2010-050 RES ENDORSING CERTAIN LEGISLATIVE CHANGES RELATING TO THE SUNSET REVIEW

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RESOLUTION NO. 2010-050 A RESOLUTION OF CITY COUNCIL OF THE CITY OF PARIS, 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; MAKING OTHER FINDIIVGS AND PROVISIOIVS RELATED TO THE SUBJECT; AND DECLARING AN EFFECTIVE DATE. WHEREAS, the City of Paris 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") 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 to modify the electric competition, implement the original intent of SB 7 and reduce costs to the City and its residents.