HomeMy WebLinkAboutResolution 2010-034 RESOLUTION NO. 2010 -034
A RESOLUTION OF THE CITY OF NORTH RICHLAND HILLS, TEXAS,
AUTHORIZING THE CITIES AGGREGATION POWER PROJECT, INC.
(CAPP) TO NEGOTIATE AN EXTENSION TO THE CURRENT
ELECTRIC SUPPLY AND NECESSARY RELATED SERVICES
AGREEMENT WITH NEXT ERA FOR A FIXED PRICE PER kWh THAT
IS LOWER THAN CONTRACT RATES FOR 2011 -2013, SAID
EXTENSION TO CONTINUE UNTIL DECEMBER 31, 2018; APPROVING
CAPP CONTRACTING WITH NEXT ERA AND AUTHORIZING THE
CITY MANAGER TO SIGN A CONTRACT WITH CAPP FOR THE
CITY'S ELECTRICITY NEEDS FOR THE PERIOD BEGINNING
JANUARY 1, 2011 OR AS SOON AFTER FINALIZATION OF A
CONTRACT AS POSSIBLE AND EXTENDING UP TO DECEMBER 31,
2018; COMMITTING TO BUDGET FOR ENERGY PURCHASES AND
TO HONOR THE CITY'S COMMITMENTS TO PURCHASE POWER
THROUGH CAPP FOR ITS ELECTRICAL NEEDS THROUGH
DECEMBER 31, 2018.
WHEREAS, the City of North 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 102 political
subdivision members in the competitive retail market; and
WHEREAS, CAPP 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 Next Era arranged through
CAPP expires December 31, 2013; and
WHEREAS, the CAPP Board of Directors is currently considering a blend and extend
contract with Next Era with indicative retail energy prices that will reduce
the prices under the current contract for the next three years and extend a
fixed price for energy through December 31, 2018; and
WHEREAS, the current contract is a master agreement between CAPP and Next Era
endorsed by contract with individual CAPP members; and
WHEREAS, CAPP 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 for CAPP load since 2002 demonstrated that
providers demand immediate response to an offer and may penalize
delay with higher prices; and
Resolution No. 2010 -034
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WHEREAS, suppliers demand assurance that CAPP will pay for all contracted Toad;
and
WHEREAS, the City must assure CAPP that it will budget for energy purchases and
honor its commitments to purchase power for its electrical needs through
CAPP for the period beginning January 1, 2011 and extending through
December 31, 2018; and
WHEREAS, CAPP intends to continue to contract with Next Era (power supply) and
Direct Energy (billing, administrative and other customer services); and
WHEREAS, the current contractual relationships between CAPP and Next Era and
Direct Energy have been beneficial and cost effective for CAPP members
and the City.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF NORTH RICHLAND
HILLS, TEXAS:
SECTION 1. THAT the CAPP Board and its consultants and advisors are agents
authorized to negotiate for the City's electricity needs as a member of
CAPP and extend the current supply agreement through December 31,
2018.
SECTION 2, THAT the City approves CAPP extending its current contract with Next
Era for the supply of electric power and related, necessary services for the
City for a term to begin January 1, 2011 or as soon after finalization of a
contract as possible and extending up to December 31, 2018, so long as
the extension results in savings over the current contract term of 2011-
2013 and results in fixed prices through December 31, 2018.
SECTION 3, THAT the City Manager will execute a contract with CAPP that permits the
Chairman of CAPP to sign a Commercial Electricity Supply Agreement
( "CESA ") for the City's electricity needs and related, necessary services
beginning January 1, 2011 and extending up to December 31, 2018, as a
member of CAPP and commits its load for the same period pursuant to
the contract recommended and approved by the CAPP Board of Directors,
provided that the energy price to be paid per kWh in 2011 -2013 is less
than the current contract price for 2011 -2013 resulting in savings for the
City and that the fixed price for the period 2011 -2013 will continue through
December 31, 2018.
Resolution No. 2010 -034
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SECTION 4, THAT the City will budget and approve funds necessary to pay electricity
costs proportionate to the City's load under the supply agreement
arranged by CAPP and signed by the Chairman of CAPP on behalf of all
CAPP members for the term beginning January 1, 2011 and extending up
to December 31, 2018.
SECTION 5, THAT 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.
PASSED AND APPROVED this the 13th day of December, 2010.
CITY • ORTH ' CHLAND HILLS
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By:
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,o‘ RICy 4 O car Trevino, Mayor
ATTEST: E 9/ 11
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Patricia Hut , 5+ y i i tary
APPROVED AS TO FORM AND LEGALITY:
George A. Staple , City Attorney
APPROVED AS TO CONTENT:
Karen Bostic, Assistant City Manager
Resolution No. 2010 -034
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