R-01-10-11-12B2 - 10/11/2001 RESOLUTION NO. R-01-10-11-12B2
WHEREAS, under Senate Bill 7 of the 76th Legislature (1999)
the Texas Legislature deregulated the purchase of electric power in
the State of Texas effective January 1, 2002 , and
WHEREAS, the Texas Local Government Code, Chapter 303 ,
Section 303 . 001 authorizes political subdivisions to join together
to create a political subdivision corporation to aggregate their
power loads as customers to purchase power, and
WHEREAS, the City of Round Rock ( "City" ) , in order to
aggregate it ' s power load with other cities, joined the
Governmental Aggregation Project, Inc . ( "GAP" ) , a political
subdivision corporation aggregator registered with the Texas Public
Utility Commission ( "PUC" ) , and
WHEREAS, GAP is in the process of negotiating a competitive
Electrical Power Purchase Contract on behalf of its members to
purchase electric power with several Retail Electric Providers
( "REP" ) , all of which are properly registered with the PUC, and
WHEREAS, in order for the City to timely execute an electric
power supply contract with a REP to obtain the best price in the
volatile energy market, this Resolution authorizes the execution of
such a contract by the City to purchase power from a Retail
Electric Provider, as recommended by GAP, provided the terms of
this Resolution are complied with, Now Therefore
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BE IT RESOLVED BY THE COUNCIL OF THE CITY OF ROUND ROCK,
TEXAS,
Section 1 : The Mayor may execute, on behalf of the City, a
contract to purchase power between the City and a Retail Electric
Provider in accordance with the terms of this Resolution.
Section 2 : The Mayor may only execute an electric power supply
contract ( "Contract" ) with an REP in the event the following
conditions are strictly complied with:
(i) the term of the Contract is no less than one year and no
more than two years;
(ii) that either:
(a) the price of the power on a KWH basis is at least
twelve percent (12%) less than the "price to beat"
price in the City' s service area, as determined by
the Public Utility Commission of Texas, if such
information is available at the time of the
execution of the Contract ; or
(b) if "price to beat" information is not available,
then the price per KWH shall be competitive as to
other known KWH charges, considering the terms of
the Contract and the competitive KWH Contract
terms;
(iii) the Contract provides for no liability to the City,
except as to the electrical power used by the City; and
(iv) that the REP recommend by GAP was selected in a
competitive process, in which the recommended REP offers
the most competitive and beneficial Contract to the City
when considering the following factors :
(a) price per KWH;
2
(b) the amount, if any, of premiums to be paid by the
City for using either less or more electrical power
than its historic power usage; and
(c) ability to provide detailed, consolidated billing
for the City and to provide current electrical load
data for the City.
Section 3 : This Resolution shall take effect upon adoption.
The City Council hereby finds and declares that written notice
of the date, hour, place and subject of the meeting at which this
Resolution was adopted was posted and that such meeting was open to
the public as required by law at all times during which this
Resolution and the subject matter hereof were discussed, considered
and formally acted upon, all as required by the Open Meetings Act,
Chapter 551 , Texas Government Code, as amended.
RESOLVED this lith day of October, 2001 .
4ROB . STLUKA, JR. UMayor
City of Round Rock, Texas
A ST:
JCWNE LAND, City Secretary
3
DATE: October 5, 2001
SUBJECT: City Council Meeting—October 11, 2001
ITEM: 12.13.2. Consider a resolution granting authority to the Mayor to execute
an electrical power purchase contract with a Retail Electric
Provider to provide electric power to the City.
Resource: Bob Bennett, City Manager
David Kautz, Finance Director
History: In June, 2001, the City joined the Governmental Aggregation Project,
Inc., (GAP). The GAP is comprised of member cities and exists for
the purpose of bidding electric supply purchases and negotiating
electric supply contracts on behalf of the members.
The GAP is in the final stages of negotiating the power supply
contracts and receiving final pricing from Retail Electric Providers.
Pricing will reflect market conditions at a specific point in time and, if
it is in the City's best interest to participate in the GAP, the City must
be positioned to timely execute an electric power supply contract.
Funding: N/A (This item does not bind the City to any agreement or course of
action; there is no cost associated with this item).
Cost: N/A
Source of Funds: N/A
Outside Resources: Fox, Smolen, and Arnold Consulting (formerly CCG), consultant to
the GAP
Impact/Benefit: A deregulated electric power supply market place is intended to
provide competitive electric power supply costs to users
Public Comment: N/A
Sponsor: N/A