HomeMy WebLinkAbout2705 Resolution RESOLUTION NO. T�_
OPPOSING PROPOSED CHANGES TO THE
NORTHWEST ELECTRICITY SYSTEM.
WHEREAS, the Federal Energy Regulatory Commission (FERC) is calling for changes
in the Northwest electricity system, including creation of a Regional Transmission Organization
(RTO) and imposition of a standard market design; and
WHEREAS, the Bonneville Power Administration has joined with the region's investor-
owned utilities to organize a Regional Transmission Organization called RTO West; and
WHEREAS, the Pasco City Council has reviewed information provided by both
proponents and opponents of the RTO West proposal; and
WHEREAS, while RTOs may be necessary in some parts of the country, RTO West is
unnecessary in the Pacific Northwest because BPA owns more than 75 percent of the
transmission grid and provides reliable transmission service on an open-access basis; and
WHEREAS, RTO West would diminish public control over the Northwest electricity
system by shifting authority from Northwest regional forums and elected public officials to an
appointed RTO West board; and
WHEREAS, there is no evidence that RTO West would bring about reduced energy
prices while it is clear that RTO West would cause Northwest electricity-system costs to increase
as a result of substantial start-up and operating costs, new tax liability, and changes in
transmission system operation policies; and
WHEREAS, standard market design would replace current structures for providing
electricity to the public on an at-cost basis with a system seeking to rely on market rates, and
would force utilities into the short-term, price-volatile market and away from the predictable and
low-cost long-term contracts that have been the norm in the Northwest; and
WHEREAS, the increased costs and vulnerability to market abuse would certainly lead to
higher electricity rates for our community, which has already suffered from a 40 percent rate
increase over the past year; and,
WHEREAS, there are more effective, less expensive ways to strengthen the Northwest
power system rather than forming RTO West and imposing standard market design;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PASCO,
WASHINGTON, DO RESOLVE AS FOLLOWS:
Section 1. The City Council of the City of Pasco emphatically urges the Bonneville
Power Administration not to participate in RTO West.
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Section 2. The City Council of the City of Pasco calls on the Federal Energy
Regulatory Commission not to impose an RTO and standard market design on the Northwest,
and to allow our region to develop an alternative approach to strengthening the transmission
system that addresses our unique needs and does not expose Northwest citizens to increased
financial risks.
PASSED by the City Council of the City of Pasco at its regular meeting this 4`h day of
November, 2002.
CITY OF PASCO:
Michael L. Garrison, Mayor
ATTEST:
Catherine D. Seaman Leland B. Kerr
Deputy City Clerk City Attorney