HomeMy Public PortalAboutResolution No. 205-03 09-23-2003 • RESOLUTION NO. 205-03
A RESOLUTION OF THE CITY OF RICHLAND HILLS, TEXAS,
AUTHORIZING THE MAYOR OR A DESIGNEE 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, 2004.
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, CAPP negotiated favorable contract terms and a reasonable commodity
price for delivered electricity in 2002 and 2003 for its members; and
WHEREAS, CAPP anticipates preserving current contract terms and achieving
commodity prices in a contract fora 12 to 24 month period effective
January 1, 2004 that continue to produce savings over the regulated price
to beat (PTB); and
• WHEREAS, CAPP believes that the pricing opportunity window for favorable 2004-
2005 deliveries will be short-lived (in the October to mid-November time
period) 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, experiences in contracting for 2002-2003 demonstrated that Retail Electric
Providers demand immediate response to an offer and may penalize delay
with higher prices; and
WHEREAS, the deregulated electric market is complex, likely to penalize those
unaware of its transmission constraints and likely to reward those who can
improve the size and shape of the particular load to be served and the City
benefits from jointly shared experience and collective purchasing power
through CAPP; and
WHEREAS, it is necessary for the City to contract for a supply of electricity for 2004
or at least partially revert to PTB rates; and
WHEREAS, CAPP's current delivered energy prices provide savings when measured
against PTB, and PTB rates likely will continue to remain higher than
prices CAPP can achieve on behalf of the City.
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NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
• CITY OF RICHLAND HILLS, TEXAS, THAT:
I.
The Mayor or a designee 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 and Geoffrey M. Gay, legal counsel to CAPP, before October 8, 2003.
PRESENTED AND PASSED on this 23rd day of September , 2003, by a vote
of 5 ayes and ~ nays at a regular meeting of the City Council of the City of
Richland Hills ,Texas.
`~~`~?ND y~~l~'•
• ~ . ~ ' Neld S. Stroder, Mayor
ATTEST: ' ~
Terri Willis, CMC, City Secretary
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