RES 2002-29TOWN OF TROPHY CLUB
RESOLUTION NO. 2002-29
A RESOLUTION OF THE TOWN OF TROPHY CLUB, TEXAS,
AUTHORIZING THE TOWN MANAGER OR HER 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; PROVIDING
THAT A COPY OF THIS RESOLUTION SHALL BE SENT TO
THE CITY OF ARLINGTON ATTORNEY'S OFFICE; AND
PROVIDING AN EFFECTIVE DATE.
WHEREAS, the Town of Trophy Club, Texas (Town) 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, 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 Town benefits from jointly shared experience and collective
purchasing power arranged through CAPP; and
WHEREAS, it is necessary for the Town 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 TOWN COUNCIL OF
THE TOWN OF TROPHY CLUB, TEXAS, THAT:
Section 1. That the Town Manager or her 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 contract may be
for a 12 to 24 month time frame.
Section 2. A copy of the resolution shall be sent to Mary Bunkley with the City
Attorney's office in Arlington before September 30, 2002.
Section 3. That this Resolution shall become effective from and after its date of
passage in accordance with law, and it is so resolved.
PASSED AND APPROVED by the Town Council -4 the T6wnprTrqby Club, Texas,
this 16th day of September, 2002. ,,f'/
/
W
TownSecretary
Town of Trophy Iub, Texas
[SEAL]
APPROVED AS TO FORM:
Town Attorney
Town of Trophy Club, Texas
own of Trow Club, Texas
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