 2011-2013, SAID EXTENSION TO CONTINUE
UNTIL DECEMBER 31, 2018; AUTHORIZING CAPP TO ACT AS AN
AGENT ON BEHALF OF THE CITY TO ENTER INTO A CONTRACT
FOR ELECTRICITY; AUTHORIZING THE CHAIRMAN OF CAPP T;O
EXECUTE AN EXTENSION TO THE CURRENT ELECTRIC SUPPLY
AGREEMENT FOR DELIVERIES OF ELECTRICITY EFFECTIVE
JANUARY 1, 2011, OR AS SOON AFTER FINALIZATION OF A
CONTRACT AS POSSIBLE; COMMITTING TO BUDGET FOR ENERGY
PURCHASES AND TO HONOR THE CITY'S COMMITMENTS TO
PURCHASE POWER THROUGH CAPP FOR ITS ELECTRICAL NEEDS
THROUGH DECEMBER 31, 2018.
WHEREAS,
Power
Project
Inc..
the City' of
( "CAPP ),
Euless, Texas
(City) is
a
member of Cities
Aggregation
a
nonprofit political
subdivision
securing electric power for its
1
02 political' subdivision
corporation
members
dedicated to
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
embers;
and
WHEREAS,
the City's
current contract fo
power with
Next Er
nged through
CAPP! expires December
31,
2013;
and
WHEREAS, the
CAPP
Board of Directors
Is
currently
considering a blend
nd
extend contract with Next
prices under the current contract
energy through December 31,', 201
Era with
indicative retail
energy prices
that will reduce the
for the next three
8; and
years
and extend
a fixed
price for
WHEREAS, the current contract is a master agreement between CAPP and
Next Era
endorsed
by
contract with
individ
ual CAPP members;
and
WHEREAS,
CAPP
must be
able to commit
contractually
to prices in
a
blend and
extend contract amendment
within a
24 -hour
period in
order to lock-in favorable prices
and
WHEREAS,
experiences in
contracting
for CAPP
load
since
2002 demonstrated
that
h
providers
demand
immediate
igher prices; and
response
to
an
offer
and
may
penalize delay
with
Toad
WHEREAS, suppliers' demand
and
assul
nce tha
CAPP will pay
for a
cony
acted
WHEREAS, the
and honor
City must
assure CAPP
that
It will
its commitments
to
purchase power
the period
for
is
budget for energy purchases
electrical needs through CAPP for
beginning January 1, 2011, and extending' through December 31,' 2018;' and
WHEREAS, CAPP
and Direct Energy
intends
to
continue to contract with Next
Era
(billing,
administrative
and other customer
(power
supply)
services); and
WHEREAS, the, current contractual relationships, between CAPP and Next Era
and Direct
Energy
have
been
beneficial and cost effective
for
CAPP
members
and
the
City;
NOW THEREFORE, BE IT RESO
OF EULESS, TEXAS,
VED BY THE 'CITY COUNCI
OF THE CITY
THAT:
ECTION 1
The CAPP Board and its con
n _ott
ultants and advisors are agen
For the City *s' electric
power
needs
as a
member of
s authorized to
CAPP
and
extend the
nt supply
agreement through
December 31, 201
8,
SECTION 2
The
supply
of
City approves
electric
January 1, 2011
to December
CAPP
extending
its
curren
contract
with
Next
Era for the
power, and related, necessary services for the City for a term to begin
or as soon after finalization of a contract as possible and extending up
31,' 2018, so long as the extension results in savings over the current
2011 -2013 and results in fixed prices through December 31 2018.
contract term of
SECTION 3
The
Chairman of CAPP is hereby authorized to sign
Supply Agreement (UCESA ")'
for the
a
City pursuant to the
Commercial Electricity
contract approved and
mmended by
the
CAPP
Board
of,
Directors within
24
hours
of
mmendation,
provided
that
the
ess than the current contract price
said approval and
energy price to be paid per kWh in 2011 -2013 is
for 2011 -2013 resulting in savings for the City and
that
the fixed
for
the period
20
11 -20
13
will
continue through December
31,
2018
SECTION 4
The
City
proportionate to
CESA
signed
will budget and approve funds necessary to pay
the City's load under the supply agreement arranged by CAPP
Chairman of
electricity costs
by the
CAPP on behalf of the City , for the term
and
the
beginning
January 1, 2011
to December 31,
or as
soon
after
finalization
of a
contract as
possible
and extending up
2018.
IT No.
10-1353
Page
2
SECTION
A
copy of the resolution shall be , sent to Mary Bun ley wlth the City At#{}
eyes
office In Arlington and Geoffrey NI. Oay, legal counsel to CAPPs
APPROVED AND ADOPTED at a regular meeting of the 'Euless City Council on
the 14th day of December 2010 by a vote of 7 eyes and o nays, and
abstentions.
APPROVED:
ATTEST:
Resolution t . ?0 -f Page