HomeMy WebLinkAboutResolutions - No. 2007-234RESOLUTION NO. 2007-234
A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING
THE CITY MANAGER AND ELECTRIC UTILITY DIRECTOR TO
PROCURE ENERGYAND CAPACITY FOR FISCALYEAR
2008-09 THROUGH FISCALYEAR 2010-11 AT A COST
NOT TO EXCEED $10 MILLION PER YEAR
WHEREAS, the City of Lodi must procure energy and capacity to economically meet its
load serving obligations to its customers for fiscal year 2008-09 with the projected amount of
energy remaining to be procured equaling approximately 23% of Lodi's total load serving
obligation; and
WHEREAS, the City of Lodi must procure energy and capacity to economically meet its
load serving obligations to its customers in the fiscal years 2009-10 and 2010-11; and
WHEREAS, to begin reducing Lodi's exposure to this market volatility, staff recommends
procurement of electricity and/or natural gas to reduce or eliminate Lodi's net open position for
fiscal year 2008-09 and the two subsequent years; and
WHEREAS, it is expected that Lodi's purchases under this Resolution could occur in
various amounts and timeframes; and
WHEREAS, Lodi's purchases under this Resolution will conform to the accepted
transaction types and other provisions of the City of Lodi Energy Risk Management Policies,
adopted January 18, 2006, by City Council Resolution No. 2006-19.
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby
authorize the City Manager or his designee to enter into contractual arrangements to procure
additional electricity and/or natural gas to reduce Lodi Electric Utility's open position to meet
load -serving obligations for fiscal year 2008-09 and the two subsequent fiscal years in
accordance with the City of Lodi Energy Risk Management Policies at a total cost not to exceed
$10 million per year, with this amount for each year reduced by Northern California Power
Agency purchases of electricity or natural gas fuel for Lodi's benefit for such year.
Dated: November 21,2007
hereby certify that Resolution No. 2007-234 was passed and adopted by the Lodi City
Council in a regular meeting held November 21, 2007, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
COUNCIL MEMBERS — Hansen, Hitchcock, Katzakian, Mounce, and
Mayor Johnson
COUNCIL MEMBERS— None
COUNCIL MEMBERS— None
COUNCIL MEMBERS— None
2007-234
&OHL
City Clerk