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TOWN OF PROSPER, TEXAS RESOLUTION NO. 10-116
A RESOLUTION OF THE TOWN OF PROSPER, TEXAS, AUTHORIZING
THE CITIES AGGREGATION POWER PROJECT, INC. (CAPP) 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; AUTHORIZING CAPP TO ACT AS AN AGENT ON
BEHALF OF THE TOWN TO ENTER INTO A CONTRACT FOR
ELECTRICITY; AUTHORIZING THE CHAIRMAN OF CAPP TO EXECUTE
AN EXTENSION TO THE CURRENT ELECTRIC SUPPLY AGREEMENT
FOR DELIVERIES OF ELECTRICITY EFFECTIVE JANUARY 1, 2011 OR
AS SOON AFTER FINALIZATION OF A CONTRACT AS POSSIBLE;
COMMITTING TO BUDGET FOR ENERGY PURCHASES AND TO HONOR
THE TOWN'S COMMITMENTS TO PURCHASE POWER THROUGH CAPP
FOR ITS ELECTRICAL NEEDS THROUGH DECEMBER 31, 2018.
WHEREAS, the Town of Prosper, Texas (Town) is a member of Cities Aggregation Power
Project, Inc. ("CAPP"), a nonprofit political subdivision corporation dedicated to
securing electric power for its 102 political subdivision members in the
competitive retail market; and
WHEREAS, CAPP negotiated favorable contract terms and a reasonable commodity price for
delivered electricity since 2002 resulting in significant savings for its members;
and
WHEREAS, the Town's current contract for power with Next Era arranged through CAPP
expires December 31, 2013; and
WHEREAS, the CAPP Board of Directors is currently considering a blend and extend contract
with Next 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 CAPP and Next Era endorsed
by contract with individual CAPP members; and
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WHEREAS, CAPP 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 CAPP 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 CAPP will pay for all contracted load; and
WHEREAS, the Town must assure CAPP that it will budget for energy purchases and honor its
commitments to purchase power for its electrical needs through CAPP for the
period beginning January 1, 2011, and extending through December 31, 2018; and
WHEREAS, CAPP intends to continue to contract with Next Era (power supply) and Direct
Energy(billing, administrative and other customer services); and
WHEREAS, the current contractual relationships between CAPP and Next Era and Direct
Energy have been beneficial and cost effective for CAPP members and the Town.
THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF
PROPSER, TEXAS:
Section 1:
That the CAPP Board and its consultants and advisors are agents authorized to negotiate
for the Town's electric power needs as a member of CAPP and extend the current supply
agreement through December 31, 2018.
Section 2:
That the Town approves CAPP extending its current contract with Next Era for the
supply of electric power and related, necessary services for the Town for a term to begin January
1, 2011 or 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 3:
That the Chairman of CAPP is hereby authorized to sign a Commercial Electricity
Supply Agreement ("CESA") for the Town pursuant to the contract approved and recommended
by the CAPP Board of Directors within 24 hours of said approval and recommendation, 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 Town and that the fixed price for the period 2011-2013
will continue through December 31, 2018.
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Section 4:
That the Town will budget and approve funds necessary to pay electricity costs
proportionate to the Town's load under the supply agreement arranged by CAPP and the CESA
signed by the Chairman of CAPP on behalf of the Town for the term beginning January 1, 2011
or as soon after finalization of a contract as possible and extending up to December 31, 2018.
Section 5:
That a copy of the resolution shall be sent to Mary Bunkley with the City Attorney's
office in Arlington and Geoffrey M. Gay, legal counsel to CAPP.
PRESENTED AND PASSED on this 14th day of December, 2010, by a vote of 6 (six)
ayes and 0 (zero) nays at a regular meeting of the Town Council of the Town of Prosper, Texas.
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Mayor
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Town Secretary ,
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