HomeMy WebLinkAbout19501 - RESOLUTIONS - 4/21/1999 RESOLUTION NO. 19501
OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA
APPROVING FOUR AGREEMENTS TO FORM A NEW ENERGY ALLIANCE
BETWEEN CITY OF PALM SPRINGS ENERGY SERVICES AND NEW WEST
ENERGY, A WHOLLY OWNED SUBSIDIARY OF SALT RIVER PROJECT,
AND AUTHORIZING TERMINATION OF CERTAIN AGREEMENTS WITH
ENRON CALIFORNIA AND ENRON POWER MARKETING AND ALL
AMENDMENTS THERETO, SUBJECT TO CITY ATTORNEY APPROVAL.
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BE IT RESOLVED, by the City Council of the City of Palm Springs, California, approving four
agreements between the City Palm Springs Energy Services(PSES)and New West Energy(NWE),
and authorizing termination of certain agreements with ENRON California and ENRON Power
Marketing, and all amendments thereto, as follows:
Section 1. The City is authorized to enter into the following agreements with New West Energy
(NWE):
(a) The Municipal Utilities Services Agreement (MUSA), which serves as a
framework and coordinating document which identifies and defines all necessary
support services that New West Energy is required to provide to enable the City to
continue to serve as a public agency aggregator within its municipal boundaries to
coordinate the provision of unbundled energy and energy-related services to the City
and to its residents and businesses.
(b) The Retail Support Services Agreement,which identifies the services that New
West Energy will be required to provide,either directly of through one or more of its
affiliates, in order to service the PSES retail customers, and related implementing
agreements with Southern California Edison Company.
(c) The Financial Assurances Agreement,which addresses the allocation of certain
risks to NWE to which the City may otherwise be exposed under the Retail Support
Services Agreement and under a Power Purchase and Sale Agreement.
Section 2. The City is authorized to enter into the following agreement with the Salt River
Project:
(a) A Power Purchase and Sale Agreement between the City and Salt River Project,
a subdivision of the State of Arizona, for the purpose of obtaining wholesale
electricity for resale to the City's customers. Salt River Project,the parent company
of NWE, provides the wholesale power pursuant to Section 2.1(b) of the MUSA.
Section 3. The following agreements with ENRON California and ENRON Power Marketing,
and all amendments thereto, are hereby terminated,effective on the implementation
dates of the newly approved agreements with New West Energy and Salt River
Project, subject to the approval of such terminations by the City Attorney:
' (a)The Municipal Utilities Services Agreement with ENRON California Municipal
Services, Inc., (formerly known as Palm Springs Utility Solutions, Inc., and First
Point California, Inc.), Agreement 43764, dated 2/5/97;
(b) A Power Purchase and Sale Agreement with ENRON Power Marketing, Inc.,
Agreement#3894 dated 1/14/99; and
R19501
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Resolution-NWE
April21, 1999
(c) A Retail and Support Services Agreement with ENRON California Municipal
Services, Inc. (formerly known as Palm Springs Utility Solutions, Inc., and First
Point California, Inc.), Agreement#3894, dated 1/14/98.
ADOPTED this 21st day of Auri l , 1999.
AYES: Members Barnes, Hodges, 0den, Reller-Spurgin adn Mayor Kleindienst
NOES: None
ABSENT: None
ATTEST: CITY OF PALM SPRII GS, CALIFORNIA
Bye vvL c-�,
City Clerk City Aanager
REVIEWED AND APPROVED AS TO FORM �4