HomeMy WebLinkAboutRESOLUTIONS-1997-010-R-97I
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2/10/97
10-R-97
A RESOLUTION
In Support of the Principal Issues
to be Resolved in Restructuring the Electric
Utility Industry in Illinois
WHEREAS, the Electric Utility Industry is undergoing significant restructuring
at the Federal and State level; and
WHEREAS, the State of Illinois has joined with other states to study the impact
of deregulation and industry restructuring; and
WHEREAS, Governor James Edgar of Illinois had appointed a Technical
Advisory Group (TAG) composed of individuals and groups interested and experts
knowledgeable in the electric utility area; and
WHEREAS, TAG set forth a set of principal issues which they believed needed
to be resolved in restructuring the electric utility industry in Illinois and reforming its
regulation; and
WHEREAS, the Evanston Energy Sub -Committee and the Evanston Energy
Commission has reviewed the TAG recommendations and agree with slight modification the
principal issue set forth therein;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF EVANSTON, COOK COUNTY, ILLINOIS:
SECTION 1: That the TAG principles set forth in Appendix A are agreed to
• in principle by the City of Evanston.
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SECTION 2: That the Illinois legislature is encouraged to move forward with •
due diligence to address this critical issue for the citizens of the State of Illinois.
SECTION 3: That this Resolution shall be in full force and effect from and
after the date of its passage and approval in the manner required by law.
Mayor
ATTEST:
City Clerk
Adopted:., i� , 1997
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APPENDIX A
Areas of Agreement with the Technical Advisory Group
Retail direct access can and should be allowed. It is a question of when, not whether.
2. All participants have a compelling interest in maintenance of safe and reliable electric
service and a utility infrastructure that is capable of providing it.
3. There must be a speedy transition period and transition mechanisms to enable electric utilities
to move from the current (and Historic) method of regulation to a system that is largely
market and competition driven.
4. Evanston does not support legislatively -imposed stranded cost recovery mechanisms.
5. If there are regulatorily-imposed stranded cost recovery mechanisms, utilities should mitigate
their potential stranded costs.
6. Restructuring and regulatory reform must be accomplished in a way that results, ultimately,
in all customers, whether aggregated or not, having the opportunity to benefit from the
competitive market. Further, if there is a transition period during which customers become
eligible to choose direct access at varying points in time, other benefits should be provided to
those customers not yet allowed direct access during that period.
7. Aggregation of customer loads, particularly by smaller customers, to access the competitive
market must be allowed. Local units of government must be given the option to become
aggregators.
Electric utilities must provided non-discriminatory transmission and delivery service to all
suppliers and customers at a price based on the cost of service.
9. All electric power suppliers and non -utility suppliers must follow the technical and
operation rules, policies, procedures, and practices needed to maintain the integrity of the
integrated transmission and distribution system.
10. A method must be developed to fund universal service and other social policy objectives
that is competitively neutral and spreads the burden among all market participants.
11. Taxes applicable to Illinois electric utilities -including at a minimum the Public Utilities
Revenue Tax -must be modified or replaced with competitively neutral taxes applicable to
all market participants that maintain(or increase) the states' and local government's
revenues from this source.
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