HomeMy WebLinkAboutResolution 2003-072
RESOLUTION NO, 2003-072
A RESOLUTION OF THE CITY OF NORTH RICHLAND
HILLS, 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 1, 2004; AUTHORIZING ELIGIBLE DESIGNEES
TO INCLUDE THE CHAIRMAN OF CAPP
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 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
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.
THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
NORTH RICHLAND HILLS, TEXAS:
1. 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.
2. 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.
PASSED this 23rd day of September, 2003, by the Cit ouncil of the City of
North Richland Hills, Texas. ~
,.,.~.. . ......""" Oscar Trevino, Mayor
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atricia Hutson, City Secretary
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George Staples, City Þ:.ttomey