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CITY OF COLTON <br />AGENDA REPORT <br />For the Council. Meeting of- 4=1 <br />TO: <br />Honorable Mayor and City Council <br />APPROVAL: <br />Len Wood, Interim City Manager <br />FROM: <br />Thomas K. Clarke, Utility Director l` c <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-ended' power purchase <br />agreements which allow the Utility to have a composite of suppliers. 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 nothing 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 an energy 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 may considered. <br />FINANCIAL IMPACT <br />There is no financial obligation associated with the approval 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 transaction. 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_1 of 1 <br />Item # 3 <br />