HomeMy WebLinkAboutResolution No. 2003-43 RESOLUTION NO. R2003-43
A RESOLUTION OF THE CITY OF FRIENDSWOOD,
TEXAS, AUTHORIZING INTERVENTION IN TEXAS-NEW
MEXICO POWER'S TRUE-UP PROCEEDING TO BE
FILED AT THE PUBLIC UTILITY COMI��IISSION OF
TEXAS, AUTHORIZING THE JOINING WITH OTHER
INTERVENING CITIES TO COORDINATE EFFORTS TO
PROTECT MUNICIPAL AND RATEPAYER INTERESTS;
AUTHORIZING THE HIRING OF ATTORNEYS AND
CONSULTANTS; AND REQUIRING REIMBURSEMENT
OF THE CITIES' RATEMAKING COSTS
WHEREAS, the City of Friendswood, Texas 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("TNMP")within the municipal boundaries of the city; and
WHEREAS, TNMP is required by PURA § 39.262 to file an application with the Public
Utility Commission (PUC) in January 2004 to finalize stranded costs and to apply the final
stranded cost determination to the nonbypassable delivery rates of TNMP;
WHEREAS, PURA 39.262(j) sets a statutory deadline of 150 days from the date of
TNMP's application to the issuance of a PUC Final Order and the City will be served by
investigating issues affecting TNMP's stranded cost calculation as soon as possible and
participating in settlement discussions, if any, that may precede the filing of the application;
WHEREAS, TNMP has reported in excess of $300 million in stranded costs and the
final stranded cost calculation is expected to substantially affect the electric bill of TNMP's
customers including the City;
WHEREAS, pursuant to PURA §33.025, the City of Friendswood has standing to
intervene in PUC praceedings 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 coordinating with other cities
served by TNMP.
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 application to be filed with
the Public Utility Commission (PUC) in January 2004 to finalize stranded costs and to apply the
final stranded cost determination to the nonbypassable delivery rates of TNMP.
Section 2. The City is authorized to join other cities served by TNMP and to create a
Steering Committee to coordinate efforts to protect the interests of the City of Friendswood and
protect the interests of TNMP'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 filings, to represent the City of Friendswood at
the PUC to participate in any and all settlement discussions that may precede or occur after the
Company makes its filing and to prosecute any appeals as directed by the Steering Committee.
Section 4. Fees and expenses incurred by the City of Friendswood in TNMP
ratemaking matters related to these proceedings shall be promptly reimbursed by TNMP
pursuant to the Public Utility Regulatory Act.
PASSED,APPROVED,AND RESOLVED this 3�d day of November 2003.
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Kimball W. Brizendine, Mayor
ATTEST:
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Deloris McKenzie, TRMC, City Secretary
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