HomeMy WebLinkAboutResolution No. 2003-44 RESOLUTION NO. R2003-44
RESOLUTION OF THE CITY OF FRIENDSWOOD
DIRECTING TEXAS-NEW MEXICO POWER COMPANY
TO FILE CERTAIN INFORMATION WITH THE CITY OF
FRIENDSWOOD, TEXAS; SETTING A PROCEDURAL
SCHEDULE FOR THE GATHERING AND REVIEW OF
NECESSARY INFORMATION IN CONNECTION
THEREWITH; PROVIDING FOR THE ANALYSIS OF
WHETHER TNMP'S EXISTING TRANSMISSION AND
DISTRIBUTION RATES ARE REASONABLE;
AUTHORIZING THE HIRING OF LEGAL COUNSEL AND
CONSULTANTS; REQUIRING THE REIMBURSEMENT
OF THE CITY OF FRIENDSWOOD'S RATE CASE
EXPENSES;
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WHEREAS, the City of Friendswood is a regulatory authority under the Public Utility
Regulatory Act (PURA) and has original jurisdiction over the transmission and distribution rates
of Texas-New Mexico Power Company ("TNMP") to determine if such rates are just and
reasonable; and
WHEREAS, Sections 36.003 and 36.151 of PURA empower a regulatory authority, on
its own motion or on a complaint by any affected person, to determine whether the existing rates
of any public utility for any service are unreasonable or in any way in violation of any provision
of law, and upon such determination, to determine the just and reasonable rates; and
WHEREAS, the City of Friendswood has reason to believe that TNMP is overearning
and its rates are excessive; and
WHEREAS, the City Council of the City of Friendswood desires, on its own motion, to
exercise its authority under Sections 36.003 and 36.151 of PURA; and
WHEREAS, a procedural schedule should be established for the filing of rate
information by TNMP, procedures to be followed to obtain and review information from TNMP,
and an analysis of such information by the City's staff and consultants; now, therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITI' OF
FRIENDSWOOD, TEXAS:
Section 1. This resolution constitutes notice of the City's intent to proceed with an
inquiry into the transmission and distribution rates charged by TNMP within the City's
municipal limits. On or before twenty-one (21) days after the effective date of this resolution,
TNMP shall file with the City of Friendswood, information that demonstrates good cause for
showing that TNMP's transmission and distribution rates should not be reduced. TNMP shall
file with the City of Friendswood information for the calendar year ending December 31, 2002,
regarding TNMP's cost of service elements as detailed by the table included as "Attachment A"
to this resolution, along with all associated workpapers. TNMP shall also provide the last two
Annual Reports of T`NMP and any memorandum, reports, studies and evaluation, of TNMP's
financial performance that may have been considered by TNMP management and TNMP's
consultants or attorneys in preparing these annual reports; the most recent 10-K and 10-Q filings
at the Securities and Exchange Commission, and all operation and financial reports of TNMP
provided to TNMP management or its parent company's management in 2002 and 2003.
Testimony need not be prepared, but a narrative description shall be provided sufficient to
describe the information. In addition, TNMP shall file with the City of Friendswood revenues
and expenses associated with the provision of street lighting service within the municipal limits
during 2000, 2001 and 2002.
Section 2. City's designated representatives shall have the right to obtain additional
information from TNMP through the filing of requests for information, which shall be responded
to within seven (7) days from the receipt of such request for information.
Section 3. City's designated representatives, acting in coordination with other cities
reviewing TNMP's rates, shall analyze TNMP's filing and information and report their findings
and conclusions to the City.
Section 4. Subject to the right to terminate employment at any time, the City of
Friendswood hereby authorizes Geoffrey Gay and Steven Porter with the law firm of Lloyd,
Gosselink, Blevins, Rochelle, Baldwin & Townsend and other qualified consultants to review
TNMP's existing rates and to assist the City of Friendswood in any necessary ratemaking and to
prosecute any appeals to the Texas Public Utility Commission or court.
Section 5. TNMP shall reimburse the City for the reasonable costs of attorneys and
consultants upon presentation of invoices by the City.
Section 6. A certified copy of this resolution shall be sent to TNMP's representative.
PASSED,APPROVED AND RESOLVED this 3rd day of November 2003.
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Kimball W. Brizendine, Mayor
ATTEST:
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Deloris McKenzie, T C
City Secretary
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