HomeMy WebLinkAboutResolution No. 2000-43 RESOLUTION NO. R2000-43
RESOLUTION OF THE CITY OF FRIENDSWOOD, TEXAS,
RATIFYING THE SETTLEMENT AGREEMENT REACHED IN PUC
DOCKET NO. 22636 REGARDING TEXAS-NEW MEXICO POWER
COMPANY'S REQUEST TO INCREASE ITS FUEL FACTOR AND
IMPOSE A SURCHARGE TO RECOVER UNDER-COLLECTED FUEL
COSTS.
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WHEREAS, on or about June 5, 2000 Texas-New Mexico Power Company (TNMP or
Company) filed a request with the Public Utility Commission (PUC) to increase its fuel factor
and to impose a surcharge to recover under-collected fuel costs that was designated as Docket
No. 22636;
WHEREAS, the City of Friendswood intervened in Docket No. 22636 to protect the
interests of its residents;
WHEREAS, the Public Utility Regulatory Act and the Substantive Rules of the PUC
permit electric utilities to recover current fuel costs and preclude challenges to the
reasonableness of such costs until a future fuel reconciliation case;
WHEREAS, there is no dispute that the price TNMP pays to purchase electricity is
adversely impacted by recent increases in the price of natural gas, causing the Company to fail to
recover its fuel costs;
WHEREAS, the City of Friendswood, in cooperation with other Gulf Coast Cities,
participated fully in PUC Docket No. 22636 and achieved concessions from TNMP to remove
$500,000 from the fuel factor and $972,000 from the surcharge;
WHEREAS, Counsel for the City of Friendswood recommends ratification or no
opposition to a settlement agreement reached in PUC Docket No. 22636 as producing results that
achieve all that is possible under circumstances where parties are precluded from litigating the
reasonableness of costs;
WHEREAS, no party to Docket No. 22636 has expressed any opposition to the
Settlement Agreement.
THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
FRIENDSWOOD, TEXAS:
Section 1. The Settlement Agreement reached in PUC Docket No. 22636 is ratified
and approved.
PASSED,APPROVED AND RESOLVED this 215t day of August, 2000.
arold L. Whitaker
Mayor
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D loris McKenzie, RM�
City Secretary