HomeMy WebLinkAboutResolution No. 2005-12 RESOLUTION NO. R2005-12
A RESOLUTION OF THE CITY OF FRIENDSWOOD APPROVING AND
RATIFYING THE AGREEMENT REACHED BETWEEN PNM
RESOURCES, INC., TEXAS-NEW MEXICO POWER COMPANY AND
CITIES SERVED BY TNMP IN PUBLIC UTILITY COMMISSION
DOCKET NO. 30172 PROVIDING FOR A $13 MILLION (9.3%)
REDUCTION TO ELECTRIC TRANSMISSION AND DISTRIBUTION
RATES AND PROVIDING FOR QUALITY OF SERVICE AND
RELIABILITY STANDARDS
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WHEREAS, the City of Friendswood is a regulatory authority with jurisdiction over the
electric transmission and distribution rates and services of Texas-New Mexico Power Company
("TNMP")within municipal boundaries; and
WHEREAS, on November 03, 2003, the City of Friendswood adopted a resolution
joining with other municipalities retaining rate experts to investigate TNMP's existing electric
transmission and distribution rates; and
WHEREAS, on September 9, 2004, PNM Resources and TNMP filed an application
with the Public Utility Commission of Texas ("Commission") seeking a finding that the
proposed acquisition by PNM Resources of 100% of the common stock of TNMP's parent, TNP
Enterprises, Inc. is consistent with the public interest in accordance with PURA § 14.101, such
application being assigned Docket No. 30172; and
WHEREAS, on October 18, 2004, the City of Friendswood adopted a resolution joining
with other Cities served by TNMP authorizing intervention in PUC Docket No. 30172 due to the
City's interest in the rates and services of TNMP; and
WHEREAS, representatives of the City of Friendswood, negotiated a Stipulation with
PNM Resources and Texas-New Mexico Power Company resolving all issues in PUC Docket
No. 30172, such Stipulation being filed with the Commission on February 3, 2005; and
WHEREAS, the Stipulation provides for a $13 million (93%) decrease in the electric
transmission and distribution ("T&D") rates charged by TNMP; a $6 million credit over two
years to T&D rates associated with savings attributed to the acquisition of TNMP by PNM; a two
year freeze in T&D rates; procedures to allow price to beat customers to reap the benefits of the
rate reduction; continuation of quality of service and reliability standards with, in several
instances, associated penalties for failure to meet such standards; a commitment by PNM to
refrain from any reduction of local construction centers and personnel necessary to provide field
services and the inclusion of certain customer protections in future rate proceedings; and
WHEREAS, the Stipulation has been executed by the Public Utility Commission Staff,
the Office of Public Utility Counsel and a coalition of industrial customers.
NOW THEREFORE BE IT RESOLVED BY THE CITY OF FRIENDSWOOD,
TEXAS:
Section 1. The Stipulation filed in PUC Docket No. 30172 is found to be reasonable and
in the public interest.
Section 2. The action of the coalition of cities served by T`NMP in reaching a Stipulation
with PNM Resources and Texas-New Mexico Power Company regarding the proposed
acquisition is hereby ratified.
PASSED, APPROVED AND RESOLVED this 21st day of February 2005.
o� FR�ENp� p � � ! ,
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�y `�-C
t �O Kimball W. Brizendine
v � Mayor
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ATTEST: �j, �
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De oris McKenzie
City Secretary
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