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RESOLUTION N0. 2009-012 <br />A RESOLUTION OF CITY COUNCIL OF THE CITY OF PARIS, TEXAS, <br />ENDORSING CERTAIN LEGISLATIVE CHANGES TO ENHANCE THE <br />COMPETITIVE ELECTRIC MARKET SUPPORTED BY CITIES <br />AGGREGATION POWER PROJECT, INC.; MAKIIVG OTHER FINDINGS A1VD <br />PROVISIONS RELATED TO THE SUBJECT; AND DECLARING AN <br />EFFECTIVE DATE. <br />WHEREAS, the City is a member of Cities Aggregation Power Project, Inc. <br />("CAPP"), a non-profit organization created by cities throughout Texas to secure affordable <br />energy for its members in the deregulated electric market; and <br />WHEREAS, affordable and reliable power means economic development for our <br />cities and a better standard of living for our citizens; and <br />WHEREAS, by deregulating the retail electric market, Senate Bill 7 of 1999 ("SB <br />7") intended to allow competitive forces to drive down the price of electricity; and <br />WHEREAS, CAPP's seven-year experience with the deregulated market, including <br />negotiating power contracts with several different retail electric providers, indicates that <br />the Texas electric retail market has failed to develop into a truly competitive market as <br />envisioned by the Texas Legislature and that prices are higher, not lower, after <br />deregulation; and <br />WHEREAS, competition has failed to develop in the deregulated electric market <br />because certain power generation companies own or control enough generation capacity to <br />exercise market power to the detriment of customers and non-affiliated retail electric <br />providers; and <br />WHEREAS, alleged market power abuse inquiries conducted by the Public Utility <br />Commission ("PUC") are hampered by the lack of adequate resources because the parties <br />hurt by the illegal activity, like cities, are not allowed to participate in the investigations; <br />and <br />WHEREAS, residential customers in Texas communities are unable to obtain <br />lower power prices that may be available to them through bulk purchasing because current <br />law makes the creation of citizen aggregation groups unworkable; and <br />WHEREAS, the Electric Reliability Council of Texas ("ERCOT") is expected to <br />spend at least $660 million to implement a nodal market in Texas, an unproven market <br />design program that is several years behind schedule and several hundred million dollars <br />over budget; and <br />WHEREAS, the City supports all legislative initiatives that promote a truly healthy <br />electric market where competition can flourish and consumers can save money; and <br />