10-Move to approve a resolution that supports CAPP"s legislative position during the sunset review process for the PUC and ERCOT

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Apri126, 2010 The Honorable Mark Homer Texas House of Representatives P. 0. Box 2910 Austin, Texas 78768-2910 Dear Representative Homer: On behalf of the City of Paris, Texas, I am writing in support of proposed legislative r Commission (PUC) and the Electric Reliability Council of Texas (ERCOT) intended to address deregulated electricity market. As you know, recommendations by the Sunset Advisory Cc two organizations are expected to form the basis of bills during the 82nd legislative session th of Paris supports a number of PUC and ERCOT reforms intended to improve competition in t encourage savings for our citizens. The City of Paris is a member of Cities Aggregation Power Project ("CAPP"). Tc political subdivision corporation South Texas Aggregation Project ("STAP"), have more subdivisions, purchasing approximately 1.2 billion kWh annually. CAPP has served as a ve} to navigate the deregulated market and bargain for the best electricity rates an contract ter As an active market participant, CAPP is in the unique position to identify problems deregulated marketplace. CAPP wants what all Texans want: a competitive electric market it has been our experience that the 1999 electric restructuring law has failed to live up to it: market power abuses have driven up consumer prices. And while residential rates have de still remain higher than those in neighboring states and well above those one would expect i competition. The attached resolution reflects the City's support for legislative proposals relat Commission's examination of the PUC and ERCOT. These proposals, if implementi establishment of a truly healthy electric market where consumers can save money and comf market - one where power remains affordable and reliable - will result in more economic and a better standard of living for our citizens. I also want to offer CAPP, as a resource, as your eyes and ears in the market, whi: Advisory Commission's review of the PUC and ERCOT. CAPOP has gained important first-] deregulated electric market. CAPP members understand what works right for consumers, ~ We share your goal of crearing the best possible market for Texas. Working together, we kno The City would very much appreciate your support regarding these issues. Sincerely, Kevin Carruth /ap City Manager Enclosure P.O. BOX 9037 • PARIS, TD(AS 75461-9037 9 (903) 785-7511 • FAX (903) the Public Utility g problems in the i regarding these in 2011. The City lated market and ther CA PP and its sister an 150 member political e to inc ase cities' ability hat hav developed in the hat wor s. Unfortunately, initial pi -omise. Repeated lined si ce last year, they om a m rket with healthy g to th Sunset Advisory , can ntribute to the rition c flourish. Such a evelop ent for our cities you that isider the Sunset vledge about the needs to change. )rm is possible. 8 .l