Title
Resolution - A Resolution of the City Council of the City of Mansfield, Texas, Authorizing the Texas Coalition for Affordable Power, Inc. (TCAP) to Negotiate an Electric Supply Agreement for Five Years for Deliveries of Electricity Effective January 1, 2018; Authorizing TCAP to Act as an Agent on Behalf of the City to Enter into a Contract for Electricity; Authorizing Deputy City Manager, Joe Smolinski or Deputy City Manager, Peter Phillis to Execute an Electric Supply Agreement for Deliveries of Electricity Effective January 1, 2018 and Committing to Budget for Energy Purchases in 2018 through 2022 and to Honor the City’s Commitments to Purchase Power for its Electrical Needs in 2018 through 2022 through TCAP
Requested Action
Staff requests that City Council approve the attached Resolution, authorizing staff to execute the contractual agreements necessary to enter into a (5) five-year contractual agreement for the supply of electricity to all municipal accounts.
Description/History
The City of Mansfield’s current contract with TCAP expires on December 31st of 2017. In this resolution, TCAP is being authorized to negotiate a fixed price for all electricity consumed by municipal accounts for the five year period following the expiration of the City's existing contract. The new contract would cover the following period: January 1, 2018 through December 31, 2022.
The attached Resolution does not obligate Mansfield to enter into a contract, it simply authorizes staff to do so if the negotiated rate is acceptable.
Justification
TCAP is offering a price per kWh "not to exceed price of 4.1", which is 3.345 cents lower than the current rate of 7.445 cents per kWh. The exact price is not yet known, as TCAP will watch the market carefully and secure a fixed price when it believes that the rate represents the best possible scenario for the cities it represents.
Even if TCAP were to secure a rate of 4.1 cents per kWh, the savings to the City would be dramati...
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