HomeMy WebLinkAbout027262 RES - 05/15/2007RESOI;I-TION NO.
A RESOLI JIOIN OF iHE CITY OF CORPUS CHRISTI, TEXAS,
AI FHORIZING 11IE SOl 'fH TEXAS AGGREGATION PROJECT, INC. TO
NEGOTIATE AN ELECTRIC SUPPLY AGREEMENT FOR DELIVERIES OF
ELECTRICITY EFFECTIVE JANUARY 1, 2008; AUTHORIZING THE CITY
MANAGER TO SIGN A CONTRACT WITH STAP FOR THE CITY OF
CORPUS CHRISTI'S 2008 AND. IF ECONOMICALLY FEASIBLE, 2009
Fi.FCTRICITY NEEDS: AND COMMITTING TO BUDGET FOR ENERGY
PURCHASES IN 2008 ANI), IF ECONOMICALLY FEASIBLE, 2009 AND TO
HONOR .I1 --IE (ITY OI CORPUS CHRISTI'S COMMITMENTS TO
PURCHASE POWER FOR ITS ELECTRICAL NEEDS IN 2008 AND, IF
ECONOMICALLY FEASIBLE. 2009 THROUGH STAP.
WHEREAS, the City of Corpus Christi. Texas (City) is a member of South Texas Aggregation
Project. Inc. ("STS\P'), a nonprofit political subdivision corporation dedicated to
secur;ng electric pov, er for its members in the competitive retail market; and
WHEREAS, STA' negotiated fatiorabic contract terms and a reasonable commodity price for
delivered electricity t'or STAP members since 2002, resulting in average savings
to STAP of thirty percent off of the Price to Beat ("PTB") rate; and
WHEREAS, STAP believ es that the pricing opportunity window for favorable 2008 deliveries
under either a wholesale or retail agreement will be short-lived and that STAP
must he able 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 Pro\ iders demand immediate response to an offer and may penalize delay
with higher prices. and
WHEREAS, STAP's aggregated rate contracted during favorable pricing periods is likely to
he 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 Corpus Christi needs to assure STAP that it will budget for energy
purchases in 2008 and potentially 2009 and honor its commitments to purchase
powe- for its electrical needs in 2008 and potentially 2009 through STAP.
027262
1
NOW, THEREFORE, BE 11 RESOLVED BY THE CITY COUNCIL OF THE CITY
Of CORP1'S CHRISTI. TI XAS
Section 1.
That the STAP Board and its consultants and advisors are authorized to negotiate on
behalf or SLAP members and will evaluate for the City various supply contract options for 2008
and. if economically feasible 2000 and to recommend to the STAP Board a retail electric
delivery contract for 2008 ind potentially 2009.
Section 2:
Thai the City will 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 2008
and, if economically feasible, 2009 electricity needs as a member of STAP and commits its 2008
and, if economically feasible, 2009 load pursuant to the contract recommended and approved by
the STAP Board of Directors.
Section 3:
That the City will commit too purchase power to meet all of its electricity needs eligible
for competition pursuant to the STAP approved supply agreement and approve funds necessary
to pay electricity costs proportionate to the City's load under the supply agreement (whether
wholesale or retail) arranged by ST, .\P.
Section 4:
That a copy of the resolution n shall be sent to Geoffrey M. Gay, legal counsel to STAP, at
816 Congress Avenue. Suite 1900, Austin, Texas 78701.
PRESENTED AND PASSED on this ' day of @.Lc , 2007, by a vote
of ayes and r nays at a regular meeting of the City Couneil of the City of Corpus
Christi, "Leyas.
ATTEST-, I"HE C Y OF CORPUS CHRISTI
APL/44..,‘ AA/
Armando Chapa ti -nry Garr
City Secretary Mayor
Approved as to form: Mai° 3, 2007
Lisa Aguilar, Assistant Cite Attorney
For City Attorney
Corpus Christi, Texas
of
, 2007
The above resolution was passed by the following vote:
Henry Garrett
Brent Chesney
Melody Cooper
Jerry Garcia
Bill Kelly
Rex A. Kinnison
John E Marez
Jesse Noyola
Mark Scott
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