HomeMy WebLinkAboutReso 2013-112RESOLUTION NO. 2013-112
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING CONTINUATION OF
ELECTRICITY COMMODITY PURCHASES FROM SHELL
ENERGY AND AUTHORIZING THE CITY MANAGER TO
EXECUTE ALL DOCUMENTS IN CONJUNCTION WITH THE
PURCHASES
WHEREAS, the California Public Utilities Commission began implementation of
Assembly Bill 1890 in 1998 to make the generation of electricity more competitive in California
through the creation of "Direct Access Service"; and
WHEREAS, Direct Access allows commercial, industrial, and agricultural customers to
purchase electricity from athird-party Electric Service Provider, instead of from the local
Investor-Owner Utility; and
WHEREAS, Direct Access allows these customers to potentially negotiate better
electricity commodity rates or higher renewable energy power mixes from the open market; and
WHEREAS, City of Chula Vista has four electricity accounts that are under Direct
Access Service with Shell Energy; and
WHEREAS, under the contract with Shell Energy, the City "locks-in" electricity
procurement rates for certain time periods through a Confirmation Letter to minimize utility cost
fluctuations; and
WHEREAS, the City's current Confirmation Letter and associated rates are expiring; and
WHEREAS, the new rates are similar to last year and approximately 40% lower than
historical commodity prices.
NOW, THEREFORE, the City Council of the City of Chula Vista does hereby resolve
that it:
1. Approve continuation of electricity commodity purchases from Shell Energy, and
2. Authorize the City Manager, or his designee, to execute an up to 3-year
Confirmation Letter with rates up to $65.00 per Megawatt Hour.
Presented by
ichard A. H ins
Director of Public Works
Approved as to form by
w
Gl R. Go ins
City ~~~
Resolution No. 2013-112
Page No. 2
PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista,
California, this 11th day of June 2013 by the following vote:
AYES: Councilmembers: Aguilar, Bensoussan, Ramirez, Salas and Cox
NAYS: Councilmembers: None
ABSENT: Councilmembers: None
Cheryl Cox, Ma or
ATTEST:
~/ IO/S.S.~__.L
Donna R. Norris, CMC, City Clerk
STATE OF CALIFORNIA
COUNTY OF SAN DIEGO
CITY OF CHULA VISTA
I, Donna R. Norris, City Clerk of Chula Vista, California, do hereby certify that the foregoing
Resolution No. 2013-112 was duly passed, approved, and adopted by the City Council at a
regular meeting of the Chula Vista City Council held on the 11th day of June 2013.
Executed this 11th day of June 2013.
Donna R. Norris, CMC, City Clerk