HomeMy WebLinkAboutResolution No. 2001-10 1
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RESOLUTION NO. R2001-10
RATIFYING SETTLEMENT OF PUBLIC UTILITY COMMISSION
DOCKET NO. 22349 CONCERNING TEXAS-NEW MEXICO POWER
COMPANY'S APPLICATION TO ESTABLISH UNBUNDLED
TRANSMISSION AND DISTRIBUTION RATES AND AUTHORIZING
CONTINUED INVOLVEMENT IN DOCKET NO. 22349 AND
REQUIRING PAYMENT OF 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 rates and services of Texas-New
Mexico Power Company ("TNMP" or"Company"); and
WHEREAS, on March 31, 2000, TNMP filed an application with the Public Utility
Commission of Texas ("PUC") to establish transmission and distribution electric rates and such
filing was designated PUC Docket No. 22349; and
WHEREAS, the City of Friendswood intervened in PUC Docket No. 22349 in
conjunction with other Cities Served by TNMP; and
WHEREA5, the intervening Cities, in accordance with PURA, retained lawyers and
consultants and presented recommendations to the Public Utility Commission; and
WHEREAS, the parties to PUC Docket No. 22349 have entered into a "Stipulation and
Agreement" which resolves many of the issue� raised by TNMP's application and establishes
transmission and distribution rates for TNMP; and
WHEREAS, TNMP proposed a transmission and distribution revenue requirement of
$154 million and the Cities played a critical role in developing an unopposed settlement on a
revenue requirement of$125.6 million, which is only $3.6 million more than recommended by
Cities' consultants; and
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WHEREAS, the settlement reserves TNMP's claim for recovery of stranded costs to be
resolved by the PUC in the near future; and
WHEREAS, under PURA, expenses incurred by municipalities in ratemaking
proceedings are reimbursable by TNMP; and
WHEREAS, TNMP has agreed that Cities' rate case expenses are reasonable;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
FRIENDSWOOD, TEXAS:
Section 1. I'he City of Friendswood, Texas ratifies the "Stipulation and Agreement"
presented to the Public Utility Commission in Docket No. 22349.
Section 2. Continued participation in Docket No. 22349 is authorized in order to address
remaining rate issues.
Section 3. TNMP shall promptly reimburse the City for reasonable costs of attorneys
and consultants representing the City in PUC Docket No. 22349.
PASSED,APPROVED AND RESOLVED this thel9th day of March 2001.
Harold L. Whitaker
Mayor
ATTEST:
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Deloris McKenzie, T C
City Secretary