R-2220-9-03RESOLUTION NO. 2220-9-03(R)
' A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ALLEN, COLLIN
COUNTY, TEXAS, AUTHORIZING THE CITY MANAGER OR 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; AND
PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City of Allen, 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 continues 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.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ALLEN,
TEXAS, THAT:
SECTION 1. The City Manager or 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 for a 12- to 24 -month time frame.
SECTION 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 1, 2003,
SECTION 3. This resolution shall take effect immediately upon its passage.
1
DULY PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF ALLEN, COLLIN
COUNTY, TEXAS, ON THIS THE 23" DAY OF SEPTEMBER, 2003.
APPROVED:
Stephen Terrell, Mayor
ATTEST:
Shelley B. GeorkA TRMC, CITY S TARY
Resolution No. 2220-9-03(R), Page 2