HomeMy WebLinkAbout1995-163-11/21/1995-COLORADO ASSOCIATION ELECTRIC POWER MUNICIPAL UTILITIES RETAIL WHEELING RESOLUTION 95-163
OF THE COUNCIL OF THE CITY OF FORT COLLINS
APPROVING AND ADOPTING THE COLORADO ASSOCIATION
OF MUNICIPAL UTILITIES GUIDING PRINCIPLES REGARDING
RETAIL WHEELING OF ELECTRIC POWER
WHEREAS,the City of Fort Collins owns and operates its own electric utility, known as the
City of Fort Collins Light and Power; and
WHEREAS,the citizens of the City govern the Fort Collins Light and Power through their
City Council; and
WHEREAS, the City Council is concerned about the many public policy implications for
Fort Collins citizens as the retail wheeling of electric energy is considered in Colorado; and
WHEREAS,principles deemed prudent for guiding the debate over retail wheeling have been
developed by the Colorado Association of Municipal Utilities of which the City of Fort Collins is
a member; and
WHEREAS,Fort Collins Electric Board and the Council's Legislative Review Committee
support these principles as serving the best interests of Fort Collins citizens.
NOW,THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT
COLLINS,that the Colorado Association of Municipal Utilities Retail Wheeling Principles, attached
hereto as Exhibit "A"and incorporated herein by this reference, are hereby approved and adopted
to preserve and protect Fort Collins citizens' interests as the retail wheeling of electric energy is
considered in Colorado.
Passed and adopted at a regular meeting of the Council of the Ci Fort Collins held this
21st day of November, A.D. 1995.
i
Mayor
ATTEST_
City Clerk
EXHIBIT A Colorado
a Association of
Municipal
Utilities
COLORADO ASSOCIATION OF MUNICIPAL UTILITIES-
RETAIL WHEELING PRINCIPLES
The Colorado electric utility industry has always delivered high-quality, reliable power at
comparatively low rates. The 29 municipally-owned electric systems in Colorado,which supply
electric service to over 560,000 citizens, are concerned about the impact that retail wheeling may
have on our state and this industry. While the Colorado Association of Municipal Utilities
(CAMU) favors the availability of low cost electric supply to all customers,there are several
issues that must be resolved before retail wheeling can become a service of benefit to Colorado
consumers and the Colorado electric industry.
The electric utility industry is currently very unsettled with active debate being carried on about a
number of serious issues, including FERC jurisdiction over transmission access,the potential
disposition of federal hydro power facilities, mergers and acquisitions, etc. Therefore, specific
legislation mandating retail wheeling is premature. It is imperative, due to the broad public policy
implications,that state officials and affected interests study the benefits, risks, implications, and
impacts of retail wheeling on the customers of Colorado guided by the following principles:
1. In order to promote regional equity,the creation of retail competition in Colorado
must not occur until similar competitive retail-markets are created in adjacent states.
2. We oppose a state mandate requiring municipal utilities to implement retail wheeling.
In order to preserve local control, municipal utilities must be given a local control
choice option to determine the extent to which retail wheeling may be implemented
and the*ales-governing implementation.
3. Customers that may be unable to take advantage of retail wheeling opportunities,
including residential, commercial and small industrial customers, must be protected
from adverse rate effects.
4. Full recovery of the costs associated with the ownership of the distribution system
that delivers the electric supply to the retail wheeling customer must be allowed.
These costs include operation and maintenance, depreciation, system upgrades,
administrative costs, franchise fees, payments in lieu of franchise fees and taxes,
return on investment, and the costs associated with government mandated programs,
including for example, low-income energy assistance, demand side management, and
environmental programs.
(OVER)
5. The constitutional and statutory right of consumer-owned utilities to establish their
own rates must be retained.
6. Rates, terms and conditions for retail wheeling service offered by municipally-owned
utilities must be established by the local governing body. The provisions of C.R.S.
Article 40-3.5-101, et seq. must apply to wheeling rates for service outside
municipal boundaries.
7. The responsibility of the retail wheeling customer to secure back-up power must be
clarified to ensure the integrity of the system for the protection of the other
customers receiving service over the distribution system.
8. There must be a method of recovering the costs associated with power supply assets,
generation fuel costs, power purchase contracts, production costs, and other costs,
that are "stranded" when a sales customer switches to retail wheeling service.
9. The extent of the obligation, or lack thereof, on the part of the distribution utility to
provide sales service to former retailing wheeling customers who request to return to
sales service must be defined, including the opportunity for full cost recovery.
10. For reasons of health, safety, aesthetics and the rational and efficient use of the
public right-of-way, any retail competition legislation must prohibit the unnecessary
and economically wasteful duplication of distribution facilities. Customers must not
be allowed to bypass the transmission and distribution facilities of the local utility.
11. Industry participants must be prohibited from engaging in unfair competitive
practices, such as discriminatory or predatory pricing.
12. The distribution utility must retain the right to meter and bill all retail wheeling
customers.
13. All industry sectors must be subject to identical requirements concerning open
records.
14. All industry sectors must have comparable access to the transmission and generation
markets.
Dated 9/19/95