HomeMy WebLinkAboutResolution No. 2010-42 , , , m , ,
RESOLUTION NO. R2010-42
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 its city limits;
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 ("City") a Statement of Intent to increase electric transmission and delivery rates
by $20.1 million on a system-wide basis within its service area effective October 2, 2010; and
WHEREAS, pursuant to PURA § 36.108, the City lawfully suspended the October 2,
2010, effective date by resolution to provide time to study the reasonableness of the Company's
application to increase rates; and
WHEREAS, the City is a member of the coalition of Cities Served by TNMP and has
cooperated with its similarly situated city members to conduct a review of the Company's
application, to hire and direct legal counsel and consultants, to prepare a common response to the
filing, to negotiate with the Company and to direct any necessary litigation appealing final city
action; 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 Cities Served by TNMP to evaluate
the merits of the Company's application have determined that the Company's requested $20.1
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:
Section 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.
Section 2. That the Company shall continue to charge its existing rates for transmission
and distribution services to customers within the City.
Section 3. 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.
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 xequired.
R2010-42 2
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 Chris Brewster, Lloyd Gosselink Rochelle & Townsend, P.C., P.O. Box 1725, Austin, Texas
78767-1725.
Section 6. That this Resolution shall be in full force and effect from and after its
passage and adoption.
PASSED,APPROVED,AND RESOLVED this 6th day of December,2010.
David J. H. Smith
Mayor
ATTEST� ` o� FR�EIy�s�
_�'-� ����� �` O
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Melinda Welsh, TRMC v o
City Secretary * *
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R2o l 0-42 3
_._ __________.__r ..---_.
Mayor
���`�� ' DAVID J.H.SMITH
�� Ci�y of�'�iendswood �uncilmembers
MICHAEL E.BARKER
� � 91D South Friendswood Drive ,IM�L
�- Friendswood;Texas 77546-4856 PATRICK J.M°GINNIS
� ,�,,, �' (281)996-3270 DE�x�sROwrr
� Fax: (281)482-1534
�'�rE� ct�yM��
ROGER ROECKER
City Secretary
MELINDA WELSH,TRMC
December 10,2010
� Mr. Chris Brewster .
Lloyd Gosselink Rochelle &Townsend,P.C.
P.O. Box 1725
Austin, TX 78767-1725
SUBJECT: Resolution No. R2010-42—Denying Texas-New Mexico Power
� Company's requested increase to its electric transmission and
. distribution rates
Dear Mr. Brewster: .
I have enclosed the above Resolution for your records. This Resolution was approved at
the City Council meeting on December 6, 2010.
If you have any questions regarding this letter,please contact me at 281-996-3270.
Sincerely,
� ���� �.�'�
Melinda Welsh, TRMC �
City Secretary
Cc: Nick Haby
Enclosure(1)