HomeMy WebLinkAboutResolution No. 2010-024
CITY OF THE COLONY, TEXAS
RESOLUTION NO. 2010-024
A RESOLUTION OF THE CITY OF THE COLONY, 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 The Colony is a member of Cities Aggregation Power Project, Inc.
("CAPP"), a non-profit organization created by cities throughout Texas to secure
affordable energy for its members in the deregulated electric market; and
WHEREAS, affordable and reliable power means economic development for our cities and a
better standard of living for our citizens; 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, competition has failed to develop in the deregulated electric market because
certain power generation companies own or control enough generation capacity
to exercise market power to the detriment of customers and non-affiliated retail
electric providers; and
WHEREAS, alleged market power abuse inquiries conducted by the Public Utility
Commission ("PUC") are hampered by the lack of adequate resources because
the parties hurt by the illegal activity, like cities, are not allowed to participate in
the investigations; and
WHEREAS, the managers at the Electric Reliability Council of Texas (ERCOT) have failed to
adequately manage expenses and operations. The most obvious example is
ERCOT's implementation of a nodal market - a project now four years behind
schedule and expected to cost at least eight times original estimates; and
WHEREAS, the Sunset Review Commission is expected to recommend legislative reforms for
the PUC and ERCOT; 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.
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THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
THE COLONY, TEXAS, THAT:
1.
The City urges reforming the PUC and ERCOT in such a way as to enhance competition in the
deregulated market, to promote consumer protection and to encourage the sale of affordable electricity.
Specifically, the City urges the Texas Legislature, as it considers changes recommended by the Sunset
Advisory Commission, to adopt reforms consistent with the following:
• 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 require it to harmonize its pursuit of
competition with the protection of consumers of electricity.
• As a condition of conducting business within Texas, competitive Retail Electric Providers
(REPS) should be required to include among their offers one standard electricity package that
has PUC-approved terms and conditions.
• 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 board as well as on
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 pre-approve all debt financing by ERCOT.
II.
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.
PRESENTED AND PASSED on this 22"d day of March, 2010, by a vote of lO ayes and
nays at a regular meeting of the City ,Vgt+i8f the City of The Colony, Texas.
F
w oe 1~ ou y, Mayor
r stie Wilson, City Secretary
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