HomeMy WebLinkAboutResolution No. 6379RESOLUTION NO 6379
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF AZUSA, CALIFORNIA, URGING THE
NATIONAL LEAGUE OF CITIES TO ADOPT A
RESOLUTION REQUESTING FEDERAL LEGISLA-
TION TO CORRECT THE "RATE SQUEEZE" SITUA-
TION IN REGARD TO MUNICIPAL ELECTRICAL
SYSTEMS AND TO PROVIDE FOR PRELIMINARY
HEARINGS BEFORE RATE INCREASES ARE
ALLOWED UNDER SECTION 205 OF THE FEDERAL
POWER ACT.
WHEREAS, the existing procedures under which the Federal Power
Commission considers rate increase applications under Section 205 of the
Federal Power Act impose an unfair and substantial burden upon the customers
of municipal electrical systems.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City
of Azusa, California, that the National League of Cities is urged to adopt a
resolution in substantially the following form:
"A RESOLUTION REQUESTING FEDERAL LEGISLATION
TO CORRECT THE 'RATE SQUEEZE' SITUATION IN
REGARD TO MUNICIPAL ELECTRICAL SYSTEMS AND
TO PROVIDE FOR PRELIMINARY HEARINGS BEFORE
RATE INCREASES ARE ALLOWED UNDER SECTICN 205
OF THE FEDERAL POWER ACT.
WHEREAS, the survival of many municipal electric utilities
throughout the Nation is at stake because of repeated efforts of some
private utilities to make such operations untenable; and,
WHEREAS, many private electric utilities during the past
two years have forced repeated sharp increases in wholesale rates
upon these municipal systems prior to hearings by regulatory agency
to determine whether such increases are just and reasonable; and,
WHEREAS, in many cases the wholesale power rate charged
to such municipal systems is considerably higher than the rate charged
comparable industrial customers by such private utilities; and,
WHEREAS, the Federal Power Commission has refused to
consider such anticompetetive rate discrimination against municipal
utilities and is appealing a recent Court of Appeals decision which
would require the Commission to consider and correct this price
squeeze situation; and,
WHEREAS, a continuance of this price squeeze has created
a situation where some municipal systems cannot fairly compete
with their private power supplier for industrial business and where
industrial power consumers must pay more for the same service to
the municipal system than it would to the private power company.
WHEREAS, under existing Federal Power Act procedure
these wholesale rate increases are made effective at the latest
with a five-month suspension; and,
WHEREAS, the final decision on such rate cases before that
Commission generally takes four years or longer while such rates
are in effect; and,
WHEREAS, an amendment to Section 205 of the Federal
Power Act could provide for appropriate hearings before rate
increases are permitted in cr der to reflect the consumer's interest
as well as the private utility's interest.
NOW, THEREFORE, BE IT RESOLVED that the National League
of Cities hereby requests congressional action be taken to force the
Federal Power Commission to correct immediately the price squeeze
situation on municipal systems.
BE IT FURTHER RESOLVED that the National League of
Cities requests congressional action be taken to amend Section 205
of the Federal Power Act to reflect the consumers' interest by
providing for preliminary hearings by the Federal Power Commission
to decide whether any, part, or all of the requested rate increase is to
be allowed before any such increase takes effect, and that any such
increase would be subject to later refund if found to be 'unjustified'."
APPROVED AND ADOPTED this
February , 1976.
17th
Mayor
day of
I hereby certify that the foregoing resolution was duly adopted by the City
Council of the City of Azusa at a regular me eting thereof held on the 17th
day of February , 1976, by the following vote of the Council:
AYES: Councilmen: Rubio, Solem, Cruz, Arkison, Decker
NOES: Councilmen: None
ABSENT: Councilmen: None
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