HomeMy Public PortalAbout83-024 (03-01-83).
RESOLUTION NO. R3 -24
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF LYNWOOD, CALIFORNIA, SUPPORTING
H. J. RESOLUTION 58 INTRODUCED IN THE
HOUSE OF REPRESENTATIVES BY REPRESENTATIVE
JULIAN DIXON, D -CA, RELATING TO NATURAL
GAS PIPELINE RATE DESIGNS.
WHEREAS, natural gas is an essential fuel used by
many in the preservation of health and life itself; and
WHEREAS, the cost of natural gas has risen dramatic-
ally over the last several years; and
WHEREAS, continued increases in natural gas prices
will cause severe economic dislocations and hardships, and
will adversely affect commerce; and
WHEREAS, interestate natural gas pipeline companies
(hereinafter in this joint resolution referred to as "pipeline
companies ") are acquiring supplies of certain categories of
natural gas at prices in excess of what the end -use market
would support if such supplies were sold separately and not
on a rolled -in basis; and
WHEREAS, under current regulations, local natural gas
distribution companies (hereinafter in this joint resolution
referred to as "local distribution companies ") are required
- -__.to pay for high -cost natural gas when the price of such gas
is rolled -in with the price of other gas; and
WHEREAS, it is essential that local distribution com-
panies be given the option not to purchase such high -cost
natural gas so that the local distribution companies can help
protect their residential and other customers from continuing
increases in utility bills; and
WHEREAS, under the Natural Gas Act and the Natural Gas
Policy Act of 1978, the Federal Energy Regulatory Commission
(hereinafter in this joint resolutio_n.referred to as the
"Commission ") through its authority over pipeline companies'
tariffs and service agreements, has an obligation to protect
the public interest, including the interest of natural gas
ratepayers:
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LYNWOOD
does support H. J. Resolution 58 which would require the
following:
Section 1. The Commission would, within sixty (60)
days after adoption of H. J. Resolution 58, commence a rule
making relating to a natural gas pipeline rate designs. In
the course of such rule making, the Commission shall consider
alternatives to insure that the market clearing prices in the
areas of local distribution companies are reflected in such
rate designs. Such alternatives shall include the following:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF LYNWOOD, CALIFORNIA, SUPPORTING H. J. RE-
SOLUTION 58 INTRODUCED IN THE HOUSE OF REPRE-
SENTATIVES BY REPRESENTATIVE JULIAN DIXON, .
D -CA, RELATING TO NATURAL GAS PIPELINE RATE
DESIGNS.
(1) Procedures to preclude pipeline companies
from rolling -in the price of high -cost
natural gas;
(2) Establishment of a market clearing price
standard, with reference to an appropriate
alternate energy price, to determine what
is to be considered high -cost natural gas;
(3) Adjustment of service agreements between
pipeline companies and local distribution
companies to --
A. allow local distribution companies
to purchase natural gas which meets
the market clearing price standard,
and
B. give local distribution companies
the flexibility to purchase high -cast
natural gas.
(4) Action to require pipeline companies to exercise
market -out rights in any contract for the pur-
chase of natural gas upon a showing that the con-
tract price would cause severe distortion and
hardship in any relevant natural gas market.
PASSED, APPROVED AND ADOPTED this 1St day of
March PASSED,
<�- t�z - s' !�/ .������ /.,cif ✓t
LOUIS A. THOMPSON, AYOR
ATTEST: CITY OF LYNWOOD
C ,cifc.EY/ C.2.Q.. `7I
ANDREA L. HOOPER, CITY CLERK
APPROVED.AS TO CONTENT:
APPROVED AS TO FORM:
CHARLES G. GOMEZ, CTrEf kANAGER
,I';- DAVID R. MC EWE I TTORNEY
STATE OF CALIFORNIA )
) ss.
COUNTY OF LOS ANGELES )
I, the undersigned, City Clerk of the City of
Lynwood, do hereby certify that the foregoing resolution
was passed and adopted by the City Council of the City of
Lynwood at a regular meeting held on the
lst day of March_ , 1983.
AYES: Councilmen 8york, Green, Morris, Rowe, Thompson
NOES: None
ABSENT: None
City Clerk, City of Lynwo d
F •n
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