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DRAFT <br /> <br />F:ALICEhO. EWORK\CURRENT CAPP Electric Supply Agr for 2004 Res <br /> September 5, 2003 <br /> <br />RESOLUTION NO. <br /> <br />A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, <br />PARIS, TEXAS, AUTHORIZING THE CITY MANAGER OR HIS <br />DESIGNEE TO EXECUTE AN ELECTRIC SUPPLY AGREEMENT <br />PURSUANT TO THE CONTRACT TO BE SIGNED BY CITIES <br />AGGREGATION POWER PROJECT, INC. FOR DELIVERIES OF <br />ELECTRICITY EFFECTIVE JANUARY 1, 2004; AUTHORIZING <br /> <br />ELIGIBLE DESIGNEES TO INCLUDE THE CHAIRMAN OF CAPP. <br /> <br /> WHEREAS, the City of Paris, Paris, Texas (City), is a member of Cities Aggregation Power <br />Project, Inc. (CAPP), a nonprofit political subdivision corporation dedicated to securing electric <br />power for its more than 80 members in the competitive retail market; and, <br /> <br /> WHEREAS, CAPP negotiated favorable contract terms and a reasonable commodity price <br />for delivered electricity in 2002 and 2003 for its members; and, <br /> <br /> WHEREAS, CAPP anticipates preserving current contract terms and achieving commodity <br />prices in a contract for a 12 to 24 month period effective January 1, 2004 that continue to produce <br />savings over the regulated price to beat (PTB); and <br /> <br /> WHEREAS, CAPP believes that the pricing opportunity window for favorable 2004-2005 <br />deliveries will be short-lived (in the October to mid-November time period) and that CAPP members <br />must be able to commit contractually to prices within a 24-hour period in order to lock-in favorable <br />prices; and, <br /> <br /> WHEREAS, experiences in contracting for 2002-2003 demonstrated that Retail Electric <br />Providers demand immediate response to an offer and may penalize delay with higher prices; and, <br /> <br /> WHEREAS, the deregulated electric market is complex, likely to penalize those unaware <br />of its transmission constraints and likely to reward those who can improve the size and shape of the <br />particular load to be served and the City benefits from jointly shared experience and collective <br />purchasing power through CAPP; and, <br /> <br /> WHEREAS, it is necessary for the City to contract for a supply of electricity for 2004 or at <br />least partially revert to PTB rates; and, <br /> <br /> WHEREAS, CAPP's current delivered energy prices provide savings when measured against <br />PTB, and PTB rates likely will continue to remain higher than prices CAPP can achieve on behalf <br />of the City; NOW, THEREFORE, <br /> <br /> <br />