Res 128-2003 10/7/2003f
RESOLUTION NO. I ��- _�_CX>'S
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WICHITA
FALLS, 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; FINDING AND
DETERMINING THAT THE MEETING AT WHICH THIS RESOLUTION
WAS PASSED WAS OPEN TO THE PUBLIC AS REQUIRED BY LAW.
WHEREAS, the City of Wichita Falls, 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
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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 WICHITA FALLS, TEXAS, THAT:
SECTION 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 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.
PASSED AND APPROVED this the 71h day of October, 2003.
ATTEST:
_h_UA Oro_) l_0_� )UM-1/City Clerk
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MAYOR