Res 103-2002 10/1/2002RESOLUTION NO. k U3-OCO�)-
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, 2003, 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 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,
WHEREEAS, CAPP believes that the pricing opportunity window for favorable
2003 deliveries will be short-lived 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, experience during 2001 -2002 has demonstrated that Retail Electric
Providers demand immediate response to an offer; and,
WHEREAS, the deregulated electric 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 WICHITA FALLS, 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 24 hours of said approval and recommendation. The
contract may be for a 12 to 24 month time frame.
SECTION 2. It is hereby officially found and determined that the meeting at
which this resolution was passed was open to the public as required by law.
PASSED AND APPROVED this the 1st of October, 2002.
ATTEST: