Res 170-2005 12/20/2005RESOLUTION NO.
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WICHITA
FALLS, TEXAS, APPROVING THE CITIES AGGREGATION POWER
PROJECT'S (CAPP's) EFFORTS TO ENTER INTO NEGOTIATIONS
FOR A CAPACITY CONTRACT WITH THE OWNER OF COAL
GENERATION TO SUPPLY THE BASE LOAD ELECTRIC POWER FOR
CAPP MEMBERS OVER A 10 -YEAR PERIOD; 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 ( "City ") is a member of Cities Aggregation
Power Project, Inc. ( "CAPP "), and said membership has resulted in average annual
savings over 20% off the Public Utility Commission ( "PUC ") approved price to beat;
and,
WHEREAS, all retail power bids from various Retail Electric Providers (REPs) in
the deregulated electric retail market have been directly linked to natural gas future
prices; and,
WHEREAS, natural gas prices have been extremely volatile and have caused
substantial increases in the price of electricity paid by the City; and,
WHEREAS, CAPP is in the process of negotiating a 10 -year capacity supply
contract for the city's base load electric needs (approximately 55% of the city's total
electric energy needs) for a fixed price that should provide considerable economic
benefit and greater price stability in comparison to traditional energy contracts with
REPs; and,
WHEREAS, coal -fired capacity in Texas available to retail load is scarce, and
unique opportunities may be available to CAPP members to increase savings and
reduce electric price volatility.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF WICHITA FALLS, TEXAS, THAT:
SECTION 1 . The City of Wichita Falls supports the efforts of the CAPP Board to
secure coal capacity for the City of Wichita Falls' base load electric capacity needs for a
fixed price for a 10 -year period commencing in the fourth quarter of 2007.
SECTION 2 . The City of Wichita Falls endorses the CAPP Board committing to a
letter of intent to contract for coal capacity with the understanding that: (1) CAPP will
provide proof of economic benefit of coal capacity and energy from a coal and gas mix
in comparison to exclusive reliance on energy priced on 100% gas generation, coupled
with a conservative forecast of natural gas prices; (2) the Ciiy of Wichita Falls will have
an opportunity to review and approve or reject, as it deems appropriate for the City of
Wichita Falls, a 10 -year contractual agreement to supply all the city's power needs; and
(3) CAPP will issue bonds to secure funding of amounts necessary to prepay the
capacity portion of the coal supply contract.
SECTION 3 . 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 20 day of December, 2005.
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ATTEST:
ity Clerk