2003-153-RES AUTHORIZING CITY MANAGER TO EXECUTE ELECTRIC SUPPLY AGREEMENT
RESOLUTION NO. 2003-153
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS,
PARIS, TEXAS, AUTHORIZING THE CITY MANAGER OR HIS
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, 2004; AUTHORIZING
ELIGIBLE DESIGNEES TO INCLUDE THE CHAIRMAN OF CAPPo
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 and 2003 for its members; and,
WHEREAS, CAPP anticipates preserving current contract terms and achieving commodity
prices in a contract for a 12 to 24 month period effective January 1,2004 that continue to produce
savings over the regulated price to beat (PTB); and
WHEREAS, CAPP believes that the pricing opportunity window for favorable 2004-2005
deliveries will be short-lived (in the October to mid-November time period) 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, experiences in contracting for 2002-2003 demonstrated that Retail Electric
Providers demand immediate response to an offer and may penalize delay with higher prices; and,
WHEREAS, the deregulated electric market is complex, likely to penalize those unaware
of its transmission constraints and likely to reward those who can improve the size and shape ofthe
particular load to be served and the City benefits from jointly shared experience and collective
purchasing power through CAPP; and,
WHEREAS, it is necessary for the City to contract for a supply of electricity for 2004 or at
least partially revert to PTB rates; and,
WHEREAS, CAPP's current delivered energy prices provide savings when measured against
PTB, and PTB rates likely will continue to remain higher than prices CAPP can achieve on behalf
of the City; 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 to sign 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 designee may include the
Chairman of CAPP. The contract may be for a 12 to 24 month time frame.
Section 3. That a copy of this resolution shall be sent to Mary Bunkley with the City
Attorney's office in Arlington and Geoffrey M. Gay, legal counsel to CAPP, before October 8, 2003.
PASSED AND APPROVED on this 8th day of September, 2003, by a vote of _ ayes
and _ nays at a regular meeting of the City Council ofthe Cit of Paris, Paris, Texas.
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ATTEST:
Mattie Cunningham, City Clerk