HomeMy WebLinkAbout026819 RES - 06/06/2006A RESOLL TION OF THE CITY OF CORPUS CHRISTI, TEXAS,
THORIZING THE SOUTH TEXAS AGGREGATION PROJECT, INC.
t- STAP ") TO NEGOTIATE AN ELECTRIC SUPPLY AGREEMENT FOR
DELIVERIES OF ELECTRICITY EFFECTIVE JANUARY 1, 2007;
THORIZING THE CITY MANAGER OR DESIGNEE TO SIGN A
('ONTRACT WITH STAP FOR THE CITY OF CORPUS CHRISTI'S 2007
%.ND, IF ECONOMICALLY FEASIBLE, 2008 ELECTRICITY NEEDS;
kND COMMITTING TO BUDGET FOR ENERGY PURCHASES IN 2007
MND, IF ECONOMICALLY FEASIBLE, 2008 AND TO HONOR THE
('ITY OF CORPUS CHRISTI'S COMMITMENTS TO PURCHASE
POWER FOR ITS ELECTRICAL NEEDS IN 2007 AND, IF
FCONOMICALLY FEASIBLE, 2008 THROUGH STAP.
WHEREAS, the City of -orpus 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 for STAP members since 2002. resulting in average savings
of thirty percent off of the Price to Beat ("PTB ") rate: and
WHEREAS, STAP belie\ es that the pricing opportunity window for favorable 2007 deliveries
under either a wholesale or retail agreement will he short-lived and that STAP
must be ablc to commit contractually to prices within a 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 STAP load since 2002 demonstrated that Retail
Electric Providers demand immediate response to an offer and may penalize delay
with higher prices, and
WHEREAS, S"IAP's current delivered energy prices provide savings when measured against
the PTB rate, and aggregated rates contracted during favorable pricing periods
are likely to be lower than prices obtained by the City contracting individually
during the same time period: and
WHEREAS, power suppliers demand assurance that STAP will pay for all contracted load; and
WHEREAS, the City of 1 'orpus Christi needs to assure STAP that it will budget for energy
purchases in 2007 and, i f practical, 2008 and honor its commitments to purchase
power for its electrical needs in 2007. and potentially 2008, through STAP.
BE 11 RESOI_ VED BY THE` (IJ\ COl1NCIL OF THE CITY OF CORPUS CHRISTI,
!I:XAS-
Section 1:
��,r`,q 1 9
hat the ST AP Board and its consultants and advisors are authorized to negotiate on
behalf t 1 STAP mernhers and will evaluate for the City wholesale and retail power supply
contract options for 2007 as compared to a retail electric delivery contract for 2007 and, if
practical. 2008
Section 2:
i hat the City Manager or designee is authorized to execute a contract with STAP that
permits the STAP Board and its consultants and advisors to negotiate and sign the electric power
agreement for the City's 2007 and, if practical, 2008 electricity needs as a member of STAP and
omrnits its 2007 and, it practical. 2008 load pursuant to the contract recommended and
approved by the STAP Board of Directors
Section : ;:
hat the City will Commit to purchase power to meet all of its electricity needs eligible
for competition pursuant to the STAP approved supply agreement and approve funds necessary
'o pay electricity costs proportionate to the City's load under the supply agreement (whether
wholesale or retail) arranged by ST AP
Section 4:
hat a copy of the resolution shall be sent to Geoffrey M. Gay, legal counsel to STAP, at
816 Congress Avenue. Suite 1900. Austin. Texas 78701.
kTTEST: THE I Y OF CORPUS CHRISTI
T
Armando ('hapa my Garret
«ity Secretary Mayor
APPROVED: June 7. 2006
Lisa Aguilar .
Assistant City Attorney for City Attorney
(Iorpus -hristi. Texas
of
, 2006
he above resolution was passed by the following vote:
Ilenry Garrett
Brent Chesney
Melody Cooper
lerry Garcia
Bill Kelly
Rex A. Kinnison
ohn Mare/
Jesse Novola
Mark Scott
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