Tile
Consider/Discuss/Act on a Resolution Authorizing the Interim City Manager to Execute a Transaction Confirmation with the Energy Provider that will be Selected with the Help of the City's Energy Advisor, 5, for the Procurement of Electricity for the City Beginning April 1, 2017
Summary
MEETING DATE: December 1, 2014
DEPARTMENT: Financial Services
CONTACT: Rodney Rhoades, Chief Financial Officer
Kelvin Bryant, Investment & Treasury Manager
RECOMMENDED CITY COUNCIL ACTION:
· Approval of Resolution
ITEM SUMMARY:
· This Resolution authorizes the Interim City Manager to execute a Transaction Confirmation with the selected energy provider for the procurement of energy at a fixed cost for a period of 12 months, 24 months or 32 months beginning April 1, 2017.
BACKGROUND INFORMATION:
· The City has previously entered into an agreement with 5 to work as an advisor, consultant and energy broker on behalf of the City.
· 5 helped extend the City's previous/current contract with TXU while decreasing the City's base price per kilowatt hour (kWh) from $.0568 to $.05056 for April 1, 2014 through March 31, 2017.
· Because of the unusually mild summer recently experienced, going into an unknown winter, natural gas storage being grossly below its 5 year average and the power market hovering around all-time lows, forward market pricing is lower, allowing the City to lock in pricing below $.05 per kWh for up to 32 months.
FINANCIAL SUMMARY:
· Based on 11/20/2014 rates, this action could save the city approximately $50,000/year over the 32 month term.
· Price per kWh will be based on the refreshed market rate on day of bid, 12/2/2014.
BOARD OR COMMISSION RECOMMENDATION: N/A