1994 AGN DEC 06 I12 - Laserfiche WebLink

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CITY OF COLTON AGENDA REPORT For Council Meeting of December 6, 1994 TO: Honorable Mayor, City Council, and City Manager FROM: Thomas K. Clarke, Electric Utility Director Date: 11/29/94 SUBJECT: AUTHORIZE THE MAYOR TO SIGN AN ENABLING AGREEMENT BETWEEN THE CITY OF COLTON AND LOS ANGELES DEPARTMENT OF WATER AND POWER FOR CAPACITY AND ENERGY TRANSACTIONS BACKGROUND The electric utility continually pursues capacity and energy sources which are priced at a rate that lowers the total cost of electricity for the customers on the electric system. Even if the City never purchases any power from another entity, contracts must be in place so when energy is available at a competitive price, we can make the purchase. STATEMENT OF THE PROBLEM Before any transaction can take place between Colton and another utility, the terms and conditions of the potential transaction must be agreed to. The execution of the Enabling Agreement sets out those terms and conditions. ALTERNATIVES The execution of the Enabling Agreement does not commit the City in any fashion, but merely allows it to buy economically priced capacity and energy when it may be available. The alternative would be to not execute the agreement and face the possibility that more expensive electricity would have to be purchased to meet the needs of the retail customers served by Colton. FINANCIAL IMPACT There are no financial impacts as a result of the request to execute the Enabling Agreement except that expenses for purchased power may be lowered. Page 1 of 2 Item No.