06-O Electric Supply Agmt-CAPPDRAFT
ALICEhO. ESWORK\CURRENT\Electric Supply Agreement CAPP Res
September 6, 2001
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS,
PARIS, TEXAS, AUTHORIZING THE CITY MANAGER TO SIGN AN
ELECTRIC SUPPLY AGREEMENT WITH THE WINNING BIDDER FOR
THE ELECTRIC LOAD OF CITIES AGGREGATION POWER PROJECT,
INC. UPON CONFIRMATION OF ECONOMIC BENEFIT TO THE CITY;
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 members in the competitive retail electric market effective January 1, 2002; and,
WHEREAS, CAPP has received bids from qualified bidders to serve approximately 70 CAPP
members more than 700 million kWh annually; and,
WHEREAS, CAPP has the expectation of negotiating with one or two bid finalists while
simultaneously working with a designated representative from each member City to establish and
maximize economic benefit; and,
WHEREAS, CAPP has provided a window of opportunity for its member cities to confirm
that the winning bid provides economic advantage to each member when the pricing and terms of the
winning bid are compared to perpetuation of service from the affiliated provider of the incumbent
utility with price to beat rates and independent economic advantage with regard to the pricing of large
non-price to beat accounts; and,
WHEREAS, it is necessary for the City to act expeditiously within the period between the
announcement of the winning bid and the signing of power contracts; and,
WHEREAS, it is necessary for the City to have a contract for the supply of electricity in the
new competitive environment; 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 City Manager Michael E. Malone is hereby charged to confirm that: (a) the
winning bid to supply CAPP's load will economically benefit the City when measured against service
from the affiliated REP of the incumbent utility and (b) to work with CAPP in the finalization of the
contracting process and commitment of specific electric accounts of the City to the aggregated load.
Section 3. That City Manager Michael E. Malone is authorized to sign the necessary power
supply contracts or agreements ratifying the City's participation in CAPP after confirming economic
benefit to the City.
Section 4. That this resolution shall be effective from and after its date of passage.
PASSED AND APPROVED this 10th day of September, 2001.
Michael J. Pfiester, Mayor
ATTEST:
Mattie Cunningham, City Clerk
APPROVED AS TO FORM:
Larry W. Schenk, City Attorney