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RESOLUTION NO. 7491
RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO
DECLARING OPPOSITION TO THE PRIVATIZATION PROPOSAL
FOR THE FEDERAL POWER MARKETING ADMINISTRATIONS
WHEREAS, the City of Palo Alto manages its electric utility
operations with the goal of providing an adequate, reliable, and
safe supply of electric power to meet customers' needs in an
economical, efficient, and environmentally sound manner; and
WHEREAS, the Government of the United States proposes to
sell many of the Power Marketing Administrations, including the
Western Area Power Administration; and
WHEREAS, the commitment made in 1964 by the City of Palo
Alto to the Western Area Power Administration has resulted in
support of the expansion and operation of federal hydroelectric
generation; and
WHEREAS, the City of Palo Alto has based its electric
resource planning strategies on the continued relationship with the
Western Area Power Administration, from which it receives up to
ninety percent of its electric supplies; and
WHEREAS, the residents and businesses of Palo Alto could
experience significant increases in electric rates if the Western
Area Power Administration were privatized; and
WHEREAS, the arbitrary sale of the Power Marketing
Administrations to private entities could serve to concentrate
electricity generation in an anti -competitive manner;
NOW, THEREFORE, the Council of the City of Palo Alto does
hereby RESOLVE as follows:
SECTION 1. The City Council hereby opposes the transfer of
control or ownership of the Federal Power Marketing Administrations
to private entities, and the City Manager is hereby authorized to
communicate the City's sentiment to the Secretary of the Department
of Energy, the President of the United States, and appropriate
members of the Congress of the United States and their staffs.
SECTION 2. As an alternative to such privatization
efforts, the Council recommends the restructuring of the existing
relationship between the Federal Power Marketing Administrations
and their customers to improve efficiency by reducing the number of
federal personnel and overhead costs required to operate the Power
Marketing Administrations.
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SECTION 3. The Council finds that the action taken herein
does not constitute a project under the California Environmental
Quality Act, and no environmental assessment is necessary.
INTRODUCED AND PASSED: April 10, 1995
AYES: ANDERSEN, FAZZINO, HUBER, KNISS, MCCOWN, ROSENBAUM, SCHNEIDER, SIMITIAN,
WHEELER
NOES:
ABSENT
ABSTENTIONS:
ATTEST/
Senior Asst. City Attorney
APPROVED:
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Mayor
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city Manager
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Directs
Dire for of Finance
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950410 syn 0070760