2002-149-RES AUTHORIZE CITY MANAGER TO EXECUTE ELECTRIC SUPPLY AGREEMENT
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.
Section 2. That the City Manager or his designee is hereby authorized and directed to
sign, on behalf of the City of Paris, an electric power agreement pursuant to the contract approved
and recommended by the CAPP Board of Directors within 24 hours of said approval and
recommendation. The contract may be for a 12 to 24 month time frame.
Section 3. That a copy of this resolution shall be sent to Ms. Mary Bunkley with the City
Attorney's office in Arlington before September 30, 2002.
Section 4. That this resolution shall be effective from and after its date of passage.
PRESENTED AND PASSED on this 9th day of September, 2002, by a vote of 7
ayes and 0 nays at a regular meeting of the City Council of the City of Paris, Texas.
~~d
MIchael J. Pfies, or
ATTEST:
~~~'-~~Ci~
Mattie Cunningham. City Clerk
APPROVED AS TO FORM: