12-C Update on CAPP - Laserfiche WebLink

Home Browse Search

Page 2 December 28,2006 for CAPP members. No other aggregator offers this one-of-a-kind arrangement, which makes the nature and magnitude of various costs more transparent (more so than any traditional retail electric contract). Moreover, this distinctive contract structure permits CAPP to take power using multiple supply agreements, including an anticipated long-term base load power supply agreement for 55 -60 percent of CAPP's load that is expected to commence in 2009. Highlight No.3 CAPP's Clout Increases as Membership Roll Grows CAPP's influence in the marketplace and among policy makers continues to grow. CAPP now has 96 city and other political subdivision members. This year every 2005 CAPP member approved resolutions renewing CAPP membership. In addition, several new members joined CAPP in 2006, including Oak Point, Copperas Cove, Whitney, Celina, Sugar Land, La Marque, Aquilla Water Supply District, Lake Jackson, Webster, Pearland, Spring Valley, and Texas City. Power suppliers are increasingly aware of the attractiveness ofCAPP's growing aggregated load. Highlight No.4 Long:-Term Contract to Reduce Electric Costs Nears Final Ag:reement All but two CAPP members passed resolutions supporting CAPP's efforts to secure a long-term base load power supply contract to reduce costs and price volatility. For the past several months, CAPP consultants have been engaged in exclusive negotiations to structure a 25- year fixed price, no-escalation power purchase agreement at a price significantly below current market prices. It is anticipated that as early as next month the CAPP Board will finalize a contract and will release it to CAPP members for consideration. Highlight No.5 CAPP's Advocacy Benefits Members and the Texas Market For the past several years, CAPP has been an active participant in legislative and policy arenas to advocate for a competitive electric market. Early this year, CAPP and ST AP were involved in the PUC proceeding convened to consider the model protocols for a nodal market in ERCOT. During a week-long hearing, the Commission heard testimony regarding hundreds of pages of protocols recommended by ERCOT. Ultimately, the Commission required only three changes be made to the proposed protocols. Two of the three mandated changes were proposals advocated by CAPP and STAP. CAPP will continue to remain vigilant and advocate protections for its members as the ERCOT market undertakes the transition to the nodal market. Cities have significantly raised their profile at ERCOT over the past year. ERCOT is governed by market participants. Consumer voices are few and almost always outnumbered. As a result of a rate settlement with TXU, North Texas cities placed a monitor and customer advocate within ERCOT's midst. With cooperation of CAPP and ST AP members, numerous cities formally joined ERCOT and cities' votes were able to capture both commercial customer seats to the Technical Advisory Committee, giving cities two voices and two votes on the most important committee reporting to the ERCOT Board of Directors. Lloyd Gosselink Blevins Roctlelle & Townsend, P. C. r' .