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DRAFT <br />Cities Aggregation Power Project <br />Request for Qualifications <br />for <br />Power Supply Services <br />DRAFT <br />The Cities Aggregation Power Project (CAPP), a group of approximately 53 Texas cities, <br />intends to select a Retail Energy Provider (REP) to serve the electric needs of their <br />combined inunicipal loads. CAPP anticipates issuing a fonnal Request for Proposal <br />(RFP) to selected parties detailing the exact nature of electric services requested to serve <br />the needs of the CAPP niember cities. This Request For Qualifications (RFQ) is issued <br />to allow CAPP to select a group of qualified parties to participate in the RFP process. A <br />brief background of CAPP, description of the requested services, and requested <br />qualifications is provided below. <br />Background of CAPP <br />C:4PP is a non-profit political subdivision corporation fonned in the state of Texas, with <br />a current potential membership of 53 member cities. Currently, member CAPP cities are <br />served by various electric utility providers including: TXU, Reliant, WTCT, azid T'NMP. <br />These utilities will be implementing open access customer choice in their service areas <br />begiruung January 1, 2002. CAPP was formed to join the individual municipal electric <br />requirements of the member cities into an aggregated pool in order to realize volume <br />savings on electric service. CAPP anticipates adding new member cities on an annual <br />basis in the future to bring the benefits of the pool to more cities in Texas. <br />The direction and inanagement of CAPP is vested in a Board of Director composed <br />presently of 3 persons as follows: <br />Jay Doegey - City of Arlington <br />Danny Reed - City of Ft Worth <br />Steven Bacchus - City of Lewisville <br />This Board will be expanded to 9 members. The first elected Board will include <br />members based on the following: <br />Each individual city with a population above 500,000 will have one seat; <br />All cities with a population between 100,000 and 500,000 will be guaranteed in <br />combination one seat; <br />All cities with a population between 50,000 a,nd 100,000 will be guaranteed in <br />C:ITEMP\CAPP RFQ Draft5_16_01.doc 05/16/2001 <br />