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CITY OF NORTH OLMSTED RESOLUTION NO. 2004 - 65 BY: Mayor Musial and Council Members Nashar, Limpert and Dailey A RESOLUTION URGING THE PUBLIC UTILITIES COMMISSION OF OHIO (PUCO) TO DENY THE PR4PUSED "RATE STABILIZATION PLAN" FOR ELECTRICAL PUWER UTILITY, FIItST ENERGY CORPORATION, AND DECLARING AN EMERGENCY. WHEREAS, electrical power utility First Energy Corporation has filed for Public Utilities Commission of Ohio (PUCO) approval of a proposed "rate sta.bilization charge" which would extend a previously approved rate adjustment to recover so-called "stranded costs" for an additional 3 years; and WHEREAS, PUCO has jurisdiction to review and has conducted hearing to determine the electrical power rates requested by First Energy Corporation for 2406, 2007 and 2008, which would extend the "rate stabilization charge" for 3 more years and will ultimately be passed onto the electrical bi11s of residents and businesses of the City of North Olmsted; and WHEREAS, the consumer costs for the current "rate stabilization plan" have been estimated at $5 billion dollars and would maintain the rate of 64 cents per kilowatt hour for Cleveland Electric Illuminating, costing customers on an average an extra $25.00 per month over these 3 years; and WHEREAS, the PUCO's previous review of "stranded costs" recovery for First Energy has prompted media and official scrutiny of the Ohio Consumer Counsel and its former executive, Robert Tungren, who allegedly failed to object to First Energy's proposed 6.9 billion dollar "rate stabilization plan" in 2000 (compared to OCC energy consultant's estimate of less than 3.5 billion and PUCO's study which substantiated 4.4 billion), resulting in PUCO's approval of the entire 6.9 billion "rate stabilization charge" and passed onto the electrical bills of residents and businesses of the City over the past several years; and WHEREAS, the PUCO should consider the impact of these electric bills on the residents of the City of North Olmsted, particularly given the fact of already escalated electrical bills occurring as a result of the last "rate stabilization charge," and further would be especially disastrous for senior citizens and others on fixed incomes; and WHEREAS, it is the desire of this Council to support the Mayor in opposition, in the strongest terms possible, to this proposed rate adjustment, charge or increase by electrical power utility First Energy Corporation; ;. ?-