R-2086-9-02RESOLUTION NO. 2086-9-02(R)
' A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ALLEN, COLLIN
COUNTY, TEXAS, AUTHORIZING THE CITY MANAGER 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, 2003.
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 eighty (80)
members in the competitive retail market; and,
WHEREAS, CAPP negotiated favorable contract terms and a reasonable commodity price for delivered
electricity in 2002 for its members; and,
WHEREAS, CAPP anticipates preserving current contract terms and achieving slight improvement in current
commodity prices in a contract for 2003; and,
WHEREAS, CAPP believes that the pricing opportunity window for favorable 2003 deliveries will be short-
lived and that CAPP members most be able to commit contractually to prices within a twenty-four (24) hour
period in order to lock -in favorable prices; and,
WHEREAS, experience during 2001-2002 has demonstrated that Retail Electric Providers demand
immediate response to an offer; and,
' WHEREAS, the deregulated electnc market is complex, likely to penalize those unaware of its constraints
and likely to reward those who can improve the size and shape of a particular load, the City benefits from
jointly shared experience and collective purchasing power arranged through CAPP; and,
WHEREAS, it is necessary for the City to contract for a supply of electricity in 2003 or at least partially
revert to price to beat rates (PTB); and,
WHEREAS, CAPP's current delivered energy prices provide savings when measured against PTB, and PTB
rates likely will be increased before the end of the year.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ALLEN,
COLLIN COUNTY, TEXAS, THAT:
SECTION 1. 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 twenty-four (24)
hours of said approval and recommendation. The contract may be for a twelve (12) to twenty-four (24) month
time frame.
SECTION 2. The City Secretary shall forward a certified copy of this resolution to Ms. Mary Bunkley,
City Attorney's Office, City of Arlington, P. O. Box 231, Arlington, Texas 76004-0231 before
September 30, 2002.
DULY PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF ALLEN, COLLIN
COUNTY, TEXAS, ON THIS THE 10ra DAY OF SEPTEMBER 2002.
APPROVED:
r v —ela
Stephen Terrell, Mayor
ATTEST:
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Juiry Mo u, CMC/MMCA, CITY SECRETARY
Resolution No. 20869-02(R), Page 2