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HomeMy WebLinkAboutCity Council Resolutions (R-10-3212)-03/23/2010RESOLUTION R-10-3212 A RESOLUTION OF THE CITY OF COLLEYVILLE TEXAS, ENDORSING CERTAIN LEGISLATIVE CHANGES RELATING TO THE SUNSET REVIEW OF THE TEXAS PUBLIC UTILITY COMMISSION AND THE SPECIAL PURPOSE REVIEW OF THE ELECTRIC RELIABILITY COUNCIL OF TEXAS WHEREAS, the City of Colleyville is a member of Cities Aggregation Power Project, Inc. (CAPP), anon-profit organization created by cities throughout Texas to secure affordable energy for its members in the deregulated electric market; and WHEREAS, by deregulating the retail electric market, Senate Bill 7 of 1999 ("SB 7") was intended to allow competitive forces to drive down the price of electricity; and WHEREAS, CAPP's eight-year experience with the deregulated market, including negotiating power contracts with several different retail electric providers, indicates that the Texas electric retail market has failed to develop into a truly competitive market as envisioned by the Texas Legislature; and WHEREAS, the Sunset Advisory Commission is expected to recommend legislative reforms for the Public Utility Commission (PUC) and Electric Reliability Council of Texas (ERGOT); and WHEREAS, the City supports all such legislative reforms that promote a truly healthy electric market where competition can flourish and consumers can save money; and WHEREAS, the City endorses efforts proposed by CAPP that enhance electric competition, implement the original intent of SB 7, and reduce costs to the City and its residents. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF COLLEYVILLE, TEXAS: Sec. 1. THAT the City of Colleyville urges reforming the PUC and ERGOT in such a way as to enhance competition in the deregulated market, to promote consumer protection and to encourage the sale of affordable electricity. Sec. 2. THAT the City of Colleyville urges the Texas Legislature, as it considers changes recommended by the Sunset Advisory Commission, to adopt reforms consistent with the CAPP recommendations to the Sunset Advisory Commission, specifically outlined in the attached Exhibit "A". r+ Resolution R-10-3212 Page2of2 Sec. 3. THAT a copy of the resolution shall be sent to the elected lawmakers representing the City's interests in the Texas House and Senate and to, the legal counsel of CAPP. ~~ AND IT IS SO RESOLVED. APPROVED BY A VOTE OF ~ AYES, ~ NAYS AND a ABSTENTIONS ON THIS THEE K~DAY OF 2010. ATTEST• ynthia Singleton, TRMC, CMC City Secretary CITY OF COLLEYVILLE David Kelly Mayor EXHIBIT "A" CAPP recommendations to the Sunset Advisory Commission: • All generators, regardless of size, should explicitly be barred from the unlawful exercise of market power. • Entities such as municipalities, commercial customers or retail electric providers harmed by wholesale market abuse should be given explicit standing to participate in market power abuse enforcement actions brought by the PUC. • Fines should be increased for market abuses in such a way that the PUC can order full restitution to the market, market participants, or parties injured by the violation. • Activities defined as market abuse by the Federal Energy Regulatory Commission should be prohibited. • The statutory purpose of the PUC should be modified to ensure that the agency harmonizes its pursuit of competition with the protection of electric consumers. • As a condition of conducting business in Texas, Retail Electric Providers ("REPs") should be required to include among their offers one standard electricity package that has PUC-approved terms and conditions. Such standard offer products will ensure that REPs compete based on price, not on customer confusion. • The number of consumer representatives on the ERCOT board should be increased from the current three members, to six. • The Office of the Comptroller should be assigned a seat on the ERCOT board and on as appropriate budget oversight panels within ERCOT. The Comptroller's office should be given access to all ERCOT contracting material and be charged with conducting a bi-annual performance review of ERCOT. • The PUC should be required to provide prior approval of all debt financing by ERCOT.