HomeMy WebLinkAbout026509 RES - 10/18/2005
RESOLlTION
RESOLVTION NO. \12 f) 509
i\ RESOLUTIOJ\ OF TilE CITY OF CORPUS CHRISTI, TEXAS,
Ai. iTlIORlZING THE SOUTH TEXAS AGGREGATION PROJECT, INC. TO
NI:GOTIATE AN ELECTRIC Sl i.PPL Y AGREEMENT FOR DELIVERIES OF
I'IFCTRICITY lFFECTlVJ: JANUARY L 2006; AUTHORIZING THE
MA YOR OR OTHER DESlCiNA TED CITY OFFICIAL TO SIGN A
C'l)NRACI WITH STAP FOR TilE CITY OF CORPUS CHRISTI'S 2006 AND.
IF PRACTICAL, 2007 aECTRlClTY NEEDS; AND COMMITTING TO
81 rDGET FOR ENERGY PLRCIIASES IN 2006 AND. IF PRACTICAL. 2007
A'\JD TO IIONOR TIll CITY OF CORPUS CHRISTI'S COMMITMENTS TO
Pl RCI-lASE POWER FOR ITS ELECTRICAL NEEDS IN 2006 AND, IF
PRACTICAL. 2007 TllROUGH STAP,
WHEREAS, the City of Corpus Christi. Texas (City) is a member of South Texas Aggregation
Project. lnc CST AP"), a nonprofit political subdivision corporation dedicated to
sccuring 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, 2003. 2004 and 2005 resulting in significant savings
off of the Price to Beat ("PTB") rate for its members; and
WHEREAS, preliminary information provided to the ST AI' Board indicates that entering into a
wholesale power contract. as distinct from a retail contract, effective January I,
2006, may provide the greatest potential for savings for ST AP members over the
regulated PTS rate: and
WHERE i\S, potential wholesale power providers desire to execute a contract with one, and
only one, entity rather than have unique contracts for each ST AP member; and
WHERE-"\S, STAP believes that the pricing opportunity window for favorable 2006 deliveries
under either a wholesale or retail agreement will be short-lived (in the October to
mid-November time period) and that STAP must be able to commit contractually
to prices within it 24-hour period in order to lock-in favorable prices regardless of
whether STAP continues its historic practice of retail agreements or enters the
wholesale market: and
WHEREAS, experiences in contracting for 2002-2005 demonstrated that Retail Electric
Providers demand immediate response to an offer and may penalize delay with
higher prices: and
WHERE."\S, it is necessary for the City to contract for a supply of electricity for 2006 and, if
practical. 2007 or at least partially revert to PTS rates; and
WHEREi\S, STAYs current delivered energy prices provide savings when measured against
the PTB rate, and PTS rates will likely continue to remain higher than prices
STAP can achieve on behalf of the City; and
02f)S09
WHEREAS, wholesale suppliers demand assurance that STAP will pay for all contracted load;
and
WHEREAS, the City 01 Corpus Christi needs to assure STAP that it will budget for energy
purchases ill 2006 alld. if rractical. 2007 and honor its commitments to purchase
pm\er for its electrical needs in 2006. and potentially 2007. through STAP.
NOW THEREFOI{E. BE II RESOLVED BY THE CITY COUNCIL OF THE CITY OF
ORPl is CHRISTI. lEXAS:
"ection 1:
rhat the STAP Board and its consultants and advisors will evaluate for the City
,dwlesalc power supply contract options for 2006 as compared to a retail electric delivery
.'ontract for 2006 and. if practical. 20m
"ection 2:
rhat the City will execute a contract with STAP that permits the ST AP Board and its
,;On'llltants and advisors to negotiate and sign the electric power agreement for the City's 2006
ll1d, if practical. 2007 electricity needs as a member of STAP and commits its 2006 and, if
:JracticaI. 2007 load pursuant to the contract recommended and approved by the ST AP Board of
: 1I recto rs
Section 3:
fhat the City will commit to purchase power to meet all of its electricity needs eligible
or c'Jmpetition pursuant to the STAP approved supply agreement and approve funds necessary
'\' pay electricity costs proportionate to the City's load under the supply agreement (whether
\holesale or retail) arranged by STAP.
Section 4'
!'nat a copy of the resolution shall be sent to Geoffrey M. Gay, legal counsel to STAP, at
I ('ongress A venue. Suite 1800. Austin. Texas 7870] ,
\TTEST:
THi;~;;T1
lfeftry Garret
Mayor
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\rmando Chapa
( il Y Secretary
\PPROVED: October 5. 2005
,
I Isa '\guilar
\sslstant City Attorney
lor Citv Attorne\
. .
, orpus Christi. fcxas
of
\..j
, h-\"
. 2005
Ihc ahO\e resolution was passed hy the following vote:
Henry Garrett
I~rcnt Chesne)
'delodv Cooper
lern Garcia
Bill Kell)
I<c~ L\, Kinnison
iohn F Marez
lesse Noyola
\clark Scott
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