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ORDINANCE NO. vt 3a6.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF WEST
MEMPHIS,ARKANSAS TO ONLY PERMIT THE WEST MEMPHIS UTILITIES
COMMISSION TO AGGREGATE DEMAND RESPONSE OF RETAIL
CUSTOMERS OF THE WEST MEMPHIS UTILITIES COMMISSION IN
ACCORDANCE WITH FERC ORDER 719 AND TAKING OTHER ACTIONS IN
CONNECTION THEREWITH, AND DECLARING AN EMERGENCY
WHEREAS, the City of West Memphis, Arkansas (hereinafter"City") owns and operates
an electric generation and distribution system for the sale of electric power and associated
energy to its retail customers in West Memphis, Arkansas; and
WHEREAS,the City's transmission service provider, Entergy, is integrating into
the Midcontinent Independent System Operator("MISO") a Regional Transmission
Organization ("RTO") on or about December 13, 2013, or thereafter; and
WHEREAS, the Federal Energy Regulatory Commission ("FERC") issued Order No.
719, 125 FERC¶61, 071, 73 Fed. Reg. 64,099 ("Order 719"); and
WHEREAS, Order 719, 18 C.F.R. § 35.28(g)(1)(i)(A)provides: "Every Commission-
approved independent system operator [ISO] or regional transmission organization
[RTO] that operates organized markets based on competitive bidding for energy
imbalance, spinning reserves, supplemental reserves, reactive power and voltage control,
or regulation and frequency response ancillary services (or its functional equivalent
in the Commission-approved [ISO] or [RTO's] tariff)must accept bids from demand
response resources in these markets for that product on a basis comparable to any other
resources, if the demand response resource meets the necessary technical requirements
under the tariff, and submits a bid under the Commission-approved [ISO]'s or [RTO's]
bidding rules at or below the market clearing price, unless not permitted by the laws or
regulations of the relevant electric retail regulatory authority."
WHEREAS, Order No. 719, 18 C.F.R. § 35.28(g)(1)(iii)provides that: "Each
Commission-approved [ISO] and [RTO] must permit a qualified aggregator of retail
customers to bid demand response on behalf of retail customers directly into the
Commission-approved [ISO's] or [RTO's] organized markets,unless the laws and
regulations of the relevant electric retail regulatory authority expressly do not permit a
retail customer to participate."
WHEREAS,the City Council of the City of West Memphis,the electric retail regulatory
authority for the West Memphis Utilities Commission has determined that it would be
harmful to the demand response program, if any, to be implemented by the City, the
collective interests of the City's electric utility system, and the City's retail customers,to
permit any entity other than the City to aggregate demand response on behalf of its retail
customers.
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NOW, THEREFORE BE IT ORDAINED by the Council of the City, that:
SECTION 1. The Council, as the retail electric regulatory authority for West Memphis
Utilities Commission, determines it to be desirable that the aggregation of demand
response on behalf of its retail customers to be bid directly into the organized electric
and ancillary services markets administered by the RTO that includes the City (or any
successor ISO or RTO )be performed by West Memphis Utilities Commission.
SECTION 2. West Memphis Utilities Commission is the sole entity permitted to
aggregate retail customers' demand response and bid demand response on behalf of retail
customers of the City directly into any FERC approved ISO or RTO's organized electric
markets.
SECTION 3. Retail customers on West Memphis Utilities Commission desiring to bid
their demand response into a FERC approved ISO or RTO's organized electric markets
may do so only by participating in the program, if any, established by the West Memphis
Utilities Commission.
SECTION 4. Management of West Memphis Utilities Commission is authorized to
adopt any necessary regulations to implement this Ordinance.
SECTION 5. That it is found and determined that all formal actions of the Council of
the City concerning and relating to the adoption of this Ordinance were taken in an open
meeting of the Council and that all deliberations of this Council that resulted in such
formal actions were in meetings open to the public, in compliance with Arkansas law.
SECTION 6. If any section, subsection, paragraph, clause or provision or any part
thereof of this Ordinance shall be finally adjudicated by a court of competent jurisdiction
to be invalid, the remainder of this Ordinance shall be unaffected by such adjudication
and all the remaining provisions of this Ordinance shall remain in full force and effect as
though such section, subsection,paragraph, clause or provision or any part thereof so
adjudicated to be invalid had not, to the extent of such invalidity,been included herein.
SECTION 7. This Ordinance is hereby declared to be an emergency measure in order to
assure the City can enact this legislation before bids are accepted for aggregate retail load
by any ISO or RTO and to therefore protect the public welfare. That this Ordinance shall
be in full force and effect from and after its passage and approval.
PASSED:
A90 ll ,A,0 7 ;043
DATE
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APPROVED
MAYOR
RECEIVED
ATTEST:
OCT 1 7 2013
CITY OF WEST MEMPHIS
CITY CLERK'S OFFICE
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