HomeMy WebLinkAbout025504 RES - 09/30/2003RESOLUTION
A RESOLUTION OF THE CITY OF CORPUS CHRISTI, TEXAS,
AUTHORIZING
THE C TY MANAGER OR THE CITY MANAGER'S
DESIGNEE TOEXEC JTE AN ELECTRIC SUPPLY AGREEMENT
PURSUANT TO C~
THE )NTRACT TO BE SIGNED BY SOUTH TEXAS
AGGREGATION PRO ECT, INC. (STAP) FOR DELIVERIES OF
ELECTRICITY EFFECtiVE JANUARY 1, 2004; AUTHORIZING
ELIGIBLE DESlGNEES~O INCLUDE THE CHAIRMAN OF STAP
WHEREAS, the City of Corpus Christi, Texas (City) is a member of South Texas
Aggregation Project Inc. (STAP), a nonprofit political subdivision corporation
dedicated to securing electric power for its members in the competitive retail
market; and
WHEREAS, STAP negotiated favorable contract terms and a reasonable
commodity price for delivered electricity in 2002 and 2003 for its members; and
WHEREAS, STAP 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, STAP believes thatthe pricing opportunity window for favorable
2004-2005 deliveries will be short-lived (in the October to mid-November time
period) and that STAP 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 a particular load to be served and the City benefits
from jointly shared experience and collective purchasing power through STAP;
and
WHEREAS, it is necessary for the City to contract for a supply of electricity for
2004 or at least partially revert to PTB rates; and
WHEREAS, STAP's current delivered energy prices provide savings when
measured against PTB, and PTB rates likely will continue to remain higher than
prices STAP can achieve on behalf of the City.
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NOW, THEREFORE, BE Il RESOL.VED BY THE CITY COUNCIL OF THE ClIY OF
CORPUS CHRISTI, TEXAS:
SECTION '1. That the City Man{~ger or the City Manager's designee is authorized to
execute an electric power agreement under the contract approved and recommended
by the STAP Board of Directorslwithin 24 hours of the Board's approval and
recommendation, The designe~ may include the Chairman of STAP. The contract may
be for a twelve (12) to twenty-fo{Jr (24) month time frame, effective January 1, 2004.
SECTION 2. A copy of this ReSOlution shall be sent to Geoffrey M. Gay, legal counsel
for STAP, before October 10, 2003.
ATTEST:
THE CITY OF CORPUS CHRISTI
Armando Chapa
City Secretary
Approved: September 24, 2003
H:\LEG-DIR\Lisa\RES\Sep 30 STAP resolution.doc
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Corpus Christi, Texas
~rj day of ,2003
The above resolution was passed by the following vote:
Samuel L. Neal, Jr.
Brent Chesney
Javier D. Colmenero
Melody Cooper
Henry Garrett
Bill Kelly
Rex A. Kinnison
Jesse Noyola
Mark Scott
H:\LEG-DIR\Lisa\RES\Sep 30 STAP resolution.doc