National League of Cities (NLC), Washington, D. C.

PREAMBLE: With the national energy security and balance of trade (from nearly 50% of the U.S. demand for oil imported) at stake, we have no choice but to implement an aggressive energy policy that prioritizes energy efficiency and renewable energy technology development in the building, industry, utilities and transportation sectors of the U.S. economy. It has been proven without any doubt that conservation is the least expensive energy resource when compared to new power generation, or additional fossil fuel, or nuclear energy producing plants, using cost-effective and efficient technologies.

Another critical issue emerging in the energy arena is the anticipated electric utility deregulation and retail wheeling, as part of the competitive market transformation process. Unfortunately, at the expense of lower cost electricity, the traditionally reliable and quality customer services from both public and private utilities may be jeopardized, impacting many urban rate payers.

Therefore, it is vital that the federal, state and local energy policies concentrate on the following ten (10) initiatives:

1. Energy efficiency;
2. Renewable energy technology;
3. Life Cycle Costs (LCC) analysis;
4. Conservation rebates, credits and assistance;
5. Minimum protocol for utility restructuring;
6. "Retail Wheeling" without compromising customer service;
7. Public and private utilities’ investment protection;
8. Fuel-neutral approach to efficient energy use;
9. Energy, Environment and Economy (3 E’s) of national policy; and
10. Better "quality control" of energy and utility operations in a deregulated environment and market conditioning.

Following is the proposed Resolution:

WHEREAS, the 1992 Energy Policy Act is a comprehensive federal law that lays out the national standards for energy production, distribution and consumption within the United States and its territories, by utilizing the state-of-the-art technologies, management and economic principles to make USA energy self-reliant; and

WHEREAS, the last 20 years have demonstrated the overwhelming benefits from energy conservation as the least cost resource in buildings, industry, utilities and transportation sectors of our economy; and

WHEREAS, the anticipated electric utility deregulation and accompanying retail wheeling in the free market competition may provide reliable and cost-effective electrical energy/power to the consumers, unaccustomed to the many potential choices available to purchase retail electrical energy from multiple providers; and

WHEREAS, there remains a danger to the consumers for the lack of smooth transition from a monopolistic utility structure to a very competitive market environment through uncontrolled competition.

NOW, THREFORE, BE IT RESOLVED, that the National League of

Cities (NLC) adopt a Municipal Energy Policy that prioritizes energy efficiency, renewable energy development and realistic electric utility restructuring, so that the energy consumers in towns and cities across the United States, continue to rely upon cost-effective and reliable sources of all forms of energy, resulting in a self-reliant and predictable/sustainable energy future, using the most efficient and performance-based technologies.