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RESOLUTION NO. 2008-094 <br />A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS, <br />AUTHORIZING THE CITIES AGGREGATION POWER PROJECT, INC. (CAPP) <br />TO NEGOTIATE AN ELECTRIC SUPPLY AGREEMENT FOR DELIVERIES OF <br />ELECTRICITY AND NECESSARY RELATED SERVICES EFFECTIVE JANUARY <br />1, 2009; APPROVIIVG CAPP CONTRACTING WITH FPL ENERGY A1VD <br />DIRECT ENERGY AND AUTHORIZING THE CITY MANAGER TO SIGN A <br />CONTRACT WITH CAPP FOR THE CITY'S ELECTRICITY 1VEEDS FOR THE <br />PERIOD BEGINNING JANUARY 1, 2009 AND EXTENDING UP TO <br />DECEMBER 31, 2013; COMMITTING TO BUDGET FOR ENERGY <br />PURCHASES AND TO HONOR THE CITY'S COMMITMEIVTS TO PURCHASE <br />POWER THROUGH CAPP FOR ITS ELECTRICAL NEEDS FOR THE PERIOD <br />BEGINNING JANUARY 1, 2009, AND EXTENDING UP TO DECEMBER 31, <br />2013; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE <br />SUBJECT; AND DECLARING AN EFFECTIVE DATE. <br />WHEREAS, the City of Paris, Texas (City) is a member of Cities Aggregation Power <br />Project, Inc. (CAPP), a nonprofit political subdivision corporation dedicated to securing <br />electric power for its 111 political subdivision members in the competitive retail market; <br />and <br />WHEREAS, CAPP negotiated favorable contract terms and a reasonable commodity <br />price for delivered electricity since 2002 resulting in significant savings for its members; <br />and <br />WHEREAS, the City's current contract for power expires December 31, 2008; and <br />WHEREAS, CAPP members must secure power supplies for 2009 or revert to high <br />price standard contracts and independently shop for a power contract; and <br />WHEREAS, the CAPP Board of Directors is currently considering indicative retail <br />energy prices that point to favorable pricing for the five year period ending December 31, <br />2013;and <br />WHEREAS, power providers desire to execute a contract with one, and only one, <br />entity rather than have unique contracts for each CAPP member; and <br />WHEREAS, CAPP believes that the pricing opportunity window for favorable 2009 <br />deliveries will be short-lived and that CAPP must be able to commit contractually to prices <br />within a 24-hour period in order to lock-in favorable prices; and <br />WHEREAS, experiences in contracting for CAPP load since 2002 demonstrated that <br />providers demand immediate response to an offer and may penalize delay with higher <br />prices; and <br />