HomeMy WebLinkAboutReso 2000-146 - Power Purchase Contracts 111
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RESOLUTION NO. 2000-146
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
REDDING AUTHORIZING THE MAYOR TO EXECUTE POWER
PURCHASE CONTRACTS AND RELATED DOCUMENTS.
WHEREAS:
1. The combination of(1) increasing demand for power and (2) the reduction of available power
from the City of Redding's (City) existing purchase power contracts with Western Area Power
Administration, Bonneville Power Administration and PacifiCorp places the City at risk to an extreme
shortage of long-term, price-certain electric energy resources for its customers in the coming years.
2. This situation, if left unaddressed, could result in an unacceptably large exposure for the City's
electric consumers to the extremes of electric energy price volatility similar to that experienced by utilities in
other parts of the state in recent months.
3. The City took steps to secure additional power supplies by issuing Requests for Proposal (RFP
No. 3368) in April 2000 for additional energy resources to supplement the City's energy resources in the
post-2004 time period.
4. Under the RFP process, several companies submitted timely proposals that met the City's RFP
criteria and were accepted for evaluation.
5. The offers to sell energy to the City which were made by the power suppliers in response to the
RFP are generally made to the City with a very short period of time for the City's acceptance of the offers
(normally less than 24 hours); therefore, it is necessary for the City to be able to act quickly to secure these
power sales
6. The ability of the City to secure such additional power supplies will provide the City with
continuing flexibility to reliably meet the City's energy needs at competitive prices as dramatic changes
continue to occur in the California electric market.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Redding deems it is
in the best interests of the City's electric customers to authorize the Mayor and the Mayor is hereby authorized
to execute a purchase power contract as recommended by the City Manager and approved as to form by the
City Attorney. Such contract would be for up to 25MW of capacity and associated energy for a 10-year term
beginning in late 2004 from the short list of RFP proposers.
I HEREBY CERTIFY that the foregoing resolution was introduced, read and adopted at an
adjourned regular meeting of the City Council on the 6`h day of September, 2000, by the following vote:
AYES: COUNCIL MEMBERS: Cibula, Kight, McGeorge, Pohlmeyer and Anderson
NOES: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: None
ABSTAIN: COUNCIL MEMBERS: None
ROBERT C. ANDERSON, Mayor
Attest: Form Approved:
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Connie Strohtnayer, City Clef W. Leonard Wingate, Ci Attorney