HomeMy WebLinkAboutResolution No. 2003-22 RESOLUTION NO. R2003-22
RESOLUTION OF THE CITY OF FRIENDSWOOD AUTHORIZING
INTERVENTION IN TEXAS-NEW MEXICO POWER COMPANY'S
PETITION TO RECONCILE FUEL COSTS INCURRED DURING THE
PERIOD JANUARY 2000 — DECEMBER 31, 2001 FILED AT THE
PUBLIC UTILITY COMMISSION OF TEXAS AND ASSIGNED DOCKET
NO. 27576, AUTHORIZING THE JOINING WITH OTHER
INTERVE1vING CITIES TO PROTECT MUlvICIPAL AND RATEPAYER
INTERESTS; AUTHORIZING THE HIRING OF ATTORNEYS AND
CONSULTANTS; AND REQUIRING REIMBURSEMENT OF THE
CITIES' RATEMAKING COSTS.
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WHEREAS, the City of Friendswood is a regulatory authority under the Public Utility
Regulatory Act ("PURA") and has exclusive original jurisdiction over the rates and services of
Texas-New Mexico Power Company ("TNMP" or "Company") within the municipal boundaries
of the city; and
WHEREAS, TNMP filed an application with the Public Utility Commission ("PUC") on
or about April 1, 2003 to reconcile fuel costs incurred during the period January l, 2000 —
December 31, 2001;
WHEREAS, TNMP's application, if granted, effects all retail customers of TNMP who
pay fuel costs through a fixed fuel factor, including the City of Friendswood and residents and
businesses located within the municipal limits of the City of Friendswood;
WHEREAS, the Company's fuel reconciliation filing seeks PUC approval of fuel related
contracts; and
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WHEREAS, T`NMP asserts that the fuel costs incurred during the reconciliation period
were reasonable and necessary to provide reliable electric service;
WHEREAS, any over-recovery balance and fuel costs found by the Commission to be
unreasonable will be used to offset TNMP's stranded costs;
WHEREAS, pursuant to PURA § 33.025, the City of Friendswood has standing to
intervene in PUC proceedings relating to the provision of electric service to the City; and
WHEREAS, the interests of the City of Friendswood and the electric customers residing
within municipal boundaries can be protected most effectively by intervention in Docket No.
27576. .
NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF FRIENDSWOOD,TEXAS:
Section 1. The City is authorized to intervene in TNMP's fuel reconciliation filing at the
Public Utility Commission of Texas, Docket No. 27576.
Section 2. The City is authorized to join other cities served by TNMP to coordinate
efforts to protect the interests of the City of Friendswood and protect the interests of T`NMP's
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 Geoffrey Gay and Steven Porter of the law firm of
Lloyd, Gosselink, Blevins, Rochelle, Baldwin & Townsend, and qualified consultants and
witnesses as may be necessary to review TNMP's filings, to represent the City of Friendswood at
the PUC and to prosecute any appeals as directed by the City.
Section 4. Fees and expenses incurred by the City of Friendswood in this ratemaking
matter shall be promptly reimbursed by T`NMP pursuant to the Public Utility Regulatory Act.
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PASSED,APPROVED AND RESOLVED this 21st day of April,2003.
�
Harold L. itaker
Mayor
ATT T:
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City Secretary
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