HomeMy WebLinkAbout1998-03-23 98-153 ORDERItem No,.. 98-152 —..
Date: 3-23-98
Ilem/Subjap ORDER, Directing City Staff to Take the Necessary Steps to Insure Mat the City
of Bummer and Its Residents are Afforded Me Lowest Possible Rata for
Electricity and Natural Gas
RapamTbe Department CityCouncil
Commentary: Councilors Izen and 6eldxci nav<ryuesmtl the nstched CmmciloNube wreidemi
As we are sll awarq the done ofhism u country in the puma ofdemanding chronic utilities. This deregulation will nlso
cmad to tl2 provision of nawral gas once it becomes avvlable in Nis vee.
Under deregulation. and users will have the choice of selecting their own ganmewt ofelecnicity or provider Of normal gas.
Utility hills will Nen he composed of two sepamc chmgm-a bill from Ne provider, where choice is available, and a charge
from Jen local distributor. The cmt is to fasrrr wmmetwe
mpetiben ganerars and providers whcbit is hoped, will null in
lowxmetgy coos.
'Tlmcughout the deregulation pmcas, waam has bund corraud that such wmpeullon will result in more favorable mass an
large energy, uses n dpposM to smaller users such an individual homeowners, dm to volume recommit.
To counteract the porential for such dimarida, most desigulat efforts have included provisions which would allow for
smaller users a hand together an connections to increase their leverage in obtaining preened moa. The is generally salted
'almom ind' in this condom and is similar b cooponve purchasing etToda which nose been customarily teed in dhv ame.
Thr wanted Order will direct smffto take, the nccetory steps m establish a municipally sponsored e m y, consumer
pwchazing wopermve to seek favorable energy prcln& Inaround, is would mocd the Gty Solicum to cautioned POC
rulnmaking in Ne oroaofeggregefion aM directsmRto tlevelcpplans mndpropaals fm suchaprogoam. Progresimpona
wouldbeprovidedamhocttnciI�ain ydays.
Department Heed
Manager's Comments: Fimasal 'l1RD aris-
Q
n4a as, e.�mu9�vQ. Cedn a'�at T[yftn c;tr Manager
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Associated Information:
Order
Budget Approval:
Finance Director
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Legal Approval: j (0/wml (1 -0. n
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98-153
Anaredto Enoncibr Baldacci March 23, 1998
CITY OF BANGOR
(TITLE.) VIYTb¢Ts Directing City SmBb, Take the Necessayy Steps to Insure that the Pty of
. _Bangor and Ifs Residents a e Afforded the Lowest Possible Bates for Electricity and Natural Gas
By flat Qty CouasH of Qtv of Bolster:
ORDERS09
THAT
WHEREAS, utility costs in Maine are among the highest in the nation and our local costs have recently
increased by nearly IO%; and
WHEREAS, (base rates have a negative effect on our region by making it more difficult to attract
businesses and placing a burden on existing businesses, senior citizens living on fixed
incomes, and families struggling to make ends meet; and
WHEREAS, partially in response to current high Was, the State of Maim has begun die process of
deregulating such utilities in order to introduce competition during Me year 2000; and
WHEREAS, to address concerns that large power users may be the primary beneficiaries of such
competition due to Own purchasing power, deregulation will allow for the aggregation of
demand through the formation of energy consumer purchasing cooperatives; and
WHEREAS, it is in Ne best interest of Me City of Banger and our citizens that the City take an active
role in the creation of such cooperatives;
NOW, THEREFORE, BE IT ORDERED BY THE CITY COUNCIL OF THE CITY OF BANGOR,
THAT:: the City Solicitor is hereby dvuted to represent the City of Bangor and its citizens in any
proceedings before the Shore Public Utilities Commission regarding the issue of demand
aggregation or the erection of energy consumer cooperatives; and
BE IT FURTHER ORDERED, THAT: the City Manager or other staff designated by him are hereby
directed to develop aproposal, as well as any applicable options, for establishing a municipally
sponsored energy cooperative available to area municipalities, businesses, and households and
designed to provide the ability or negotiate and provide for pricing discounts on energy purchases;
and
BE IT FURTHER ORDERED, THAT: the City Manager and City Solicitor shall provide a report to the
Fill City Council on Or before July 13,1998 outlining Me feasibility, costs, and benefits of the City
establishing afood energy cooperative or ufiHzing similar approaches to offer eougy, purchase
discounts.
IN CITY COUNCIL 98-153
larch -23, 1998 O R D E R
Councilor Tyler abstained from
discussion and vote
Order Passed- 'Title, Directing City Staff to Take the
Necessary Steps to Insure that the City
of Bangor and its Residents are Afforded
th'e LobeeY Yo'eslbl'e Xabee VOY l eciricity
CI1 CLERK and Natural Cas
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C. �wi 6.
..
Councilman