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<br />Lloyd <br />A A T Q?N~~~l!r:~ <br /> <br />816 Congress Avenue, Suite 1900 <br />Austin, Texas 7870 I <br />Telephone: (512) 322-5800 <br />Facsimile: (512) 472-0532 <br /> <br />www.lglawflrm.com <br /> <br />Ms. Doyle's Direct Line: (512) 322-5820 <br />Email: kdoyle@lglawfirm.com <br /> <br />MEMORANDUM <br /> <br />TO: CAPP Members <br />FROM: Geoffrey Gay <br /> Kristen Doyle <br />DATE: September 27, 2006 <br />RE: Price Lock for 2007 <br /> <br />Last week, energy prices for the CAPP 2007 - 2008 power supply contract were locked- <br />in for six quarters commencing January 1,2007. The blended energy price for the 12 months of <br />2007 will be $0.08132/kWh, which includes the DEBS Retail Provider administrative fee. This <br />figure does not include the CAPP aggregation fee (currently $O.0013/kWh but not as yet set by <br />the Board for 2007) or non-bypassable transmission and distribution provider fees. The 2007 <br />price is better than was previously anticipated, leading to a greater budget savings than projected <br />earlier this year. For forecasting purposes, savings off of calendar year 2006 electric service bills <br />(including non-bypassables) will average approximately 12.5 percent. <br /> <br />The process for formalizing the contract through the Commercial Electricity Service <br />Agreement (CESA) is explained below. <br /> <br />Commercial Electric Service Agreement <br /> <br />The CESA is the contract for retail electric service between an individual member and <br />DEBS. Based on the authority already extended by each CAPP member through resolutions <br />passed earlier this summer, CAPP Chairman Jay Doegey will execute individual amendments to <br />the existing CESAs for all CAPP members as soon as they are prepared, probably later today or <br />tomorrow. <br /> <br />Within the next two weeks, every member will receive a copy of the amendment of their <br />CESA extending retail service for 2007 - 2008 signed by Jay. Attached to the CESA will be a <br />current list of ESI-ID accounts which will be billed by DEBS starting with January meter reads <br />(along with any new account additions less than 1000 kw between now and the end ofthe year). <br />Each member should verify the ESI-ID account list and send corrections to the appropriate <br />DEBS account representative. <br /> <br />Please note that Section 7 of the CESA adds language to the existing Customer's <br />Representations and Warranties section which requires confirmation that your political <br /> <br />1813\00\2007powerresolutions\mmo060927 <br /> <br />Lloyd Gosselink Blevins Rochelle & Townsend, Pc. <br />