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kv <br />CITY OF COLTON <br />AGENDA REPORT <br />For the Council Meeting <br />TO: <br />Honorable Mayor and City Council <br />APPROVAL: <br />Len Wood, Interim City Manager a LX) <br />FROM: <br />Thomas K. Clarke, Utility Director—*.-/ <br />SUBJECT: <br />Enron Master Energy Purchase and Sale Agreement <br />DATE: <br />December 9, 1997 <br />BACKGROUND <br />As the City, moves into a mode to embrace and comply with the open access concept that is being <br />developed in the State, it will be necessary to engage in -a number of *open-endecr power purchase <br />agreements which allow the Utility to have a composite of suppliem If we are going to be able to offer <br />competitive services at the lowest possible cost, we must have an arsenal of options to present. <br />DISCUSSION / ANALYSIS <br />The Agreement attached to this report. is nothtIng more than one of the various vehicles to enhance our <br />ability to build an inventory of services that could be offered. In this instance,, the Agreement is one that <br />enables the City to package anenergy sales contract to a retail customer. This can be structured to <br />include any number of locations and service characteristics. The Agreement allows the flexibility to <br />negotiate with a new customer and reserve energy through this Agreement if it proves to be the most <br />economical and practical resource. <br />ALTERNATIVES <br />Other alternatives for power supply will always be available. This Agreement is only one of the many <br />which maybe considered. <br />FINANCIAL IMPACT <br />There is no financial obligation associated with the appmval of this Agreement. It is a transaction -by - <br />transaction specific contract that only creates, an obligation if and when a power supply deal is <br />negotiated. Then the terms and conditions are limited to that single transactilon. Each will be different <br />depending on the needs of the customer and there could be any number of separate deals structured <br />under this Agreement. <br />ENVIRONMENTAL IMPACT <br />None. <br />RECOMMENDATION <br />That the City Council approves the execution of the Enron Master Energy Purchase and Sale <br />Agreement. <br />Attachment: Enron Master Energy Purchase and Sale Agreement <br />Page I of I <br />Item# 2 <br />