HomeMy WebLinkAboutRESO 6024• • • ORIGINAL
RESOLUTION NO. 6024
RESOLUTION OF THE COUNCIL OF THE CIT! or PAi.O ALTO
CALLING ON THE SACRAMENTO MUNICIPAL UTILITY DISTRICT
TO SETTLE ITS LEGAL DISPUTE WITH THE UNITED STATES
OVER PRICES FOR POWER FROM THE CEN~RAL VALLEY PROJECT (CVP)
WBBRBAS, the Sacramento Municipal Utility District (SMUD) has pur-
sued litigation sin~~ 1974 against the United States alleging that SMUD
is required under its 1954 CVP power agreement to pay only for the
costs of inexpensive hydroelectric-generated CVP power and is not re-
quired to share the higher costs of non-hydro CVP power sourcesr
WHEREAS, the effect of SMUD's restrictive interpretation of its
contract would be to increase severalfold the CVP rates to all other
CVP customers since SMUD's large CVP allocation would preempt a sub-
stantial portion of the total CVP hydroelectric-generated power;
WHEREAS, under SMUD's contractual interpretation, the Central
Valley Project would no longer serve as a highly valued source of
low-cost federal power to its numerous Central Valley Proj~ct public
agency customers, with a resultant devastatinq effect upon public power
in California;
NOW, TBBRBFORB, the City Council of the City of Palo Alto does
RESOLVE as follows:
SECTION l. That SMUD seek a settlement of its legal dispute
with the United States that will preserv~ the Central Valley Project as
a viable pover source and alternative to PG&E for preference customers
of the Central Valley Project.
SECTION 2,,
of SKUD and the
public power in
ties!' including
That such a resolution will serve the mutual
other CVP customers by assuring the continued
California, which benefits all publicly-owned
SMUD.
INTRODUCED AND PASSED: May 3, 1982
AYBS: Sech el, Eyerly, Fazzino, Klein, Levy, Witherspoon
HOBS: None
ABSBN'l': Cobb, Fletcher, Renzel
ABSTBNTIONS1 ' None
inter:·ests
future of
utili-