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03-97-Resolution-Express Concerns regarding Deregulation of the Retail Market for Electricty-04/21/1997CITY OF SANGER, TEXAS RESOLUTION NO. R03-97 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANGER, TEXAS, TO FORMALLY EXPRESS CONCERNS ABOUT LEGISLATION FOR DEREGULATION OF THE RETAIL MARKET FOR ELECTRICITY; AND ESTABLISHING AN EFFECTIVE DATE, WHEREAS, The City of Sanger through significant investment and strategic alliances, Sanger has provided its citizens with reliable electric energy at fair and equitable rates. Citizens have the right to establish fair and equitable rates through action of their which is appointed by the City Council. Local control of municipal electric operations is a fundamental right of the citizens of Sanger under present law, and, WHEREAS, Federal Law was changed in 1992 and State Law was changed by the Texas Legislature in 1995 to provide competition in the wholesale market for electricity in Texas. The benefits and problems foreseen with the implementation of the new law have yet to come about; and, WHEREAS,' bills are expected to be introduced at the 1997 Legislative session which would further restructure the electric utility industry through the introduction of competition at retail. The City Council have serious concerns that they wish to express by formal adoption of this resolution; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANGER, TEXAS: SECTION 1 The City Council of Sanger have major concerns about deregulation of the retail market for electricity. The City Council urge state and federal officials to consider deregulation proposals with extreme care, ensuring continued satisfaction of existing long-term obligations of municipally -owned electric systems serving over three million Texans. SECTION 2 The benefits of the introduction of retail deregulation must be clearly proven to be in the public interest of large consumers and small consumers alike. The consumers must understand that under retail deregulation the marketplace will determine the price, and they may not get a lower rate or even a fair rate for their electricity. This will mean the loss of local control. SECTION 3 The problems created by retail competition are several orders of magnitude greater than the problems created by wholesale competition. There are massive technical, economic, legal and regulatory problems to be overcome and solved before additional legislation is enacted. SECTION 4 A complete report of the benefits of wholesale competition should be provided to RESOLUTION R03-97 PAGE 2 the Legislature and sufficient time must be allowed for the problems associated with wholesale deregulation to be worked out before attempting to move toward further deregulation. SECTION 5 The Legislature is encouraged to consider guidelines for a study and determination of adequate and equitable compensation for utilization of existing generation, transmission, and distribution facilities when considering retail competition. A copy of this resolution will be sent as follows: a) Governor b) Lt. Governor c) Sen. Jane Nelson d) Rep. Mary Denny e) Texas Public Power Association f) American Public Power Association SECTION 6 This resolution shall be in full force and effect immediately upon its passage and approval. PASSED AND APPROVED, by the City Council of Sanger, Texas, this the 21st day of April, 1997. ATTEST: C Rosalie Chavez City Secretary