2011-011 RES TEXAS COALITION FOR AFFORDABLE POWER TO NEGOTIATE EXTENSION TO CURRENT ELECTRIC SUPPLY WITH NEXT ERA FOR 2011-2013RESOLUTION N0. 2011-011
A RESOLUTION OF THE CITY OF PARIS, TEXAS, AUTHORIZING THE
TEXAS COALITION FOR AFFORDABLE POWER (TCAP) TO NEGOTIATE
AN EXTENSION TO THE CURRENT ELECTRIC SUPPLY AND NECESSARY
RELATED SERVICES AGREEMENT WITH NEXT ERA FOR A FIXED PRICE
PER kWh THAT IS LOWER THAN CONTRACT RATES FOR 2011-2013,
SAID EXTENSION TO CONTINUE UNTIL DECEMBER 31, 2018;
APPROVING TCAP CONTRACTING WITH NEXT ERA AND AUTHORIZING
THE CITY MANAGER TO SIGN A CONTRACT WITH TCAP FOR THE CITY'S
ELECTRICITY NEEDS FOR THE PERIOD BEGINNING AS SOON AFTER
FIIVALIZATION OF A CONTRACT AS POSSIBLE AND EXTENDING UP TO
DECEMBER 31, 2018; COMMITTING TO BUDGET FOR ENERGY
PURCHASES AND TO HONOR THE CITY'S COMMITMEIVTS TO PURCHASE
POWER THROUGH TCAP FOR ITS ELECTRICAL NEEDS THROUGH
DECEMBER 31, 2018.
WHEREAS, the City of Paris, Texas ("City") is a member of Texas Coalition for
Affordable Power ("TCAP"), a nonprofit political subdivision corporation dedicated to
securing electric power for its 157 political subdivision members in the competitive retail
market; and,
WHEREAS, TCAP negotiated favorable contract terms and a reasonable commodity
price for delivered electricity since 2002 resulting in significant savings for its members;
and,
WHEREAS, the City's current contract for power with Next Era arranged through
TCAP expires December 31, 2013; and,
WHEREAS, the TCAP Board of Directors is currently considering a blend and extend
contract with IVext Era with indicative retail energy prices that will reduce the prices under
the current contract for the next three years and extend a fixed price for energy through
December 31, 2018; and,
WHEREAS, the current contract is a master agreement between TCAP and Next Era
endorsed by contract with individual TCAP members; and,
WHEREAS, TCAP must be able to commit contractually to prices in a blend and
extend contract amendment within a 24-hour period in order to lock-in favorable prices;
and,
WHEREAS, experiences in contracting for TCAP load since 2002 demonstrated that
providers demand immediate response to an offer and may penalize delay with higher
prices; and,
WHEREAS, suppliers demand assurance that TCAP will pay for all contracted load;
and,
WHEREAS, the City must assure TCAP that it will budget for energy purchases and
honor its commitments to purchase power for its electrical needs through TCAP for the
period beginning January 1, 2011 and extending through December 31, 2018; and,
WHEREAS, TCAP intends to continue to contract with IVext Era (power supply) and
Direct Energy (billing, administrative and other customer services); and,
WHEREAS, the current contractual relationships between TCAP and Next Era and
Direct Energy have been beneficial and cost effective for TCAP members and the City,
1VOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
PARIS, TEXAS:
Section 1. The findings set out in the preamble to this resolution are hereby in
all things approved.
Section 2. That the TCAP Board and its consultants and advisors are agents
authorized to negotiate for the City's electricity needs as a member of TCAP and extend the
current supply agreement through December 31, 2018.
Section 3. That the City approves TCAP extending its current contract with Next
Era for the supply of electric power and related, necessary services for the City for a term
to begin as soon after finalization of a contract as possible and extending up to December
31, 2018, so long as the extension results in savings over the current contract term of 2011-
2013 and results in fixed prices through December 31, 2018.
Section 4. That the City Manager, be and he is hereby authorized and directed to
execute on behalf of the City of Paris a contract with TCAP that permits the President of
TCAP to sign a Commercial Electricity Supply Agreement ("CESA") for the City's electricity
needs and related, necessary services beginning January 1, 2011 and extending up to
December 31, 2018, as a member of TCAP and commits its load for the same period
pursuant to the contract recommended and approved by the TCAP Board of Directors,
provided that the energy price to be paid per kWh in 2011-2013 is less than the current
contract price for 2011-2013 resulting in savings for the City and that the fixed price for
the period 2011-2013 will continue through December 31, 2018.
Section 5. That the City will budget and approve funds necessary to pay
electricity costs proportionate to the City's load under the supply agreement arranged by
TCAP and signed by the President of TCAP on behalf of all TCAP members for the term
beginning as soon after finalization of a contract as possible and extending up to December
31, 2018.
Section 6. That a copy of the resolution shall be sent to Mary Bunkley with the
Ciry Attorney's office in Arlington and Geoffrey M. Gay, legal counsel to TCAP.
PRESENTED AND PASSED on this 14th day of February, 2011, by a vote of 7
ayes and 0 nays at a regular meeting of the City Council of the City of Paris, Texas.
' r , Mayor
ATTEST:
ice Ellis, City Clerk
APPROVED AS TO FORM:
W. Kent McI City Attorney