HomeMy WebLinkAboutRESO 9623160714 jb 6053822
Resolution No. 9623
Resolution of the Council of the City of Palo Alto Approving an Assignment,
Assumption, and Consent Agreement with Mercuria Energy America Inc. and
EDF North American Trading LLC
R E C I T A L S
A. In October of 2014, JP Morgan Chase & Company sold to J.P. Morgan Ventures Energy
Corporation to Mercuria Energy Gas Trading LLC.
B. In September 2015 the Palo Alto City Council adopted Resolution 9545 approving the
Assignment, Assumption, and Consent Agreement with J.P. Morgan Ventures Energy
Corporation and Mercuria Energy Gas Trading LLC.
C. As of August 1, 2016, Mercuria Energy Gas Trading LLC was merged with Mercuria
Energy America Inc. (Mercuria)
D. Mercuria has been an active counterparty transacting gas commodity and gas
commodityrelated services with the City.
E. The City purchases gas for the portfolio at month and daily index based prices and
changes retail rates monthly to reflect those market prices.
F. In August 2016, Mercuria sold its West Coast gas trading business to EDF Trading North
American LLC (EDF).
G. EDF is not publically rated and is a subsidiary of EDF Trading Limited, an investment
grade company.
The Council of the City of Palo Alto RESOLVES as follows:
SECTION 1. The Council approves the Assignment, Assumption and Consent
Agreement (Assignment Agreement) with Mercuria and EDF.
SECTION 2. The Council waives the application of the investmentgrade credit rating
requirement of section 2.30.340(c) of the Palo Alto Municipal Code, which applies to energy
companies that do business with the City.
SECTION 3. The Council delegates to the City Manager or his designee, the authority
to execute on behalf of the City the Assignment Agreement with Mercuria and EDF effectively
assigning the Base Contract for Sale and Purchase of Natural Gas (Master Agreement) with
Mercuria to EDF.
DocuSign Envelope ID: EF279659-CA70-485D-8A80-6CD58F322F41
160714 jb 6053822
SECTION 4. Th his Assignment, Assumption and Consent
Agreement does not meet the definition of a project under the California Environmental Quality
Act (CEQA), pursuant to Public Resources Code Section 21065.
INTRODUCED AND PASSED: August 29, 2016
AYES: BERMAN, BURT, DUBOIS, FILSETH, HOLMAN, KNISS, SCHARFF, SCHMID,
WOLBACH
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
Senior Deputy City Attorney City Manager
Director of Utilities
Director of Administrative Services
DocuSign Envelope ID: EF279659-CA70-485D-8A80-6CD58F322F41
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