Title
Authorizing the City of Philadelphia to enter into purchase obligations for the delivery of electric supply for use by facilities owned and leased by the City, including agreements that obligate payments for delivery of electric supply in the fiscal years 2011, 2012, 2013 and 2014, subject to certain terms and conditions.
Body
WHEREAS, The passage in 1996 by the Commonwealth of Pennsylvania of the "Electricity Generation Customer Choice and Competition Act," 66 Pa. C.S. ยง 2801 et seq., made it possible for the City of Philadelphia ("City") and all consumers of electricity to have direct access to the competitive market for the generated supply of electricity; and
WHEREAS, The termination of rate caps on December 31, 2010 for the Philadelphia Region has required the City to investigate the various ways the City may purchase in the competitive market to achieve price stability, lower costs and reliability; and
WHEREAS, The City consumed approximately 650,000 Megawatt Hours (MWhs) of electricity in the City's Fiscal Year ("FY") 2009; and
WHEREAS, The price of the deregulated and volatile energy portion of electric supply in the Philadelphia region in recent years has ranged from a low of $40 per MWh (2003) to a high of $119 per MWh (2008); and
WHEREAS, That range of prices would yield a wide range of annual electric energy supply costs from a low of $26 million to a high of over $77 million; and
WHEREAS, The City has determined that the purchase of electricity supply through a Licensed Supply Provider ("LSP") provides the best approach to managing electricity supply to achieve low costs, price stability and reliability; and
WHEREAS, An LSP is a business entity licensed by the Commonwealth of Pennsylvania and authorized to operate in the PECO Energy electricity service territory, and can act as the City's agent in securing favorable fixed payment prices for electricity supply for future delivery ("Fixed Rate Purchases") to facilitie...
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