HomeMy WebLinkAboutResolution No. 2008-69RESOLUTION NO. R2008-69
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
FRIENDSWOOD, TEXAS, SUSPENDING THE OCTOBER 3,
2008, EFFECTIVE DATE OF TEXAS -NEW MEXICO POWER
COMPANY'S ("TNMP'S") REQUESTED RATE CHANGE TO
PERMIT THE CITY TIME TO STUDY THE REQUEST AND
TO ESTABLISH REASONABLE RATES; APPROVING
COOPERATION WITH OTHER TNMP CITIES; HIRING
LLOYD GOSSELINK ATTORNEYS AND CONSULTING
SERVICES TO NEGOTIATE WITH THE COMPANY AND
DIRECT ANY NECESSARY LITIGATION AND APPEALS;
FINDING THAT THE MEETING AT WHICH THIS
RESOLUTION IS PASSED IS OPEN TO THE PUBLIC AS
REQUIRED BY LAW; REQUIRING NOTICE OF THIS
RESOLUTION TO THE COMPANY AND LEGAL COUNSEL.
WHEREAS, on or about August 29, 2008, Texas -New Mexico Power Company
("TNMP"), pursuant to PURA §§ 33.001 and 36.001 filed with the City of Friendswood a
Statement of Intent to change electric delivery rates in all municipalities exercising original
jurisdiction within its service area effective October 3, 2008; and
WHEREAS, the City of Friendswood is a member of the coalition of TNMP Cities and
will cooperate with the other similarly situated city members and other city participants in
conducting a review of the Company's application and to hire and direct legal counsel and
consultants to prepare a common response and to negotiate with the Company and direct any
necessary litigation; and
WHEREAS, PURA § 36.108 grants local regulatory authorities the right to suspend the
effective date of proposed rate changes for ninety (90) days after the date the rate change would
otherwise be effective; and
WHEREAS, PURA § 33.023 provides that costs incurred by Cities in ratemaking
activities are to be reimbursed by the regulated utility.
THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
FRIENDSWOOD, TEXAS:
1. That the October 3, 2008, effective date of the rate request submitted by TNMP
on or about August 29, 2008, be suspended for the maximum period allowed by law to permit
adequate time to review the proposed changes and to establish reasonable rates.
2. That the City is authorized to cooperate with other cities served by TNMP to
coordinate efforts to protect the interests of the City and protect the interests of TNMP's end -use
customers residing and conducting business within municipal limits.
3. Subject to the right to terminate employment at any time, the City of Friendswood
hereby authorizes the hiring of Thomas Brocato and Geoffrey Gay of the law firm of Lloyd
Gosselink and consultants to negotiate with the Company, make recommendations regarding
reasonable rates and to direct any necessary administrative proceedings or court litigation
associated with an appeal of a rate ordinance and the rate case filed with the City or Public
Utility Commission.
4. That the City's reasonable rate case expenses shall be reimbursed by TNMP.
5. That it is hereby officially found and determined that the meeting at which this
Resolution is passed is open to the public as required by law and the public notice of the time,
place, and purpose of said meeting was given as required.
6. A copy of this Resolution shall be sent to TNMP, care of Scott Seamster,
Corporate Counsel, 225 E. John Carpenter Freeway, Suite 1500, Irving, Texas 75062-2282 and
to Thomas Brocato, at Lloyd Gosselink Rochelle & Townsend, P.C., 816 Congress Avenue,
Suite 1900, Austin, Texas 78701.
PASSED, APPROVED, AND RESOLVED this 151h day of September, 2008.
avid J. H. Smith
Mayor
ATTEST:
Ll , t�, - �,
Ddloris McKenzie, TRM
City Secretary
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