HomeMy WebLinkAboutResolution No. 2010-35 RESOLUTION NO. R2010-35
A RESOLUTION OF THE CITY OF FRIENDSWOOD
SUSPENDING THE OCTOBER 1, 2010 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; DIRECTING TNMP TO
REIMBURSE THE CITY'S RATE CASE EXPENSES ON A
MONTHLY BASIS; 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 26, 2010, Texas-New Mexico Power Company
("TNMP" or "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 l, 2010; 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:
Section l: That the October 1, 2010 effective date of the rate request submitted by
TNMP on or about August 26, 2010, 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: Subject to the right to terminate employment at any time, the City of
Friendswood hereby authorizes the hiring of the law firm of Lloyd Gosselink Rochelle &
Townsend 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.
Section 4: That the City's reasonable rate case expenses shall be reimbursed by
TNMP. Under no circumstances shall the City of Friendswood be responsible to Lloyd
Gosselink Rochelle and Townsend, P.C., or consultants hired by Lloyd Gosselink Rochelle and
Townsend, P.C., for any rate case expenses resulting from this case (Statement of Intent to
change electric delivery rates).
Section 5: That the City's reasonable rate case expenses shall be reimbursed by
TNMP on a monthly basis, and within 14 calendar days of receipt by TNMP of a request far
reimbursement.
R2010-35 2
Section 6: 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 7: 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 Christopher Brewster, at Lloyd Gosselink Rochelle & Townsend, P.C., 816 Congress Avenue,
Suite 1900, Austin, Texas 78701.
PASSED,APPROVED AND RESOLVED on this 13th day of Sentember,2010.
r
avid J.H. Smith
Mayor
ATTEST:
U u a�� ��` �R��M�s
Melinda Welsh, TRMC � p
City Secretary v �
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