HomeMy WebLinkAboutResolution No. 84-23 _..� ., ,� � DS�Vp�Q � � i�� o �en swoo "� 109 WILLOWICK-PHONE 482-3323 � : � � FRIENDSWOOD, TEXAS 77546 � � � EXA THE STATE OF TEXAS X COUNTY OF GALVESTON X I, DELORIS MCKENZIE, CITY SECRETARY AND SECRETARY TO THE CITY COUNCIL OF THE CITY OF FRIENDSWOOD, GALVESTON COUNTY, TEXAS, DO HEREBY CERTIFY THAT THE ATTACHED IS A TRUE AND CORRECT COPY OF Resolution No . R-23-84, Adonting An Order Establishing Rates Which P•1ay Be Charged For Electric Service Within The Coraorate Boundaries Of The City Of Friendswood, exas , y ous on i4 ing ower ompany� . AS SAME APPEARS IN THE RECORDS IN MY OFFICE . IN WITNESS WHEREOF, I HAVE HEREUNTO SET MY HAND AND THE OFFICIAL SEAL OF THE CITY OF FRIENDSWOOD, AT MY OFFICE IN THE CITY OF FRIENDSWOOD, COUNTY OF GALVESTON, STATE OF TEXAS ON THIS THE 25thDL�Y OF October A.D. , 19$4 . � D LORI MCKENZIE, TY CRETARY AND SECRETARY TO THE CITY COUNCIL OF THE CITY OF FRIENDSWOOD, GALVESTON COUNTY, TEXAS . ` RESOLUTION NO. p,�-g 4 A RESOLUTION ADOPTING AN ORDER ESTABLISHING RATES WHICH MAY BE CHARGED FOR ELECTRIC SERVICE WITHIN THE CORPO- RATE BOUNDARIES OF THE CITY OF FRIENDSWOOD, TEXAS, BY HOUSTON LIGHTING AND POWER COMPANY. * * � * * BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FRIENDSWOOD, STATE OF TEXAS : Section 1. That the attached Rate Order, same being an order establishing rates which may be charged for electric ser- vice within the City of Houston Lighting & Power Company, is hereby in all things adopted. PASSED, APPROVED AND RESOLVED this 24thday of Septer_lber , September, 1984. Mayor 1 Attest : ty Secretary ....� , ,�` DSWppO i�� o �en swoo J '� 109 WILLOWICK-PHONE 48Y•3323 " � � � FRIENDSWOOD, TEXAS 77546 � � � EXA THE STATE OF TEXAS � COUNTY OF GALVESTON X � I, DELORIS MCKENZIE, CITY SECRETARY AND SECRETARY TO THE CITY COUNCIL OF THE CITY OF FRIENDSWOOD, GALVESTON COUNTY, TEXAS, DO HEREBY CERTIFY THAT THE ATTACHED IS A TRUE AND CORRECT COPY OF Rate Order 23-84, Relating �To Rates To BE Charged By ,Houston Lighting fx Power Comnany For Electric Utility Service Within The Corporate Limits Of The City Of Friendswood AS SAME APPEARS IN THE RECORDS IN MY OFFICE . IN WITNESS WHEREOF, I HAVE HEREUNTO SET MY HAND AND THE OFFICIAL SEAL OF THE CITY OF FRIENDSWOOD, AT MY OFFICE IN THE CITY OF FRIENDSWOOD, COUNTY OF GALVESTON, STATE OF TEXAS ON THIS THE 24th DAY OF September A.D . , 1984 .s� , DELOR S MCKENZIE, C Y ECRETARY AND SECRETARY TO THE CITY COUNCIL OF THE CITY OF FRIENDSWOOD, GALVESTON COUNTY, TEXAS . � , RATE ORDER N0. 2�_g4 AN ORDER RELATING TO RATES TO BE CHARGED BY HOUSTON LIGHTING � POWER COMPANY FOR ELECTRIC UTILITY SERVICE WITHIN THE CORPORATE LIMITS OF THE CITY OF FRIENDSWOOD, TEXAS; CONTAINING FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; PROVIDING FOR SEVER.ABILITY. * * * * * WHEREAS, on or about June 15, 1984, Houston Lighting k Power Company (the "Company") , filed with the City of Friendswood , Texas a Statement of Intent and Petition for Authority to Change Rates relating to electric utility service, and proper notice thereof was duly given; and WHEREAS, by Resolution passed 9/24 , 1984, the City Council suspended the effective date of such proposed rate in- crease until October 18, 1984; and WHEREAS, the City Council, having considered the Company' s rate increase at a public hearing for which proper notice was duly given, finds that such request is excessive ; and WHEREAS, the City Council having original jurisdiction over the matter finds that a lesser increase in rates should be pre- scribed for the Company; NOW, THEREFORE, BE IT ORDERED BY THE CITY COUNCIL OF THE CITY OF FRIENDSWOOD, STATE OF TEXAS: Section 1. The City Council of the City of Friendswood, Texas hereby finds the requested rates of the Company to be ex- cessive and unreasonable. Section 2. The City Council hereby approves and adopts the recommendations of the Department of Public Service of the City of Houston, Texas , as set out in Exhibit "A", attached hereto and incorporated herein for all purposes , and additionally finds and determines the following : I. Findings . 1. Cost of Service. The revenue requirement of the Company is $3,984,671 ,000. 00. Adjustments were made to Operations & Maintenance, Fuel Expenses and Purchased Power, Other Taxes , Federal Income Taxes and Re- turn component. a. Operations and Maintenance Expenses. Adjustments to the Company's 0 � M expenses amounted to $15,400,000.00. The ma�or adjustments include a reduction in Salaries and Wages expense of $5,367,000.00, a reduction of Employee Benefits of $732,000.00, an increase in Storm Damage of $318,000.00, a reduction in Self-Insurance of $485,000.00, a reduction in Rate Case Expenses of $349,000.00, elimination of EEI dues of $318,000.00, a reduction in Wheeling Cost of $592,000.00, a reduction in Uncollectibles of $1,898,000.00, and a reduction in Franchise Taxes of $4,566,000.00. b. Fuel Expenses and Purchased Power. The adjustment of Fuel Expenses is a reduction of $59,196,000.00. The adjustment to Purchased Power is a reduc- tion of $4,535,000.00. c. Other Taxes. The total adjustment for all Taxes Other than Federal Income Taxes is a net reduction of $3,985,000.00. The components of this adjustment are the Public Utility Commission fee, State gross receipts taxes , ad valorem taxes , State franchise taxes, State unemployment taxes , and payroll taxes. d. Federal Income Taxes. The adjustment to the Cost of Service for Federal Income Taxes is a reduction of �58,526,000.00. e. Return. The rate of return on equity is 16.00 percent. The rate of return on invested capital is 12.42 percent. 2. Invested Capital. The invested capital is determined to be $4,212,255,000.00. 3. Adjustments to Invested Capital. The adjustments to invested capital include an increase of $4,045,000.00 in Accumulated Depreciation, a reduction of $298,239,000.00 in Construction Work in Pro�ress, a reduction of $48,880,000.00 in Nuclear Fuel in Process, a reduction of -2- $22,602,000.00 in Property Held for Future Use, a reduction of_ $12,498,000.00 in Fuel Oil Inventory, a reduction of $17,420,000.00 in Storm Loss , a reduction of $12,677,000.00 in Prepayments , an increase o.f $1,211,000.00 in Insurance Reserve, and an increase of $60,056,000.00 in deferred Federal Income Taxes. 4. Revenue Deficiency. The overall revenue deficiency is $126,617,000.00. II. Conclusions . 1. The City has original jurisdiction over this case pur- suant to Section 43 of the Public Utility Regulatory Act, TEX. REV. CIV. STAT. ANN. , art. 1446c (Vernon Supp. 1984) . 2. The Company has the burden of establishing its revenue deficiency under its present rates and of establishing the amount of such deficiency that will be collected under its pro- posed rates pursuant to Section 40 of the Public Utility Re�u- latory Act. 3. The rates prescribed herein will allow the Company to recover its operating expenses together with a reasonable return on its invested capital, pursuant to provisions of Section 39 of the Public Utility Regulatory Act . 4. The rates prescribed herein will permit the Company a reasonable opportunity to earn a reasonable return upon the in- vested capital used and useful in rendering service to the pub- lic over and above its reasonably necessary operating expenses as provided by Section 39(a) of the Public Utility Regulatory Act. � 5. The rates for electric service set forth in Exhibit "A" provide just and reasonable and not unreasonably preferential, prejudicial, or discriminatory rates, and are sufficient, equit- able, and consistent in application to each class of consumer, as provided by Section 38 of the Public Utility Regulatory Act. Section 3. The City Council hereby determines , prescribes , establishes and authorizes increased rates for sale or supply of electric service by the Company within the corporate limits -3- of the City of Friendswood, Texas. Such increased rates are hereby fixed as set out in Exhibit "A", which is attached here- to, incorporated herein by this reference and made a part hereof for all purposes. Such increased rates shall become effective as to each customer for all of such customer' s regular billing periods for electric utility service which begin on or after October 18, 1984. A billing period is the interval between meter readings . The Company shall be authorized to collect such rates until such time as they may be changed, modified, amended or withdrawn in accordance with applicable statutes and ordin- ances . Section 4. The City Council hereby authorizes and directs the City Secretary to serve the Company with a certified copy of this Order which is the final �etermination and order of the City. Section S. The Company shall, within ten (10) days follow- ing the final passage and approval of this Order and thereafter whenever required by applicable statutes and ordinances and whenever required by the Mayor, file a complete schedule of rates and tariffs with the Mayor setting forth all of the Company' s rates and charges for utility service then in effect. The Mayor is authorized to review, approve and require revisions to the tariff if he determines it not to be in accordance with this Order. Section 6. Nothing contained in this Order shall be con- strued now or hereafter as limiting or modifying, in any manner, the right and power of the City under the law to regulate the rates and charges of the Company. Section 7. Al1 orders or parts of orders in conflict here- with are repealed to the extent of the conflict only. Section 8. In the event that the Company appeals from this order setting electric rates for the Company, the City hereby waives written notice of the hearing before the Public Utility Commission of Texas ("PUC") on such appeal. -4- With respect to any such appeal, the City Council hereby authorizes the City Attorney or his designees to represent the City and its citizens in any and all matters in connection with such appeal and to take any and all actions necessary and inci- dental thereto and to the resolution of the matters subject to such appeal, all as may be in the best interests of the City. Section 9. I£ any provision, section, subsection, sentence , clause, or phrase of this Order, or the application of same t� any person or set of circumstances is for any reason held to be unconstitutional, void or invalid, the validity of the remainin� port3.ons of this Order or its application to other persons or sets of circumstances shall not be affected thereby, it being the intent of the City Council in adopting this Order that no portion hereof or provision or regulation contained herein shall become inoperative or fail by reason o£ any unconstitutionality, voidness or invalidity of any other portion hereof, and all pro- visions of this Order are declared to be severable for that purpose. Section 10. The City Council officially finds, determines , recites and declares that a sufficient written notice of the date, hour, place and subject of this meeting of the City Council was posted at a place convenient to the public at the City Hall of the City for the time required by law preceding this meeting, as required by the Open Meetings Law, Article 6252-17, Texas Revised Civil Statutes Annotated, and that this meeting has beer► open to the public as required by 1aw at a11 times during which this Order and the subject matter thereof has been discussed, considered and formally acted upon. The City Council further ratifies , approves and confirms such written notice and the contents and posting thereof. PASSED, APPROVED AND ADOPTED this 24th day of September, 1984. a p L e, Mayor -5- ATTEST: C Delo s McKenz e, ty cretary -6-