2002-149-RES AUTHORIZE CITY MANAGER TO EXECUTE ELECTRIC SUPPLY AGREEMENT

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RESOLUTION NO. 2002-149 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, PARIS, TEXAS, AUTHORIZING THE CITY MANAGER OR IDS DESIGNEE TO EXECUTE AN ELECTRIC SUPPLY AGREEMENT PURSUANT TO THE CONTRACT TO BE SIGNED BY CITIES AGGREGATION POWER PROJECT, INC. FOR DELIVERIES OF ELECTRICITY EFFECTIVE JANUARY 1, 2003; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND DECLARING AN EFFECTIVE DATE. WHEREAS, the City of Paris, Paris, Texas (City), is a member of Cities Aggregation Power Project, Inc. (CAPP), a nonprofit political subdivision corporation dedicated to securing electric power for its more than 80 members in the competitive retail market; and, WHEREAS, CAPP negotiated favorable contract terms and a reasonable commodity price for delivered electricity in 2002 for its members; and, WHEREAS, CAPP anticipates preserving current contract terms and achieving slight improvement in current commodity prices in a contract for 2003; and, WHEREAS, CAPP believes that the pricing opportunity window for favorable 2003 deliveries will be short-lived and that CAPP members must be able to commit contractually to prices within a 24-hour period in order to lock-in favorable prices; and, WHEREAS, experience during 2001-2002 has demonstrated that Retail Electric Providers demand immediate response to an offer; and, WHEREAS, because the deregulated electric market is complex, likely to penalize those unaware of its constraints, and likely to reward those who can improve the size and shape of a particular load, the City benefits fromjointly shared experiences and collective purchasing power arranged through CAPP; and, WHEREAS, it is necessary for the City to contract for a supply of electricity in 2003 or at least partially revert to price to beat rates (PTB); and, . WHEREAS, CAPP's current delivered energy prices provide savings when measured against PTB, and PTB rates likely will be increased before the end of the year; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PARIS, PARIS, TEXAS: Section 1. That the findings set out in the preamble to this resolution are hereby in all things approved.