Title
Consider/Discuss/Act on a Resolution Authorizing the City Manager to Execute a New or Renewal Agreement for the Procurement of Electricity
Summary
COUNCIL GOAL: Financially Sound Government
MEETING DATE: April 4, 2017
DEPARTMENT: Financial Services
CONTACT: Mark Holloway, Chief Financial Officer
Trudy Mathis, Finance Director
Kelvin Bryant, Investment & Treasury Manager
RECOMMENDED CITY COUNCIL ACTION:
• Approval of Resolution
ITEM SUMMARY:
• This Resolution authorizes the City Manager to enter into a new contract or renewal agreement with the bid winning energy provider for the procurement of energy at a fixed cost for a period up to 60 months beginning December 1, 2021.
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 our previous/current contract with TXU while decreasing our base price per kilowatt hour (kWh) from $.04999 to $.04144 for December 1, 2019 through November 30, 2021.
• Due to natural gas storage being grossly below its five year average and the power market hovering around all-time lows, forward market pricing is lower, allowing the City to currently lock in pricing below $.04 per kWh for up to 60 months.
FINANCIAL SUMMARY:
• Based on March 24, 2017 quotes, this could save the City approximately $140,000/year over the 60 month term.
• Price per kWh will be based on the refreshed market rate on day of bid.
BOARD OR COMMISSION RECOMMENDATION:
• N/A