HomeMy WebLinkAboutResolution No. R2025-41 RESOLUTION NO. R2025-41
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
FRIENDSWOOD, TEXAS, SUSPENDING THE DECEMBER 19, 2025,
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 CONTINUED COOPERATION WITH OTHER TNMP CITIES;
HIRING LLOYD GOSSELINK ROCHELLE & TOWNSEND, P.C., AND
CONSULTANTS TO NEGOTIATE AND DIRECT ANY NECESSARY
LITIGATION AND APPEALS; REQUIRING REIMBURSEMENT OF CITIES'
RATE CASE EXPENSES; REQUIRING NOTICE OF THIS RESOLUTION TO
TNMP AND LEGAL COUNSEL FOR THE GULF COAST COALITION OF
CITIES; AND PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, on or about November 14, 2025, Texas-New Mexico Power Company
("TNMP"), pursuant to the Public Utility Regulatory Act ("PURA") §§ 33.001 and 36.001, filed
with the City of Friendswood,Texas("City")a Statement of Intent to change electric delivery rates
in all municipalities exercising original jurisdiction within its service area,effective December 19,
2025; and
WHEREAS, the City is a member of a coalition of TNMP Cities and will cooperate with
the other similarly situated city members and other city participants in conducting a review of
TNMP's application and to hire and direct legal counsel and consultants to prepare a common
response and to negotiate with TNMP 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;NOW THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FRIENDSWOOD,
STATE OF TEXAS:
Section 1. The facts and matters set forth in the preamble of this resolution are hereby
found to be true and correct.
Section 2. That the December 19,2025,effective date of the rate request submitted by
TNMP on or about November 14, 2025, shall be suspended for the maximum period allowed by
law to permit adequate time to review the proposed changes and to establish reasonable rates.
Section 3. 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-
user customers residing and conducting business within municipal limits.
Section 4. Subject to the right to terminate employment at any time, the City of
Friendswood hereby authorizes the hiring of Jamie Mauldin of the law firm of Lloyd Gosselink
Rochelle&Townsend, P.C., and consultants to negotiate with TNMP, to 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 5. That the City's reasonable rate case expenses shall be reimbursed by TNMP
on a timely basis.
Section 6. That the City Secretary is hereby directed to send a copy of this resolution
to TNMP,care of Scott Seamster,Corporate Counsel,577 N.Garden Ridge Boulevard,Lewisville,
Texas 75067 and scott.seamster@txnnmenergy.com and to Jamie Mauldin, at Lloyd Gosselink
Rochelle & Townsend, P.C., 816 Congress Avenue, Suite 1900, Austin, Texas 78701 and
jmauldin@lglawfirm.com.
Section 7. This resolution shall be effective immediately upon its passage and
approval.
INTRODUCED,READ AND PASSED by the affirmative vote of the City Council of the
City of Friendswood on this the I"day of December, 2025.
MIK O AN, Mayor
ATTEST:
' �OF FRIENps�o
RA U L ARTINVZ, City Sec&y
U �
APPROVED AS TO FORM: -=
KAREN L. HORNER, City Attorney
HACity Council\Resolutions\2025\12-01-2025%esolulion-Suspending TNMP Electric Rate Increase.docx
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