Resolution 2008-46 RESOLUTION NO. 2008-46(R)
A RESOLUTION OF THE CITY OF WYLIE, TEXAS, AUTHORIZING
THE CITIES AGGRE~GATION POWER PROJECT, INC. (CAPP) TO
NEGOTIATE AN ELECTRIC SUPPLY AGREEMENT FOR
DELIVERIES OF ELECTRICITY AND NECESSARY, RELATED
SERVICES EFFECTIVE JANUARY 1, 2009; AUTHORIZING CAPP TO
ACT AS AN AGENT ON BEHALF OF THE CITY TO ENTER INTO A
CONTRACT FOR ELECTRICITY; APPROVING CAPP
CONTRACTING WITH FPL ENERGY AND DIRECT ENERGY AND
AUTHORIZING THE CHAIRMAN OF CAPP TO EXECUTE AN
ELECTRIC SUPPLY AGREEMENT FOR DELIVERIES OF
ELECTRICITY EFFECTIVE JANUARY 1, 2009; COMMITTING TO
BUDGET FOR ENERGY PURCHASES AND TO HONOR THE CITY'S
COMMITMENTS TO PURCHASE POWER THROUGH CAPP FOR
ITS ELECTRICAL NEEDS BEGINNING JANUARY 1, 2009
THROUGH DECEMBER 31, 2013.
WHEREAS, 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 111 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 expires December 31, 2008; and
WHEREAS, CAPP members must secure power supplies for 2009 or revert to high
price standard contracts and independently shop for a power contract; and
WHEREAS, the CAPP Board of Directors is currently considering indicative retail
energy prices that point to favorable pricing for the five year period ending December 31, 2013;
and
WHEREAS, power providers desire to execute a contract with one, and only one, entity
rather than have unique contracts for each CAPP member; and
WHEREAS, CAPP believes that the pricing opportunity window for favorable 2009
deliveries will be short-lived and that CAPP 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 CAPP load since 2002 demonstrated that
providers demand immediate response to an offer and may penalize delay with higher prices; and
Resolution No. 2008-46(R)
CAPP Electric Supply Agreement
~ WHEREAS, aggregated rates contracted during favorable pricing periods are likely to
be lower than prices obtained by the City contracting individually during the same time period;
and
WHEREAS, suppliers demand assurance that CAPP will pay for all contracted load;
and
WHEREAS, the City needs to 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, 2009, and extending through December 31, 2013; and
WHEREAS, CAPP intends to continue to contract with both FPL Energy (power
supply) and Direct Energy (billing, administrative and other customer services); and
WHEREAS, the current contractual relationships between CAPP and FPL Energy 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
WYLIE, 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 to contract for the
electric power supply and related, necessary services for the City for a term to begin January 1,
2009 and extending up to December 31, 2013.
Section 2: That the City approves CAPP contracting with FPL Energy and Direct Energy
for the supply of electric power and related, necessary services for the City for a term to begin
January 1, 2009 and extending up to December 31, 2013.
Section 3: That the Chairman of CAPP is hereby authorized to sign a Commercial
Electric Service 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.
Section 4: That 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 l, 2009
and extending up to December 31, 2013.
Section 5: That 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.
Resolution No. 2008-46(R)
CAPP Electric Supply Agreement
~ DULY PASSED AND APPROVED on this 28`h day of October, 2008, by a vote of
ayes and nays at a regular meeting of the City Council of the City of Wylie,
Texas.
~
Eric Hogue, Ma o
ATTEST: ~E~ s ' "
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Carole Ehrlic , City Secretary _ ~ S~ f' >
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Resolution No. 2008-46(R)
CAVP Electric Supply Agreement