Resolution 2010-38 � RESOLUTION NO. 2010-38(R)
A RESOLUTION OF THE CITY OF WYLIE, 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.
WH:EREAS, the City of Wylie, 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
WH�:EREAS, CAPP negotiated favorable contract terms and a reasonable commodity price for
delivered electricity since 2002 resulting in significant savings for its members;
and
WH[EREAS, the City's current contract for power with Next Era arranged through CAPP
expires December 31, 2013; and
WH[EREAS, 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 next three years and extend a fixed price for energy
through December 31, 2018; and
WHEREAS, the current contract is a master agreement between 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
Resolution 2010-38(R)
CAPP Extension of Electric Agreement 1
WI�EREAS, suppliers demand assurance that CAPP will pay for all contracted load; and
WI-�EREAS, 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 l, 2011, and extending through December 31, 2018; and
WI�EREAS, CAPP intends to continue to contract with Next Era (power supply) and Direct
Energy (billing, administrative and other customer services); and
WI�[EREAS, 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
WY'LIE, TEXAS:
Section 1:
That 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
agre;ement through December 31, 2018.
Section 2: --�
That 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 l, 2011
or a.s 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:
That 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:
That the City will budget and approve funds necessary to pay electricity costs
pro�ortionate to the City's road under the supply agreement arranged by CAPP and the CESA
sigried by the Chairman of CAPP on behalf of the City for the term beginning January l, 2011 or
as soon after finalization of a contract as possible and extending up to December 31, 2018. ._._,.
Resolution 2010-38(R)
CAPP Extension of Electric Agreement 2
Sec�ion 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.
PRESENTED AND PASSED on this 14th day of December, 2010,
�`
Eric Hogue, Mayo
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Resalution 2010-38(R)
CAPP Extension of Electric Agreement 3