HomeMy WebLinkAboutResolution No. 2008-99RESOLUTION NO. R2008-99
A RESOLUTION OF THE CITY OF FRIENDSWOOD, TEXAS, FINDING
THAT TEXAS -NEW MEXICO POWER COMPANY'S REQUESTED
INCREASES TO ITS ELECTRIC TRANSMISSION AND DISTRIBUTION
RATES AND CHARGES WITHIN THE CITY SHOULD BE DENIED;
FINDING THAT THE CITY'S REASONABLE RATE CASE EXPENSES
SHALL BE REIMBURSED BY THE COMPANY; 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, pursuant to § 33.001 of the Public Utility Regulatory Act ("PURA"), the
City has exclusive original jurisdiction over the electric rates, operations, and services provided
within city limits;
WHEREAS, on or about August 29, 2008, Texas -New Mexico Power Company
("TNMP" or "the Company"), 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, pursuant to PURA § 36.108, the City lawfully suspended the October 3,
2008, effective date by resolution to provide time to study the reasonableness of the Company's
application to increase rates; 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, the City, in a reasonably noticed meeting that was open to the public,
considered the Company's application; and
WHEREAS, the consultants who were retained by TNMP Cities to evaluate the merits of
the Company's application have determined that the Company's requested $8.7 million increase
in revenues for its transmission and distribution system is not supported by evidence; and
WHEREAS, PURA § 33.023 provides that reasonable costs incurred by cities in
ratemaking activities are to be reimbursed by the regulated utility.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
FRIENDSWOOD, TEXAS:
1. That the rates proposed by Texas -New Mexico Power Company, to be recovered
through its electric transmission and distribution rates charged to customers located within the
City limits, are hereby found to be unreasonable and shall be denied.
2. That the Company shall continue to charge its existing rates for transmission and
distribution services to customers within the City.
3. That the City's reasonable rate case expenses shall be reimbursed by TNMP.
4. 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.
5. 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 December, 2008.
ATTE-ST:
Deloris McKenzie, TRMC
City Secretary
(- �j )o4_�s
CaaVi�dJ. jH. mith
_ Mayor
R2008-99
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