CC - 1998-34 - Opposing Proposition 9 - Electrict utilities•
RESOLUTION NO. 98-34
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROSEMEAD
OPPOSING PROPOSITION 9 REGARDING ELECTRIC UTILITIES
WHEREAS, in 1996, after obtaining consensus from business interests, labor, energy
experts and diverse consumer groups, the California Legislature approved legislation that began the
process of deregulating the electric utility industry with the ultimate intent to provide true economic
competition in the industry; and
WHEREAS, two key components of the legislation rested in the State's decision to issue
$6 billion in rate reduction bonds to offset the "stranded costs" of the electric utilities doing business
in a regulated environment and (2) electric utilities' being mandated to provide a 10% reduction in
consumer electric rates; and
WHEREAS, some of the same interests that came together in support of the legislation in
1996 have changed their minds and are now opposing the decision by the State to issue the bonds
that are underwriting the rate reduction and are sponsoring Proposition 9 which seeks to nullify the
$6 billion in state bonds that have already been issued; and
WHEREAS, in addition to the reversal of policy among some interests, the bond
nullification provision of Proposition 9 might be cause for significant and costly litigation for debt
already incurred by the State; and
WHEREAS, the City of Rosemead supported the initial legislation to deregulate electric
utilities because the members of the City Council believed strongly in the power of the marketplace
to determine the cost of electricity for commercial and residential consumers; and
WHEREAS, the members of the Rosemead City Council believe that the compromises made
originally to gain consensus on the legislation are appropriate and in the long-term best interests of
California; and
WHEREAS, the sponsors of Proposition 9 have not offered sufficient justification to reverse
the current course of deregulating the electric utility industry.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ROSEMEAD DOES
HEREBY RESOLVE:
1. To oppose Proposition 9.
Authorize the City Clerk to send certified copies of this resolution to the League of
California Cities, the City of Rosemead's Legislative Advocate and other entities
interested in opposing Proposition 9
DONE THIS 11TH DAY OF AUGUST, 1998,
ATTEST:
CITY LERK
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF ROSEMEAD
I, Nancy Valderrama, City Clerk of the City of Rosemead, do hereby certify that the
foregoing Resolution No. 98-34 being:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROSEMEAD
OPPOSING PROPOSITION 9 REGARDING ELECTRIC UTILITIES
was duly adopted at a regular meeting of the City Council on the 11th of August 1998, by the
following vote to wit:
AYES:
COUNCILMEMBERS:
VASQUEZ, TAYLOR, BRUESCH, CLARK,
IMPERIAL,
NOES:
COUNCILME MBERS:
NONE
ABSTAIN:
COUNCILMEMBERS:
NONE
ABSENT:
COUNCILMEMBERS:
NONE
NANC VAL RRAMA, CITY CLERK
AGENDA:CERTIFY