HomeMy WebLinkAboutResolution No. 2009-24 RESOLUTION NO. R2009-24
A RESOLUTION OF THE CITY OF FRIENDSWOOD SUSPENDING
THE MAY 5, 2009 EFFECTIVE DATE OF TEXAS-NEW MEXICO
POWER COMPANY'S ("TNMP'S") REQUESTED SUPPLEMENTAL
APPLICATION TO CHANGE RATES TO PERMIT THE CITY TIME TO
STUDY THE REQUEST AND TO ESTABLISH REASONABLE RATES;
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.
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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, on or before October 3, 2008 the City of Friendswood adopted a resolution
suspending the rate application, approving cooperation with other TNMP cities and the Gulf
Coast Coalition of Cities, and authorizing the hiring of Lloyd Gosselink and consulting services;
and
WHEREAS, the City of Friendswood was granted intervenor status in the Application of
Texas-New Mexico Power Company for Authority to Change Rates, PUC Docket No. 36025; and
WHEREAS, on or before January 2, 2009 the City of Friendswood adopted a resolution
denying TNMP's Statement of Intent;
WHEREAS, on ar about March 31, 2009, TNMP pursuant to PURA §§ 33.001 and
36.001 filed with the City of Friendswood a Supplemental Application and Statement of Intent to
Change Rates in all municipalities exercising original jurisdiction within its service area effective
May 5, 2009; and
WHEREAS, in the Supplemental Application and Statement of Intent to Change Rates,
TNMP is seeking to increase rates by approximately $18.2 million over current rates, or an
11.75%overall increase.
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.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
FRIENDSWOOD, TEXAS:
Section L That the May 5, 2009 effective date of the rate request submitted by
TNMP on or about March 31, 2009, be suspended for the maximum period allowed by law to
permit adequate time to review the proposed changes and to establish reasonable rates.
Section 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.
Section 3. That the reasonable rate case expenses of the City's attorneys, Lloyd
Gosselink, and consultants shall be reimbursed by TNMP.
Section 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.
Section 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 on this 20th day of A ril 2009.
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David J. H. S 't
Mayor
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D oris McKenzie, T C � 0
City Secretary v v
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