HomeMy Public PortalAboutResolution No. 320-08 05-13-2008 Draft -Alternative to
Letter of Support from CM
RESOLUTION NO. 320-08
A RESOLUTION OF THE CITY OF Richland Hills
EXPRESSING A NON-BINDING INTENT TO
PARTICIPATE IN A LONG-TERM POWER CONTRACT
BEING NEGOTIATED BY CITIES AGGREGATION
POWER PROJECT, INC. SUBJECT TO A REASONABLE i~
DEMONSTRATION OF PROJECTED SAVINGS,
SECURITY AND ECONOMIC BENEFIT
WHEREAS, the City of Richland Hills is a member of Cities Aggregation
Power Project, Inc. (CAPP), anon-profit political subdivision corporation whose purpose
includes contracting for electricity to serve the City's electric accounts; and
ricin for retail electric contracts have been and are likely to continue to be
WHEREAS, p g
based on the futures market for natural gas; and
WHEREAS, it is likely to be economically beneficial for CAPP to meet some portion of
the City's power needs from solid fuel sources; and
WHEREAS, CAPP is in the process of negotiating along-term purchase power
agreement directly from a wholesale supplier with solid fuel generation to meet the baseload
electric energy needs of its members; and
WHEREAS, CAPP has a need to know which of its members may be interested in
participating in a 24-year wholesale agreement that will include a debt service obligation in order
to determine how much power to purchase and how to assign the long-term power benefits and
costs to members; and
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WHEREAS, CAPP will not need a binding commitment to the long-term contract for
several months.
1813/02/res080407
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THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
Richland Hills ,TEXAS that:
Section 1. The City Manager is authorized to give anon-binding expression of interest in
participating in a long-term contract arranged by CAPP subject to a reasonable demonstration of
projected savings.
ma include a twent -four ear commitment and a debt service
Section 2. Participation y Y Y
payment assuming that there is reasonable security for the debt and a reasonable demonstration i
of potential economic benefit. I,
Signed this 16th day of May , 2008.
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