HomeMy WebLinkAbout11-1362 04-26-2011RESOLUTION NO. 11 -1362
A RESOLUTION OF THE CITY OF EULESS, TEXAS, AUTHORIZING
THE TEXAS COALITION FOR AFFORDABLE POWER (TCAP) TO
NEGOTIATE AN EXTENSION TO THE CURRENT ELECTRIC SUPPLY
AND NECESSARY RELATED SERVICES AGREEMENT WITH
NEXTERA FOR A FIXED PRICE PER KWH THAT IS LOWER THAN
CONTRACT RATES FOR 2011 -2013, SAID EXTENSION TO CONTINUE
UNTIL DECEMBER 31, 2017; AUTHORIZING TCAP TO ACT AS AN
AGENT ON BEHALF OF THE CITY TO ENTER INTO A CONTRACT
FOR ELECTRICITY; AUTHORIZING THE PRESIDENT OF TCAP TO
EXECUTE AN EXTENSION TO THE CURRENT ELECTRIC SUPPLY
AGREEMENT FOR DELIVERIES OF ELECTRICITY EFFECTIVE JULY
1, 2011; COMMITTING TO BUDGET FOR ENERGY PURCHASES AND
TO HONOR THE CITY'S COMMITMENTS TO PURCHASE POWER
THROUGH TCAP FOR ITS ELECTRICAL NEEDS THROUGH
DECEMBER 31, 2017.
WHEREAS, the City of Euless, Texas (City) is a member of Texas Coalition for
Affordable Power (TCAP), a nonprofit political subdivision corporation dedicated to
securing electric power for its 159 political subdivision members in the competitive retail
market; and
WHEREAS, TCAP 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 with NextEra arranged through
TCAP, as successor to Cities Aggregation Power Project, expires December 31, 2013;
and
WHEREAS, the TCAP Board of Directors has authorized a blend and extend
contract with NextEra Energy Power Marketing, LLC for retail energy prices that will
reduce the prices under the current contract through December 2013 and extend a fixed
price for energy through December 31, 2017; and
WHEREAS, the current contract is a master agreement between TCAP and
NextEra endorsed by contract between TCAP's designated Retail Electric Provider and
individual TCAP members; and
WHEREAS, TCAP 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 in the deregulated electric market since
2002 demonstrate that providers demand immediate response to an offer and may
penalize delay with higher prices; and
WHEREAS, suppliers demand assurance that TCAP will pay for all contracted
load; and
WHEREAS, the City must assure TCAP that it will budget for energy purchases
and honor its commitments to purchase power for its electrical needs through TCAP for
the amended period beginning July 1, 2011, and extending through December 31,
2017; and
WHEREAS, TCAP intends to continue to contract with NextEra (power supply) at
least through December 31, 2017, and Direct Energy (billing, administrative and other
customer services) at least through December 31, 2013; and
WHEREAS, the current contractual relationships between TCAP and NextEra
and Direct Energy have been beneficial and cost effective for TCAP members and the
City;
THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
EULESS, TEXAS, THAT:
SECTION 1.
The TCAP Board and its consultants and advisors are agents authorized to
negotiate for the City's electric power needs as a member of TCAP and extend the
current supply agreement through December 31, 2017.
SECTION 2.
The City approves TCAP extending its current contract with NextEra for the
supply of electric power and related, necessary services for the City for a term to begin
July 1, 2011 and extending through December 31, 2017, so long as the extension
results in savings over the current contract prices.
SECTION 3.
The President of TCAP is hereby authorized to sign a Commercial Electricity
Supply Agreement (CESA) for the City pursuant to the contract approved and
recommended by the TCAP Board of Directors within 24 hours of said approval and
recommendation, provided that the energy price to be paid per kWh in the remainder of
2011, and through December 31, 2013, is less than the current contract prices for 2011-
2013 resulting in savings for the City and that a fixed price for electricity for the period
January 1, 2014, through December 31, 2017, will be less than the current price
effective on January 1, 2011.
SECTION 4.
The City will budget and approve funds necessary to pay electricity costs
proportionate to the City's load under the supply agreement arranged by TCAP and the
Resolution No. 11 -1362, Page 2 of 3
CESA signed by the President of TCAP on behalf of the City for the term beginning July
1, 2011 and extending to December 31, 2017.
SECTION 5.
A copy of the resolution shall be sent to Mary Bunkley with the City Attorney's
office in Arlington, Texas and Geoffrey M. Gay, legal counsel to TCAP.
APPROVED AND ADOPTED at a regular meeting of the Euless City Council on
the 26th day of April 2011, by a vote of 5 ayes and 0 nays, and o
abstentions.
APPROVED:
Saleh, Mayor
ATTEST:
Pisan Crim, ''MC, City Secretary
Resolution No. 11 -1362, Page 3 of 3