HomeMy WebLinkAbout1995-062-05/02/1995-COMMUNITY BENEFITS ELECTRIC UTILITY UTILITY DEREGULATION RESOLUTION 95-62
OF THE COUNCIL OF THE CITY OF FORT COLLINS
REAFFIRMING THE COMMUNITY BENEFITS OBTAINED THROUGH OWNERSHIP OF
THE FORT COLLINS ELECTRIC UTILITY, A PUBLIC POWER AGENCY
WHEREAS, the citizens of Fort Collins voted to create the Fort Collins Electric Utility, a
public power agency, in April 1935; and
WHEREAS,the electric utility was created as an enterprise,functioning as a business which
is owned by the community and under direction of the Fort Collins City Council; and
WHEREAS, the benefits provided to the community by the Fort Collins Electric Utility
include, but are not limited to,the following:
A. Low cost power. The Fort Collins Electric Utility's residential rates are 5th lowest
in the State out of 54 public and private electric utilities, and average overall 23.6%
less than the local investor owned utility. This allows millions of dollars per year of
additional disposable income to remain in the community.
B. A reliable power supply. The Fort Collins Electric Utility's customers enjoy the most
reliable service in Northern Colorado.
C. Effective management for the publics' interests with regard to the long-term energy
needs of the City and its citizens.
D. Responsiveness to local values. Examples include, but are not limited to:
Clean environment through the purchase of clean power from hydro
facilities and power plants with scrubbers to preserve air quality.
Aesthetics and safety through an undergrounding program for all existing
above ground primary and secondary electric lines to be completed by year
end 2004.
Conservation and energy efficiency through numerous Energy Services and
Demand Side Management programs.
Responsive customer service from representatives accessible within the
community.
Design, construction and maintenance practices developed to provide long
term value and system reliability.
Accountability to its owners, the Fort Collins customers, rather than stock
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holders residing in other parts of the country.
E. A financial return to the community to help support City governmental activities
which would otherwise require increased property tax and/or sales tax. The Fort
Collins Electric Utility contributed over $3.3 million in 1994 in cash and services
to the general City government.
WHEREAS, the electric utility industry is in the process of deregulation; and
WHEREAS, the full extent of the deregulation process is not fully known, thus creating
uncertainty in the industry; and
WHEREAS, the Fort Collins City Council believes the deregulation process will ultimately
result in a competitive, market based industry with similarities to the deregulation that has taken
place in the natural gas industry and the telecommunications industry; and
WHEREAS, Fort Collins City Council believes that the Fort Collins Electric Utility should
be encouraged to make whatever changes are necessary and appropriate to be competitive in order
to continue to provide the community benefits of a public power agency; and
WHEREAS, examples of changes that may be necessary include:
Marketing and advertising to retain the customer base.
Flexible pricing (market pricing) and services.
Partnering, contracting and joint ventures to meet customer energy needs.
Flexibility to work with Human Resources, Purchasing and Finance to develop
administrative support systems appropriate for a competitive business environment.
NOW, THEREFOR BHfiIRESOI,VED BY THE COUNCIL OF THE CITY OF FORT
COLLINS, as follows:
Section 1. The City Council affirms the primary criteria for evaluating the future
effectiveness of the Fort Collins Electric Utility shall include, but not be limited to:
a) Competitively priced power for customers.
b) Reliable power supply from the cleanest sources feasible.
c) Leadership in the innovative delivery of energy services.
d) Responsiveness to local values and expectations.
e) Financial return to the City through payment-in-lieu of taxes.
Section 2. That the City Manager, Utilities Director and staff are encouraged to seek out
and implement processes, procedures and business practices necessary to insure a competitive,
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flexible and entrepreneurial position as the electric industry is deregulated. Said changes should
be consistent with the criteria identified in Section 1.
Section 3. That the City Manager, Utilities Director and staff are further encouraged to
submit any proposed Charter or Code changes they deem appropriate to the City Council for
consideration, as necessary, in order to maximize the community values identified in Section 1.
Passed and adopted at a regular meeting of the Council of the City of Fort Collins held this
2nd day of May, A.D. 1995.
ayor
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City Clerk
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