Res 129-2010 11/16/2010 RESOLUTION N0. 129-2010
Resolution Of The City Of Wichita Falls, Texas, Authorizing The
Cities Aggregation Power Project, Inc. (CAPP) To Negotiate An
Extension To The Current Electric Supply And Necessary Related
Services Agreement With Next Era For A Fixed Price Per kWh That Is
Lower Than Contract Rates For 2011-2013, Said Extension To
Continue Until December 31, 2018; Authorizing CAPP To Act As An
Agent On Behalf Of The City To Enter Into A Contract For Electricity;
Authorizing The Chairman Of CAPP To Execute An Extension To The
Current Electric Supply Agreement For Deliveries Of Electricity
Effective January 1, 2011 Or As Soon After Finalization Of A Contract
As Possible; Committing To Budget For Energy Purchases And To
Honor The City's Commitments To Purchase Power Through CAPP
For Its Electrical Needs Through December 31, 2018
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 102 political subdivision members in the
competitive retail market; and
WHEREAS, CAPP negotiated favorable contract terms and a reasonable
commodity price for delivered electricity since 2002 resulting in significant savings for its
members; and
WHEREAS, the City's current contract for power with Next Era arranged through
CAPP expires December 31, 2013; and
WHEREAS, the CAPP Board of Directors is currently considering a blend and
extend contract with Next Era with indicative retail energy prices that will reduce the
prices under the current contract for the ne� three years and extend a fixed price for
energy through December 31, 2018; and
WHEREAS, the current contract is a master agreement befinreen CAPP and Next
Era endorsed by contract with individual CAPP members; and
WHEREAS, CAPP must be able to commit contractually to prices in a blend and
extend contract amendment within a 24-hour period in order to lock-in favorable prices;
and
WHEREAS, experiences in contracting for CAPP load since 2002 demonstrated
that providers demand immediate response to an offer and may penalize delay with
higher prices; and
WHEREAS, suppliers demand assurance that CAPP will pay for all contracted
load; and
WHEREAS, the City must assure CAPP that it will budget for energy purchases
and honor its commitments to purchase power for its electrical needs through CAPP for
the period beginning January 1, 2011, and extending through December 31, 2018; and
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WHEREAS, CAPP intends to continue to contract with Next Era (power supply)
and Direct Energy (billing, administrative and other customer services); and
WHEREAS, the current contractual relationships between CAPP and Next Era
and Direct Energy have been beneficial and cost effective for CAPP members and the
City.
THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
WICHITA FALLS, TEXAS:
Section 1: The CAPP Board and its consultants and advisors are agents
authorized to negotiate for the City's electric power needs as a member of CAPP and
extend the current supply agreement through December 31, 2018.
Section 2: The City approves CAPP extending its current contract with Next Era
for the supply of electric power and related, necessary services for the City for a term to
begin January 1, 2011 or as soon after finalization of a contract as possible, and
extending up to December 31, 2018, so long as the extension results in savings over
the current contract term of 2011-2013 and results in fixed prices through December 31,
2018.
Section 3: The Chairman of CAPP is hereby authorized to sign a Commercial
Electricity Supply Agreement ("CESA") for the City pursuant to the contract approved
and recommended by the CAPP Board of Directors within 24 hours of said approval and
recommendation, provided that the energy price to be paid per kWh in 2011-2013 is
less than the current contract price for 2011-2013, resulting in savings for the City and
that the fixed price for the period 2011-2013 will continue through December 31, 2018.
Section 4: The City will budget and approve funds necessary to pay electricity
costs proportionate to the City's load under the supply agreement arranged by CAPP
and the CESA signed by the Chairman of CAPP on behalf of the City for the term
beginning January 1, 2011 or as soon after finalization of a contract as possible and
extending up to December 31, 2018.
Section 5: 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 16 day of November, 2010.
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MAYOR
ATTEST:
i Clerk