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RESOLUTION NO. <br />A RESOLUTION OF THE CITY OF , TEXAS, <br />AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO EXECUTE <br />AN ELECTRIC SUPPLY AGREEMENT PURSUANT TO THE CONTRACT <br />TO BE SIGNED BY CITIES AGGREGATION POWER PRO7ECT, 1NC. FOR <br />DELIVERIES OF ELECTRICITY EFFECTIVE 7ANUARY 1, 2003 <br />WHEREAS, the City of , Texas (City) is a member of Cities <br />Aggregation Power Project, Inc. (CAPP), a nonproSt political subdivision <br />corporation dedicated to securing electric power for its more than 80 <br />members in the competitive retail market; and <br />WHEREAS, CAPP negotiated favorable contract terms and a reasonable commodity <br />price for delivered electricity in 2002 for its members; and <br />WHEREAS, CAPP anticipates preserving current contract terms and achieving slight <br />improvement in current commodity prices in a contract for 2003; and <br />WHEREAS, CAPP believes that the pricing opportunity window for favorable 2003 <br />deliveries will be short-lived and that CAPP members must be able to <br />commit contractually to prices within a 24-hour period in order to lock-in <br />favorable prices; and <br />WHEREAS, experience during 2001-2002 has demonstrated that Retail Electric <br />Providers demand immediate response to an offer; and <br />WHEREAS, the deregulated electric market is complex, likely to penalize those <br />unaware of its constraints and likely to reward those who can improve the <br />size and shape of a particular load, the City benefits from jointly shared <br />experience and collective purchasing power azranged through CAPP; and <br />WHEREAS, it is necessary for the City to contract for a supply of electricity in 2003 or <br />at least partially reveR to price to beat rates (PTB); and <br />WHEREAS, CAPP's current delivered energy prices provide savings when measured <br />against PTB, and PTB rates likely will be increased before the end of the <br />year. <br />1 813\00'unacbth020805gmg <br />