R-3135-2-13RESOLUTION NO. 3135-2-13(R)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ALLEN, COLLIN
COUNTY, TEXAS, ENDORSING CERTAIN LEGISLATIVE ACTION IN THE
REGULAR SESSION OF THE 83RD TEXAS LEGISLATURE TO ENHANCE THE
COMPETITIVE ELECTRIC MARKET AND SYSTEM RELIABILITY AND TO
PROTECT THE TRADITIONAL ROLE OF CITIES IN THE REGULATORY
PROCESS.
WHEREAS, the City of Allen, Texas is a member of Texas Coalition for Affordable Power ("TCAP"), a
non-profit political subdivision created by cities throughout Texas to secure affordable electric energy for its
members in the deregulated electric market; and
WHEREAS, TCAP pools the energy needs of its more than 160 political subdivision members to negotiate
favorable prices and contract terns for the purchase of approximately 1.3 billion kilowatt hours annually; and
WHEREAS, affordable and reliable power means economic development for the City and a better standard
of living for our citizens; and
WHEREAS, the City supports legislative initiatives that promote a healthy electric market where competition
can Flourish and electric customers can save money; and
WHEREAS, the City endorses the legislative agenda of TCAP and opposes legislative initiatives that would
' fundamentally alter the ERCOT energy market or the traditional role of cities in the regulatory process.
NOW, THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ALLEN,
COLLIN COUNTY, TEXAS, THAT:
Section 1. The City supports the introduction and adoption of legislation in the Regular Session of the 83rd
Texas Legislature that preserves the traditional role of cities in the regulatory process and stimulates a
competitive and fairly priced deregulated electric market. Specifically, the City supports legislation that will
address the following issues:
• The Legislature make no changes that change the traditional role of cities in the regulatory process
including original jurisdiction and reimbursement of reasonable rate case expenses.
• The Legislature make no statutory changes that would lead to a reduction in revenues paid by public
utilities as franchise fees for rental of public rights-of-way.
• The Legislature facilitate and encourage public/private partnerships between cities and electric
generation developers in creating small-scale (not to exceed 50 MN) power plants capable of rapidly
meeting peak power needs.
• The Legislature recognize that "smart meters" are under-utilized with regard to encouraging and
incentivizing reductions in energy consumption during peak periods and that the regulated
transmission and distribution utilities that own the "smart meters" be allowed to re-enter the retail
' electric market to the extent they offer regulated rate plans designed to incent reductions in peak
energy consumption.
• The Legislature preclude foreign ownership of electric distribution assets and make it clear that,
notwithstanding any other provision in law, home role cities, individually or collectively, shall be
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permitted to own and operate electric distribution assets so long as said cities are not involved in retail
sales of electricity.
• The Legislature resist any efforts to transform the energy -only ERCOT market into a capacity market
which would increase the price of electricity by artificially inflating generator profits.
• The Legislature enhance protections against anti-competitive activities in the wholesale market and
require the Public Utility Commission ("PUC") to reform its rules related to Voluntary Mitigation
Plans and allow cities and other interested parties to participate in review of such plans.
• The Legislature mandate that the PUC and market participants provide consumer education regarding
the relationship between time of use, cost of energy production and transmission, and the price paid
by consumers.
• The Legislature require the PUC to establish certain uniform products that must be offered by all
retail electric providers ("REPs") and to establish new rules governing the powertochoose.org and
powertosavetexas.org websites that will better inform retail customers of complaints against REPS
and better educate customers regarding the economic and market benefits of reducing demand during
peak periods.
Section 2. A copy of this resolution shall be sent to the elected lawmakers representing the City's interests in
the Texas House and Senate and to Randolph C. Moravec, Executive Director of TCAP, 15455 Dallas
Parkway, Addison, Texas 75001.
Section 3. This resolution shall take effect immediately upon its passage.
DULY PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF ALLEN, COLLIN
COUNTY, TEXAS ON THIS 12TH DAY OF FEBRUARY, 2013.
APPR VED:
Step a Terrell, MAYOR
APPROVED AS TO FORM: ATTEST:
� /, / Q _ _ _ k
Peter G. Smith, TY ATTORNEY #4 S Iley B. George, TRMC, CITY SECRETARY
Resolution No. 3135-2-13[R), Page 2