HomeMy Public PortalAboutResolution No. 182-02 08-27-2002 . RESOLUTION NO. 182-02
A RESOLUTION OF THE CITY OF RICHLAND HILLS,
TEXAS, AUTHORIZING THE MAYOR 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 Richland Hills, 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, LAPP negotiated favorable contract terms and a reasonable commodity price for
delivered electricity in 2002 for its members; and,
WHEREAS, LAPP 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 LAPP; 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.
•
• BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF RICxLAND HILLS ,
TEXAS:
I.
That MAYOR NELDA S. STRODER 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 fora 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 this 27th day of August , 2002, by a vote
of 3 ayes and o nays at a regular meeting of the City Council of the City of
Richland Hills ,TeXaS.
M yor
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ATTEST:
r_ a
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