HomeMy WebLinkAbout028543 RES - 04/13/2010RESOLUTION
ENDORSING CERTAIN LEGISLATIVE CHANGES AS RECOMMENDED
BY "STAP" 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 Corpus Christi is a member of South Texas Aggregation Project,
Inc. ("STAP"), 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, STAP'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 Advisory 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 STAP that enhance electric
competition, implement the original intent of SB 7, and reduce costs to the City and its
residents.
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STAP Resolution 03162010
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INDEXED
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
CORPUS CHRISTI, TEXAS:
Section 1. The City urges reforming the PUC and ERGOT 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 ERGOT. 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.
Section 2. A copy of the resolution will be sent to the elected lawmakers representing
the City's interests in the Texas House and Senate and to the legal counsel of STAP.
STAP Resolution 03162010
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ATTEST:
Armando Chapa
City Secretary
APPROVED: 16th day of March, 2010.
R. Ja�ing
First As istant City Attorney
For City Attorney
STAP Resolution 03162010
THE CITY OF CORPUS CHRISTI
Joe A ame
Mayor
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Corpus Christi, Texas
/3 of
, 2010
The above resolution was passed by the following vote:
Joe Adame
Chris N. Adler
Brent Chesney
Larry R. Elizondo, Sr.
Kevin Kieschnick
Priscilla Leal
John E. Marez
Nelda Martinez
Mark Scott
STAP Resolution 03162010
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