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HomeMy WebLinkAbout03-13 CAPP SignatoryRESOLUTION NO. 03-13 A RESOLUTION OF THE CITY OF UNIVERSITY PARK, TEXAS, AUTHORIZING THE CITY MANAGER OR HIS 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 l, 2004; AUTHORIZING ELIGIBLE DESIGNEES TO INCLUDE THE CHAIRMAN OF CAPP WHEREAS, the City of University Park, 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 for a 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 favofable 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. 18 i 3~g)~mac~oth03082 i grog BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF UNIVERSITY PARK, TEXAS: That the City Manager or his 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 designee may include the Chairman of CAPP. The contract may be for a 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 17th day of September, 2003, by a vote of ayes and 0 Texas. __ nays at a regular meeting of the City Council of the CityA Mayor 5 University Park, ATTEST: I 813V~)O~nac~oth03082 ! grog