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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April 26, 2010 The Honorable Kevin Eltife Texas Senate P. 0. Box 12068 - Capitol Station Austin, Texas 78711 Dear Senator Eltife: A 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 82°d legislative session th of Paris supports a number of PUC and ERCOT reforms intended to improve competition in t encourage savings for our cirizens. The City of Paris is a member of Cities Aggregation Power Project ("CAPP"). Tog ther CA political subdivision corporation South Texas Aggregation Project ("STAP"), have more t an 150 subdivisions, purchasing approximately 1.2 billion kWh annually. CAPP has served as a vehi le to inc to navigate the deregulated market and bargain for the best electricity rates an contract term . 'the Public Utility g problems in the i regarding these in 2011. The City ilated market and and its sister nber political ~ cities' ability As an active market participant, CAPP is in the unique position to identify problems hat hav developed in the deregulated marketplace. CAPP wants what all Texans want: a competitive electric market hat wor s. Unfortunately, it has been our experience that the 1999 electric restructuring law has failed to live up to it initial p omise. Repeated market power abuses have driven up consumer prices. And while residential rates have de lined si ce last year, they still remain higher than those in neighboring states and well above those one would expect f om a m rket with healthy competition. The attached resolution reflects the City's support for legislative proposals relati g to th Sunset Advisory Commission's examination of the PUC and ERCOT. These proposals, if implemente , can ntribute to the establishment of a truly healthy electric market where consumers can save money and comp tition c flourish. Such a market - one where power remains affordable and reliable - will result in more economic evelop ent for our ciries 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-1 deregulated electric market. CAPP members understand what works right for consumers, ; We share your goal of creating 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, TEXAS 75461-9037 9 (903) 785-7511 • FAX (903) you that hsider the Sunset Wledge about the ~ needs to change. brm is possible. 8 ?