RES 2008-26TOWN OF TROPHY CLUB, TEXAS
RESOLUTION NO. 2008-26
A RESOLUTION OF THE TOWN OF TROPHY CLUB, TEXAS,
AUTHORIZING THE CITIES AGGREGATION POWER PRO..IECT, INC.
(CAPP) TO NEGOTIATE AN ELECTRIC SUPPLY AGREEMENT FOR
DELIVERIES OF ELECTRICITY AND NECESSARY, RELATED
SERVICES EFFECTIVE JANUARY 1, 2009; AUTHORIZING CAPP TO
ACT AS AN AGENT ON BEHALF OF THE TOWN TO ENTER INTO A
CONTRACT FOR ELECTRICITY; APPROVING CAPP CONTRACTING
WITH FPL ENERGY AND DIRECT ENERGY AND AUTHORIZING THE
CHAIRMAN OF CAPP TO EXECUTE AN ELECTRIC SUPPLY
AGREEMENT FOR DELIVERIES OF ELECTRICITY EFFECTIVE
JANUARY 1, 2009; COMMITTING TO BUDGET FOR ENERGY
PURCHASES AND TO HONOR THE TOWN'S COMMITMENTS TO
PURCHASE POWER THROUGH CAPP FOR ITS ELECTRICAL NEEDS
BEGINNING JANUARY 1, 2009 THROUGH DECEMBER 31, 2013.
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 111 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 expires December 31, 2008;
and·
WHEREAS, CAPP members must secure power supplies for 2009 or revert to
high price standard contracts and independently shop for a power contract; and
WHEREAS, the CAPP Board of Directors is currently considering indicative
retail energy prices that point to favorable pricing for the five year period ending
December31,2013;and .
WHEREAS, power providers desire to execute a contract with one, and only
one, entity rather than have unique contracts for each CAPP member; and
WHEREAS, CAPP believes that the pricing opportunity window for favorable
2009 deliveries will be short-lived and that CAPP 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 CAPP load since 2002 demonstrated
that providers demand immediate response to an offer and may penalize delay with
higher prices; and
WHEREAS, aggregated rates contracted during favorable pricing periods are
likely to be lower than prices obtained by the Town contracting individually during the
same time period; and
WHEREAS, suppliers demand assurance that CAPP will pay for all contracted
load; and
WHEREAS, the Town needs to 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, 2009, and extending through
December 31,2013; and
WHEREAS, CAPP intends to continue to contract with both FPL Energy (power
supply) and Direct Energy (billing, administrative and other customer services); and
WHEREAS, the current contractual relationships between CAPP and FPL
Energy and Direct Energy have been beneficial and cost effective for CAPP members
and the Town.
NOW THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE
TOWN OF TROPHY CLUB, 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
to contract for the electric power supply and related, necessary services for the Town
for a term to begin January 1, 2009 and extending up to December 31, 2013.
Section 2. That the Town approves CAPP contracting with FPL Energy and
Direct Energy for the supply of electric power and related, necessary services for the
Town for a term to begin January 1, 2009 and extending up to December 31,2013.
Section 3. That the Chairman of CAPP is hereby authorized to sign a
Commercial Electric Service 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.
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 1,2009 and extending up to December 31,2013.
.,
Section 5. That a copy of the resolution shall be sent to Mary Bunkley with the
Town Attorney's office in Arlington and Geoffrey M. Gay, legal counsel to CAPPo
~ Nick Sanders, Mayor
Town of Trophy Club, Texas
ATTEST:
£:~-----Town Attorney, Patricia A. Adams
Town of Trophy Club, Texas
CERTIFICATION
TOWN OF TROPHY CLUB
STATE OF TEXAS
October 21,2008
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""r"',n"""',ij~k,, Town Secretary for the Town of Trophy Club, Texas do
"i1¥"that the attached document: Resolution Number 2008-28 of
,,~t:,irophy Club, Texas, is a true and correct copy of the original
,'c: "",~,flOc5l.Jrnerits on file in the Town of Trophy Club and was in effect on ;e~~~'tV20;.2'008.