HomeMy WebLinkAbout01-005 CC ResolutionRESOLUTION NO. 01-05
A RESOLUTION OF THE CITY COUNCIL OF THE CiTY OF
TEMECULA URGING IMMEIDATE INTERVENTION BY THE
FEDERAL GOVERNMENT AND STATE GOVERNMENT TO
REFORM THE CALIFORNIA ELECTRIC ENERGY MARKETPLACE
THE CITY COUNCIL OF THE CITY OF TEMECULA DOES RESOLVE, DETERMINE AND
REQUEST AS FOLLOWS:
WHEREAS, in the 1990's the California Public Utilities Commission and the State Legislature
acted to deregulate the electric utility industry in the State of California; and
WHEREAS, the transition and restructuring of this decades-old structure of area-specific
monopolies has been managed by the California Public Utilities Commission under legislative
mandate, mainly from Assembly Bill 1890 and Senate Bill 90; and
WHEREAS, the objective of electric market deregulation was to bring competition in
electricity supply to the State and benefits of reduced costs and improved services to businesses
and consumers; and
WHEREAS, the results of electric industry deregulation was supposed to produce lower rates
and improved customer services, unfortunately, no such results have been achieved in California;
and
WHEREAS, before California deregulated its electricity industry in 1998, three investor owned
utilities delivered 80% of the electricity consumed in the State; and
WHEREAS, as a part of the restructuring process, these utilities have been forced to sell
their power plants to private companies, with the new owners now selling their electricity back to
these same utilities through the marketplace at what have become dramatically inflated prices that
are causing economic hardship and dislocation to businesses and consumers alike; and
WHEREAS, since deregulation, California has attracted only a handful of new suppliers, and
that lack of competition has compounded shortages of electricity; and
WHEREAS, without intervention by the Federal government, Governor and State Legislature,
millions of Californians will face dramatic increases in power costs in the near future, in addition to,
adverse impacts from the disruption in commerce caused by power outages and energy cost spikes.
NOW THEREFORE, BE IT RESOLVED that the City Council of the City of Temecula urges
the Federal government, Governor and State Legislature to prevent the complete meltdown of the
California electric marketplace through immediate intervention and reform actions. Further, the City
Council believes the following principles should guide the electricity marketplace reform and
restructuring:
1. There must be a reliable supply of electricity.
2. Both the price and .supply of electricity must be determined under a stable
framework. -Consumers have to be protected from price volatility.
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Electricity must be affordable.-California's economic future cannot continue to be
held hostage to market manipulation.
Further, be it resolved that the immediate short term resolution of the electdc utility cdsis requires the
California Public Utilities Commission to enact an emergency rate stabilization program that will
ensure consumer protection from price volatility and enable the state's electric utilities to maintain
system and service re iabi ity.
PASSED, APPROVED, AND ADOPTED, by the City Council of the City of Temecula at a
regular meeting held on the 9th day of January 2001.
ATTEST:
J~eS/CMC ,,
STATE OF'CALIFORNIA
COUNTY OF RIVERSIDE
CITY OF TEMECULA
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Jeff Comerchero, Mayor
I, Susan W. Jones, City Clerk of the City of Temecula, Califomia, do hereby certify that
Resolution No. 01-05 was duly and regularly adopted by the City Council of the City of Temecula at
a regular meeting thereof held on the 9th day of January, 2001, by the following vote:
AYES: 5
NOES: 0
ABSENT: 0
COUNCILMEMBERS:
COUNCILMEMBERS:
COUNCILMEMBERS:
Naggar, Pratt, Roberts, Stone, Comerchero
None
None
...City Clerk
;,~;Res(~.001-05 2