HomeMy WebLinkAboutResolution No. 94-33 RESOLUTION N0. R94-33
A RE5QLEJTION OF THE CIT'Y QF FRIEI�SWQOt?, TEXAS
GALVESTCIN/HARRIS COiJI�iTIES, APF�€OVII3G THE STIPULATION
AND JOINT MOTIOI� FOR APPROUAL OF RA2'E INCREASE FQR
TEXAS-NEF� MEXICO POVibEB COI�4PI�NY AND REQUESTING THE
PUBLIC UTILITY CO1�INfISSION OF TEXAS TO ENTER AN ORDER
SETTING RATES THAT ARE CONSISTENT WITFF THE STrPIILATION
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WHEREAS, on March 30, 1994, Texas New Mexico Power Compaiiy ("TNP") filed a
Statem�nt of Intent to increase rates within the City of Friendswood, to
become effective May 5, 1994.
WHEREAS, after due considerati�n of TNP's original rate application, the
City Council of the City of Friendswaod, denied TNP's request on May 16,
1994;
WHEREAS, TNP appealed the City Counci�'s denial of the original rate
request to the Public Utility Commission of Te�as ("Commission"), wherein
said appeal was consolidated with Docket No. 12900, Application of Texas
New Mexico Power Company for Authority to Change Rates;
WHEREAS, the City of Friendswood participated in settlement negotiations by
and through its authorized representatives and attorneys with TNP, the
Commission's General Counsel, State of Texas, Office of Public Utility
Counsel, Northern Central and Western Cities, Panhandles Cities, Clear Lake
Cogen Ltd. , Partnership, and Texas Industrial Energy Consumers, who are all
parties in Docket No. 12900;
WHEREAS, the parties in Docket No. 12900 reached a settlement and
compromise related to TNP's proposed rate increase which would entitle TNP
only to a revenue increase of $17,500,000;
WHEREAS, the stipulation and Joint Motion for Approval reflects a
compromise, settlement and accommodation among the parties; and the revenue
increase will permit TNP a reasonable opportunity to earn a reasonable
return over and above its reasonable and necessary opera�ting expenses, as
required by Sectian 35(a) of the Public Utility Regulatory Act, Tex. Rev.
Civ. Stat. Ann. art. 1446c (Vernon Supp. 1994) ("PURA");
R94-33/LST03
WHEREAS, the rates and rate design set forth in the stipulation are just
and reasonable, are not unreasonably pr�ferential, prejudicial, or
discriminatory �ithin the meaning of PURA� S 38, and are not anti-
competitive and do not violate S�ctian 47 of PURA;
WHEREAS, the Stipulation and the proposed rates th�rein are in the public
interest;
N�JW, THEREFORE, BE IT RESOLVED, BY THE GITY COUNCI.L OF THE CITY OF
FRIEI3DSW�OD, TEXAS, THAT:
The City of Friendswood, Texas, supports and apprc�nes the Stipulation and
Joznt Motion for Agproval filed in Docke� No. 12900 and herehy request the
Public Utility Commission of Texas to enter an order approving rates and
terms consistent with the Stipulation.
PASSED, APPROVED, �D ADOP2`ED THIS 15TH DAY OF AUGUST, 1994.
�// Gl.e!G r7x+�
.
Mayor E elyn B. Newman
City of Friendsw�od
ATTE5T:
�
Deloris McKenzie, TRM
City Secretary
R94-33/LST03