1975-677RESOLUTION NO. 75R-677
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF ANAHEIM[, CALIFORNIA, URGING THE NATIONAL
LEAGUE OF CITIES TO ADOPT A RESOLUTION
REQUESTING FEDERAL LEGISLATION TO CORRECT
THE "RATE SQUEEZE" SITUATION IN REGARD T0.
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 20.5 of the Federal Power Act impose an unfair
and substantial burdenupon the customers of municipal
electrical systems.
NOW, THEREFORE, BE IT RESOLVED by the City Council
of the City of Anaheim, 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 SQUEEZEt SITUATION 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 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 utilitiesduring
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 high-
er than the rate charged to 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.
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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 order to reflect the
consumerts 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 squee . ze I 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.'"
THE FOREGOING RESOLUTION
this 30th day of December, 1975.,
ATTEST:
77,
CITY CLERK OF THE OF ANAHEIM
ROF: j h -2-
is approved and signed by me
MA R OF THE CITY OF ANTHEIM
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.
CITY OF ANAHEIM )
I, ALONA M. HOUGARD, City Clerk of the City of Anaheim, do
hereby certify that the foregoing Resolution No. 75R-677 was intro-
duced and adopted at a regular meeting provided by law, of the City _
Council of the City of Anaheim held on the 30th day of December,
197 , by the following vote of the members thereof: '
AYES: COUNCIL MEMBERS: Kaywood, Seymour, Pebley, Sneegas
and Thom
NOES: COUNCIL MEMBERS: None t
ABSENT: COUNCIL MEMBERS: None
AND I FURTHER CERTIFY that the Mayor of the City of Anaheim
approved and signed said Resolution No.175R-67:7 on the 30th day of
December, 1975.
IN WITNESS WHEREOF, I have hereunto set; my hand and affixed
the seal of the City of Anaheim this 30th day of December, 1975.
CITY CLERK OF THE CIT 'OF ANAHEIM
(SEAL)
I, ALONA M. HOUGARD, City Clerk of the City of Anaheim, do
hereby certify that the foregoing is the original of Resolution No.
75R-677 duly passed and adopted by the Anaheim City Council on
December 30, 1975.
City Clerk