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HomeMy WebLinkAboutResolution No. 2000-35 RESOLUTION NO. R2000-35 RESOLUTION OF THE CITY OF FRIENDSWOOD, TEXAS, AUTHORIZING INTERVENTION IN TEXAS-NEW MEXICO POWER COMPANY'S REQUEST TO INCREASE THE FUEL FACTOR AND IMPLEMENT A SURCHARGE FILED AT THE PUBLIC UTILITY COMMISSION OF TEXAS, DOCKET NO. 22636; AUTHORIZING INTERVENTION IN THE FUEL RECONCILIATION CASE TO BE FILED BY TEXAS-NEW MEXICO POWER COMPANY AT THE PUBLIC UTILITY COMMI5SION OF TEXAS; 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' RATEMAHING COSTS 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 June 5, 2000 to increase the fxed fiiel factor effective July 5, 2000; WHEREAS, TNMP's application included a request to surcharge customers to collect $24,671,304 in alleged fuel under-recoveries effective beginning September 1, 2000 and to remain in effect until December 31, 2001; WHEREAS, TNMP has informed the City of its intent to file, at the PUC, on or about June 30, 2000, a fuel reconciliation application; WHEREAS, TNMP's fuel reconciliation filing will seek PUC approval of three years of fuel costs; WHEREAS, increasing the fuel factor and surcharging fuel costs will effect 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 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 coordinating with other cities served by TNMP. NOW THEREFORE BE IT RESOLVED BY THE CITY OF FRIENDSWOOD, TEXAS: Section 1. The City is authorized to intervene in TNMP's fuel factor and surcharge case filed at the Public Utility Commission of Texas, Docket No. 22636. Section 2. The City is authorized to intervene in TNMP's fuel reconciliation case expected to be filed at the PUC on or about June 30, 2000. Section 3. The City is authorized to join other cities served by TNNIP 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 4. 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 Steering Committee. Section 5. Fees and expenses incurred by the City of Friendswood in these ratemaking matters shall be promptly reimbursed by TNMP pursuant to the Public Utility Regulatory Act. R00-35 - 2 - PASSED, APPROVED AND RESOLVED this 19 th day of June , 2000. arold L. Whitaker, Mayor City of Friendswood ATTEST: � r 9 . D oris McKenzie, T C City Secretary R00-35 - 3 -