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HomeMy WebLinkAboutRES 1997-19 - Board RESOLUTION NO. 9 719 OF THE TRUCKEE DONNER PUBLIC UTILITY DISTRICT ADOPTING POLICY REGARDING CUSTOMER CHOICE OF AN ELECTRIC GENERATION PROVIDER WHEREAS, Truckee Donner Public Utility District was formed by the voters of the Truckee community in 1927 to provide them with reliable electric energy, and WHEREAS, since that time, the District has faithfully met the electric energy needs of the community by aggregating the individual electric power loads of its customers and entering into contracts for the purchase of wholesale power to meet those aggregated loads; and WHEREAS, the District is among the utilities offering the lowest rates in the state of California, 6.81 cents per kilowatt hour, and has had no general electric rate increase since 1986, and WHEREAS, AB1890, enacted by the California legislature and signed into law by the Governor, seeks to deregulate the generation portion of the electric utility industry in California; and WHEREAS the goal of AB1890 is to promote improved efficiency in the use of generation assets thereby lowering electric rates paid by the end-use customer, and WHEREAS AB1890 provides that customers of investor owned utilities in California may choose direct access for the provision of electric generation services through an independent system operator and power exchange to be created in California; and WHEREAS this District believes that customer choice may, if properly implemented, provide the customers of Truckee Donner PUD with an opportunity to evaluate multiple alternatives for the provision of their electric generation services, and WHEREAS this District further believes that the benefits anticipated to be available to customers through AB1890 may be difficult to realize for certain types of electric customers and that some customers of this District could be placed at a significant disadvantage if implementation is not handled properly, and WHEREAS a central value in making AB1890 work is that there be a level playing field upon which all parties participate fairly, and WHEREAS this District believes that the institutions, technologies and management systems are not yet in place which allow customer choice to be properly implemented, NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Truckee Donner Public Utility District as follows: 1. That the Truckee Donner Public Utility District favors providing its customers with choice regarding access to electric generating services. 2. That It is the intent of the District to provide customer choice at the earliest time practicable, subject to certain conditions being met. 3. That the conditions that need to be met prior to this District offering customer choice are - a) The District must achieve open access to Network integration Transmission Service on the Sierra Pacific Power Company transmission system, this being one essential service to being able to bring generation service to Truckee from alternate generation providers. b) Other electric utility companies in California must implement customer choice within their service territories in a manner consistent with the intent and letter of AB1890 in order to have a level playing field upon which all of us will operate. c) The TDPUD must acquire and implement a customer billing and information system to handle the more complex billing arrangements resulting from customer choice. d) The California Independent System Operator and Power Exchange must be operational and a method of handling power scheduling and dispatch into Truckee must be established. e) The issues relating to metering must be resolved and the associated technologies, if any, must be operational. 4. The District will, no less often than annually, evaluate deregulation and customer choice practices as they develop in California and will determine which practices will work best for customers of this District, based on the unique load characteristics of our customers and the market practices that develop, and will proceed with customer choice accordingly. 5. The District Board of Directors will review the status of these precedent conditions at least annually and a decision regarding implementation of customer choice will be made accordingly and at the earliest time practicable. PASSED AND ADOPTED by the Board of Directors at a meeting duly called and held within the District on the fifth day of November 1997 by the following roll call vote: AYES: Aguera, Jones, Maass, Sutton and Hemig. NOES: None. ABSENT. None. TRUC E DONNER PUBLIC UTILITY DISTRICT By Peter L. H meisfe , Clerk of the Board ATT Su an M. Craig, Deputy Distri Clerk