HomeMy WebLinkAboutres2001-031WHATCOM COUNTY COUNCIL AGENDA BILL NO. 2001 - 202
CLEARANCES Date Date Received in Council Office Agenda Date Assigned To
Odg. Dept.: County Council
06113/2001
(C OE p JJ 2 rfl�
` II V iS ltd
JUN 13 2001
WHATCOM COUNTY
COUNCIL
06/1212001
Full Council
Division Head:
Dept. Head:
Prosecutor.
Dude
Executive:
SUBJECT:
Resolution regarding stabilizing Electrical Energy Prices
ATTACHMENTS
SUMMARY STATEMENT:
FRdated County Contract #County Contract N: Should the Clerk schedule a hearing? (YIN N Requested Date:
Resolution regarding stabilizing Electrical Energy Prices
RECOMMENDED MOTION (for final action):
COUNCIL ACTION TAKEN:
2001 - 202 6/12/2001: Approved 5 -2, Imhof, Crawford opposed, Res.
12001 -031
Related File Numbers: Ordinance or Resolution Number (this item only):
ReS A 2001- 031
Eledrir l Energy Resolution
RESOLUTION NO. 2001 -031
PROPOSED BY: Hoaa
SPONSORED BY: Hoag
INTRODUCED: June 12, 2001
SUPPORTING THE NATIONAL ASSOCIATION OF COUNTIES RESOLUTION ON
STABILIZING ELECTRICAL ENERGY PRICES
WHEREAS, on June 12, 2001, the Whatcom County Council discussed the energy
problems facing our region at the present time; and
WHEREAS, the Whatcom County Council agrees with the concerns raised by the
National Association of Counties concerning the energy issue.
NOW, THEREFORE, BE IT RESOLVED by the Whatcom County Council that the
Council voted to endorse the attached resolution presented by the National Association
of Counties on Stabilizing Electrical Energy prices.
APPROVED this 12 day of June, 2001.
WHATCOM COUNTY COUNCIL
A EST: WHATCOM O NTY, SHINGTON
Dana Brown= Davisr CF he Council 4arNe so , Cotupcil Chair
AP OVED AS TO FORM:
el ty Prosecutor
VM
ENVIRONMENT, ENERGY AND LAND USE STEERING COMMITTEE
RESOLUTION ON STABILIZING ELECTRICAL ENERGY PRICES
Issue: Dramatic price increases of wholesale electric power in the United States in the
past year are having a profound negative impact on the economy of NACo member
counties. Consequently the current and future economic viability of NACo member
counties, particularly rural and agriculture counties, are in jeopardy.
Proposed Policy: The National Association of Counties (NACo) supports and
encourages the Washington Administration to direct the Federal Regulatory
Commission (FERC) to exercise its statutory authority and issue an Order to stabilize
the wholesale price of electrical energy. The FERC Order would set a meaningful
temporary threshold, at a specific dollar amount per Mega - watt-hour above which
power could not be sold on the wholesale market, unless the party bringing the product
to market could justify the rate based on the fundamental costs of production, including
a reasonable rate of return. -
Background: While we respect, in concept, the hesitancy of government to impose
restrictions on a market, we also recognize the reality that industry, including
agriculture, in NACo member counties is being crippled by chaotic prices on the
wholesale energy market, including counties in states that have not chosen to deregulate.
The FERC was established by Congress to assure that energy prices are fair, just and
reasonable. To that end, NACo urges Congress and the Administration to direct FERC
to establish orders that will stabilize electrical prices at a rate that will allow our
industry to operate and remain competitive. In order to avoid a price cap, we suggest
instead consideration of a meaningful threshold, above which power could not be sold
on the wholesale market, unless the party bringing the product to market could justify
the rate based on the fundamental costs of production, including a reasonable rate of
return. Further, it may be appropriate to establish a tiered threshold, with baseload
generation at one threshold, and peaking plants at another threshold. Such a threshold
could be in place for a period of two years, during which the energy situation can be
adequately addressed. Certainly a threshold will encourage all bulk suppliers to sell
within a reasonable price range, realize an adequate return on their investment, be more
efficient, and still provide power at a cost where the Nation's consumers' lives and
businesses are enhanced. To accomplish its stated goal the Commission has no choice
but to order a threshold for the wholesale cost of electrical energy.
Fiscal(Urhan/Rural Impact: Significant impact on the economic viability of urban and
rural counties.
Submitted by: Connie Hoag, Council Member, Whatcom County, Washington State
John Howard, Commissioner, Union County, Oregon
Nacorslm.energy