1998 AGN MAR 03 I12 - Laserfiche WebLink

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CaN'.. to b-10.95 CITY OF COLTON CITY COUNCIL AGENDA REPORT For Council Meeting of March 3, 1998 TO: Honorable Mayor and City Co ncil APPROVAL: Henry Garcia, City Manage ,,/ FROM: Thomas K. Clarke, Utility DirectorKv SUBJECT: Enron Master Energy Purchase and Sale Agreement DATE: February 23, 1998 BACKGROUND As the City moves into a mode to embrace and comply with the open access concept that is being developed in the State, it will be necessary to engage in a number of "open ended" power purchase agreements which allow the Utility to have a composite of suppliers. If we are going to be able to offer competitive services at the lowest possible cost, we must have an arsenal of options to present. DISCUSSION / ANALYSIS The Agreement attached to this report is nothing more than one of the various vehicles to enhance our ability to build an inventory of services that could be offered. In this instance, the Agreement is one that enables the City to package an energy sales contract to a retail customer. This can be structure to include any number of locations and service characteristics. The Agreement allows the flexibility to negotiate with a new customer and reserve energy through this Agreement if it proves to be the most economical and practical resource. ALTERNATIVES Other alternatives for power supply will always be available. This Agreement is only one of the many which may be considered. FINANCIAL There is no financial obligation associated with the approval with this Agreement. It is a transaction by transaction specific contract that only creates an obligation if and when a power supply deal is cut. Then the terms and conditions are limited to that single transaction. Each will be different depending on the needs of the customer and there could be any number of separate deals structured under this Agreement. ENVIRONMENTAL IMPACTS: None. RECOMMENDATION That the City Council approves the execution of the Enron Master Energy Purchase and Sale Agreement. Attachment: Enron Master Energy Purchase and Sale Agreement Page 1 of 1 ITEM #12