HomeMy WebLinkAboutResolution No. 2002-38 RESOLUTION NO. R2002-38
RESOLUTION OF THE CITY OF FRIENDSWOOD, TEXAS,
AUTHORIZING INTERVENTION IN RELIANT ENERGY, INC.'S
PETITION TO RECONCILE FUEL COSTS INCURRED DURING THE
PERIOD AUGUST 1, 1997 —JANUARY 30, 2002 FILED AT THE PUBLIC
UTILITY COMMISSION OF TEXAS AND ASSIGNED DOCKET NO.
26195; AUTHORIZING THE JOINING WITH OTHER INTERVENING
CITIES TO PROTECT MUNICIPAL 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
Reliant Energy, Inc. ("Reliant" or"Company")within the municipal boundaries of the city; and
WHEREAS, Reliant filed an application with the Public Utility Commission ("PUC") on
or about July 1, 2002 to reconcile fuel costs incurred during the period August 1, 1997 —January
30, 2002;
WHEREAS, Reliant's application, if granted, effects all retail customers of Reliant 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, Reliant's fuel reconciliation filing seeks PUC approval of fuel related
UC
contracts; and
WHEREAS, Reliant asserts that the fuel costs incurred during the reconciliation period
were reasonable and necessary to provide reliable electric service;
WHEREAS, Reliant claims that it has under-recovered reasonable fuel 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
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R2002-38
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 26195.
NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF FRIENDSWOOD,TEXAS:
Section 1. The City is authorized to intervene in Reliant's fuel reconciliation filing at the
Public Utility Commission of Texas, Docket 26195.
Section 2. The City is authorized to join other cities served by Reliant to coordinate
efforts to protect the interests of the City of Friendswood and protect the interests of Reliant'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 Kristen Doyle of the law firm of
Lloyd, Gosselink, Blevins, Rochelle, Baldwin & Townsend, and qualified consultants and
witnesses as may be necessary to review Reliant'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 Reliant pursuant to the Public Utility Regulatory Act.
PASSED, APPROVED AND RESOLVED this the 151h day of July 2002.
Harold L. Whitaker
Mayor
AT EST:
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Deloris McKenzie, RM
City Secretary
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R2002-38