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Directors, all of whom must be city employees of members who represent diversity in size and <br />geography; and <br />WHEREAS, wholesale power prices within the deregulated Texas market are largely <br />determined by the NYMEX gas futures prices for natural gas which are currently low and <br />relatively stable, but which change daily; and <br />WHEREAS, daily price changes require retail customers to execute a contract <br />immediately upon receipt of a favorable offer; and <br />WHEREAS, pursuant to Texas Local Government Code Section 252.022(a)(15) <br />expenditures for electricity are exempt from competitive bidding requirements; and <br />WHEREAS, on any given day, TCAP is able to capture a favorable wholesale price for <br />any period of time, comparable to or better than any given REP or broker; and <br />WHEREAS, TCAP intends to continue to contract with its current wholesale supplier, <br />NextEra, because the relationship with NextEra is such that NextEra is willing, after it knows the <br />size of a given load, to execute a contract at or below prescribed price and terms; and <br />WHEREAS, the City desires to execute a contract for electricity for the period beyond <br />the expiration of its current contract on December 31, 2017 that locks -in favorable wholesale <br />prices under one of three different supply options: <br />Option 1 - fixed -price, full- requirements at a price not to exceed 4.1 cents per kWh for <br />the North and West zones or 4.25 cents per kWh for the South and Houston zones; <br />Option 2 - fixed price for on -peak hours and variable spot market prices for off -peak <br />hours; <br />Option 3 - block energy at a fixed price to cover the base load hours, a fixed price for <br />solar energy to cover mid -day peak hours (approximately 10% of total load) and variable spot <br />market prices for all remaining consumption; and <br />WHEREAS, TCAP will allow members six weeks from receipt of this resolution to <br />consider whether to participate in this second opportunity to contract for post -2017 electrical <br />supply, and thereafter allow NextEra until June 30, 2016 to contact for power for five years at a <br />price not to exceed 4.1 cents per kWh in the North and West zones and a price not to exceed 4.25 <br />cents per kWh in the South and Houston zones for Option 1 , so long as the aggregated load for <br />any of the three supply options reaches at least 50 megawatts; and <br />WHEREAS, wholesale suppliers demand assurance that TCAP will pay for all <br />contracted load; and <br />WHEREAS, the City needs to assure TCAP that it will sign a Commercial Electric <br />Supply Agreement (CESA) reflecting the contract extension and budget for energy purchases for <br />K <br />