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<br />February 24, 2009 <br /> <br />acted on too hastily. After lengthy discussion and hearing comments from <br />citizens, Vice Mayor Reynolds made a motion, seconded by Gene Teague, to adopt <br />the following ordinance on second reading: <br /> <br />City ofMartinsville, Virginia Ordinance No. 2009-05 <br />BE IT ORDAINED by the Council of the City of Martinsville, Virginia, in Regular Session held on February 10,2009, dispensing with a second <br />reading such that this Ordinance shall take effect immediately, that Section 7-13 be added to Chapter 7 of the Code ofthe City of Martinsville to read <br />as follows: <br />Sec. 7-13. City alone to aggregate demand response of retail customers in accordance with FERC order 719. <br />WHEREAS, the City of Martinsville, Virginia (hereinafter "City") owns and operates an electric utility system for the sale of electric <br />power and associated energy for the benefit of its citizens and taxpayers; and <br />WHEREAS, On October 28,2008 the Federal Energy Regulatory Commission ("FERC' or "Commission") issued Order No. 719, 125 <br />FERC ~ 61,071, 73 Fed. Reg. 64,099 ("Order 719"). <br />WHEREAS, Order 719, 18 C.F.R. ~ 35.28(g)(I)(iii) provides: "Each Commission-approved independent system operator and regional <br />transmission organization must permit a qualified aggregator of retail customers to bid demand response on behalf of retail <br />customers directly into the Commission-approved independent system operator's or regional transmission organization's <br />organized markets, unless thc laws and regulations of the relevant electric retail regulatory authority expressly do not permit a <br />retail customer to participate." <br />WHEREAS, Ordcr No. 719, 18 CFR ~ 35.28(g)(1 )(i)(A) provides "Every Commission-approved independent system operator or <br />regional transmission organization that operates organized markets based on competitive bidding for energy imbalance, <br />spinning reserves, supplemental reserves, reactive power and voltage control. or regulation and frequency response ancillary <br />services (or its functional equivalent in the Commission-approved independent system operator's or regional transmission <br />organization's tariff) must accept bids from demand response resources in these markets for that product on a basis comparable <br />to any other resources, if 1he demand response resource meets the necessary technical requirements under the tariff, and submits <br />a bid under the Commission-approved independent system operator's or regional transmission organization's bidding rules at or <br />below the market-clearing price, unless not pemlitted by the laws or regulations of the relevant electric retail regulatory <br />authority. " <br />WHEREAS, the City Council has determined that it would be harmful to tho demand response program to be impemented by the City, the <br />collective interests of the City's electric utility system, and the City's retail customers, to permit any entity other than the City <br />to aggregate demarrl response on behalf of its retail customers. <br />NOW, THEREFORE, BE IT ORDAINED by the City Council ofthe City of Martinsville, Virginia, that <br />A. The City Council, as the retail electric regulatory authority for thc City and its retail electric consumers, determines it to be desirable <br />that the aggregation of dcrmUld response on behalf of its retail customers to hc hid directly into the organized electric and <br />ancillary services markets administcred hy the regional transmission organization that includes the City (or any successor <br />independent system operator or regional tmnsmission organization) be pert(JTIned by the City or its authorized designee. <br />B. The City or its authorized designee is the sole entity permitted to aggregate retail customers' demand response and bid demand <br />response on behalf of retail customers of the City directly into any Commission-approved independent system operator's or <br />regional transmission organization's organized electric markets. <br />C. Retail customers on the City's electric system desiring to bid their demand response into a Commission-approved independent system <br />operator's or regionaltra.l1smission organization's organized electric markets may do so only by participating in the program <br />established by the City or its authorized designee. <br />D. The City or its autllOrized dcsignce is the sole entity permitted to bid demand response on behalf of retail custllners of the City directly <br />into any Commission-approved independent system opcrator' s or regional transmission organization's organized markets for <br />energy imbalance, spinning reserves, supplemental reserves, reactive power and voltage control, or regulation and frequency <br />response ancillary serv ices (or its functional equivalent in the Commission-approved indcpendent system operator's or regional <br />transmission organization's taritl). <br />E. Retail customers of the City's electric system desiring to bid their demand response into a Commission-approved independent system <br />operator's or regionallr<U1smission organization's organized markets f(Jr energy imbalance, spinning reserves, supplemental <br />reserves, reactive power 'U1d voltage control, or regulation and frequency response ancillary services (or its functional <br />