RES 2003-31TOWN OF TROPHY CLUB, TEXAS
RESOLUTION NO. 2003 - 31
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, 2004; AUTHORIZING ELIGIBLE DESIGNEES TO INCLUDE
THE CHAIRMAN OF CAPP; 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 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 of the particular load to be served and the Town benefits from jointly shared experience
and collective purchasing power through CAPP; and
WHEREAS, it is necessary for the Town 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 Town.
NOW THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE
TOWN OF TROPHY CLUB, TEXAS:
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 designee may
include the Chairman of CAPP. 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 and Geoffrey M. Gay, legal counsel to CAPP, before October 8,
2003.
Section 3. This Resolution shall take effect from and after its date of passage in
accordance with law.
PASS D and APPROVED on this 15th day of September, 2003, by a vote of
ayes and nays at a regular meeting of the Town nci f the Town of Trophy Club,
Texas. 7-C ��
ATTEST:
Town Secretary, /
Town of Trophy Club, Texas
yor, Tq�vn ojTrophy Club, Texas
APPROVED AS TO FORM:
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Town Attorney,
Town of Trophy Club, Texas