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HomeMy WebLinkAboutResolution No. 91-13 RESOLUTION NO. R91-13 Texas municipalities have rights in matters of electric utility regulation specifically accorded by state law, and they are empowered to defend their actions and represent their constituents before the Public Utility Commission of Texas. These governmental bodies may choose to join with other interested parties in reviewing, negotiating, and settling electric rate matters in the best interest of their constituents and present such settlement to the Public Utility Commission. Legislation has been filed which would limit the Commission' s ability to consider such settlements unless all the parties to a rate case approve. This wauld give the power of veto to any individual party in the case, a power that would usurp the rights of the cities. It also, implies that municipalities within Texas are neither willing nor able to properly represent their constituents. THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FRIENDSWOOD, TEXAS: WHEREAS, State Law accords to municipalities in Texas the right to set electric rates within their corporate limits, which includes the right to represent their constituents before the Public Utility Commission and enter rate case settlements which they find to be in the best interest of their constituents; and WHEREAS, such settlements can shargly reduce litigation costs to constituents and consumers alike, and provide opportunity for municipalities and other parties to a rate case ta negotiate for specific rate issues of particular benefit to their constituents; and WHEREAS, such settlements, when forwarded to the Public Utility Commission af Texas for consideration, receive a full-evidence public hearing as prescribed by the Administrative Procedure and Texas Register Act; and WHEREAS, non-settling parties to a rate case have the same rights, whether the Commission is hearing a rate case or a rate case accompanied by settlement, and may present all evidence they wish, cross-examine all witnesses presented by any party, and, if the Commission rejects the settlement in favor of the original filing, retain all the rights they have in any rate case; and WHEREAS, legislation limiting the Cammission' s ability to consider a settlement unless every party agrees would pravide veto power to any individual for any reason regardless of the position taken by the municipalities; and AGENDA ITEM : ci�counci� 0��/� � _..��. 6 ��� ;�rc;�� �3ea�ied � NOW, THEREFORE BE IT RESOLVED, that the City Council of the City of Friendswood formally registers its position in support of municipalities' rights to have rate case settlements they enter duly considered before the Public Utility Commission of Texas, whether an individual party to the rate case disagrees or not, and also be FURTHER RESOLVED, that the City Council of the City of Friendswood opposes any law which would in any way restrict municipalities; rights to PUC consideration of non-unanimous settlements. PASSED, APPROVED AND RESOLVED this � day of March, 1991. Mayor Paul W. Schrader City of Friendswoad ATTEST: e o is Archer, CMC City Secretary /jt 3/14/91