RES 942RESOLUTION NO.
A RESOLUTION 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 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,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 rate-making 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 proposed changes would make the Northwest vulnerable to the same
kind of market manipulation practiced by Enron and some other power traders on the West Coast
in 2000 and 2001,and
WHEREAS,the increased costs and vulnerability to market abuse would lead to higher
electricity rates for Northwest consumers,who already have suffered from 40-60 percent rate
increases over the past year,and
WHEREAS,there are more effective,less expensive ways than forming RTO West and
imposing standard market design to strengthen the Northwest power system,
Resolution No.^Page 2
NOW,THEREFORE,BE IT RESOLVED that the City Council of Camas,Washington,
emphatically urges the Bonneville Power Administration not to participate in RTO West,and
BE IT FURTHER RESOLVED,that the City Council of Camas,Washington,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 risks and costs.
PASSED by the Council and APPROVED by the Mayor day of July,2002.
SIGNED :
Mayor
ATTEST:
Clerk