HomeMy WebLinkAboutResolution No. R2023-14RESOLUTION NO, R202344
A RESOLUTION OF THE CITY COUNM OF THE CITY OF FRIENDSWOOD,
TEXAS, DENYING TEXAS -NEW MEXICO POWER COMPANY'S APPLICATION TO
AMEND ITS DISTRIBUTION COST RECOVERY FACTOR TO INCREASE
DISTRIBUTION RATES WITHIN THE CITY; AUTHORIZING PARTICIPATION
WITH TNMP CITIES; AUTHORIZING THE HIRING OF LEGAL COUNSEL AND
CONSULTANTS; FINDING THAT THE CITY'S REASONABLE RATE CASE
EXPENSES SHALL BE REIMBURSED BY TEXAS -NEW MEXICO POWER
COMPANY; REQUIRING NOTICE OF THIS RESOLUTION BE SENT TO TEXAS -
NEW MEXICO POWER COMPANY AND LEGAL COUNSEL; AND PROVIDING FOR
AN EFFECTIVE DATE.
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WHEREAS, the City of Friendswood ("City") is an electric utility customer ofTexas-New Mexico
Power Company ("TNMP") with an interest in the rates and charges of TNMP; and
WHEREAS, the Cities Served by Texas -New Mexico Power Company ("TNMP Cities") is a
coalition of similarly situated cities served by TNMP that have joined together to efficiently and cost
effectively review and respond to electric issues affecting rates charged in TNMP's service area in matters
before the Public Utility Commission ("PUC") and the courts; and
WHEREAS, on or about April 5, 2023, TNMP filed with the PUC an Application for Approval to
Amend its Distribution Cost Recovery Factor ("DCRF"), PUC Docket No. 54807, seeking to increase
distribution rates by $14,800,834 million annually; and
WHEREAS, the City of Friendswood will cooperate with TNMP Cities in coordinating their review
of TNMP's DCRF filing with designated attorneys and consultants, prepare a common response, negotiate
with Texas -New Mexico Power Company, and direct any necessary litigation, to resolve issues in the
Texas -New Mexico Power Company's filing; and
WHEREAS, all electric utility customers residing in the City will be impacted by this ratemaking
proceeding if TNMP's Application is granted; and
WHEREAS, working with the TNMP Cities to review the rates charged by TNMP allows members
to accomplish more collectively than each city could do acting alone; and
WHEREAS, TNMP Cities' members and attorneys recommend that members who have retained
original jurisdiction over electric utility rates deny TNMP's DCRF; NOW THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FRIENDSWOOD, STATE OF
TEXAS:
Section 1. That all matters and facts set forth in the recitals hereinabove are found to be true by the
City Council of the City of Friendswood.
Section 2. That the City is authorized to participate with TNMP Cities in PUC Docket No. 54807.
Section 3. That, subject to the right to terminate engagement at any time, the City of Friendswood
hereby authorizes the hiring of the law firm of Lloyd Gosselink Rochelle & Townsend, P.C. and consultants
to negotiate with TNMP, make recommendations to the City regarding reasonable rates, and to direct any
necessary administrative proceedings or court litigation associated with an appeal of TNMP's DCRF
application.
Section 4. That the rates proposed by TNMP to be recovered through its DCRF charged to
customers located within the City limits are hereby denied.
Section 5, That TNMP should continue to charge its existing rates to customers within the City.
Section 5. That the City's reasonable rate case expenses shall be reimbursed in full by TNMP within
30 days of the adoption of this Resolution, and within 30 days of presenting monthly bills to TNMP
thereafter.
Section 6. That the City Secretary is hereby directed to send a copy of this resolution to Scott
Scanister, Associate General Counsel, Texas -New Mexico Power Company, 577 N. Garden Ridge Blvd.,
Lewisville, Texas 75067, and to Thomas Brocato, General Counsel to TNMP Cities, at Lloyd Gosselink
Rochelle & Townsend, P.C., P.O. Box 1725, Austin, TX 787674725, or tbrocato@lglaw8rm.com.
Section 7. This resolution shall take effect immediately from and after its adoption by the City
Council of the City of Friendswood.
PASSED, APPROVED and ADOPTED by the affirmative vote of the City Council of the City of
Friendswood on this the 1" day of May, 2023. n
APPROVED AS TO FORM:
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