Title
Resolution - A Resolution of the City Council of the City of Mansfield, Texas, Authorizing Deputy City Manager Joe Smolinski or Deputy City Manager Peter Phillis to Negotiate and Execute an Electric Supply Agreement with an Electrical Services Rep or Broker For Deliveries Of Electricity Effective January 1, 2018
Requested Action
Staff requests that City Council approve the attached Resolution, authorizing staff to execute the contractual agreements necessary to enter into a contractual agreement for the supply of electricity for all municipal accounts.
Recommendation
The City of Mansfield’s current contract with TCAP expires on December 31st of 2017, in the past aggregation afforded the City the greatest opportunity in the electric market. The City’s current and growing load profile makes us desirable in the market with a standalone load.
Description/History
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.
Staff is reviewing electricity pricing from several other retail electric providers and brokers including TXU, Texzon, TEA, and Priority Power Management, all have competitive rates indicative of the market, which is below the not to exceed price of 4.1 kWh TCAP has stated.
Electric rates are tied to natural-gas futures that change every fifteen minutes making it difficult for any REP or broker to hold a rate beyond 24 hours; the attached resolution will authorize staff to enter an electric agreement when staff feels it has the best possible scenario for the City.
Justification
Staff recommends that City Council authorize Deputy City Manager, Joe Smolinski or Deputy City Manager, Peter Phillis to execute the necessary documents to secure an electricity contract for...
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