HomeMy WebLinkAboutResolution No. 2021-12 RESOLUTION NO. R2021-12
A RESOLUTION OF THE CITY OF FRIENDSWOOD, TEXAS
FINDING THAT TEXAS-NEW MEXICO POWER COMPANY'S
APPLICATION FOR APPROVAL TO AMEND ITS
DISTRIBUTION COST RECOVERY FACTOR TO INCREASE
DISTRIBUTION RATES WITHIN THE CITY SHOULD BE
DENIED; AUTHORIZING PARTICIPATION WITH TNMP
CITIES; AUTHORIZING THE HIRING OF LEGAL COUNSEL
AND CONSULTING SERVICES; FINDING THAT THE CITY'S
REASONABLE RATE CASE EXPENSES SHALL BE
REIMBURSED BY THE COMPANY; FINDING THAT THE
MEETING AT WHICH THIS RESOLUTION IS PASSED IS
OPEN TO THE PUBLIC AS REQUIRED BY LAW;REQUIRING
NOTICE OF THIS RESOLUTION TO THE COMPANY AND
LEGAL COUNSEL.
WHEREAS, the City of Friendswood, Texas ("City") is an electric utility customer
of Texas-New Mexico Power Company ("TNMP" or "Company") with an interest in the
rates and charges of TNMP; and
WHEREAS, the Cities Served by Texas-New Mexico Power Company ("TNMP
Cities") is a coalition of similarly situated cities served by TNMP that have joined together
to efficiently and cost effectively review and respond to electric issues affecting rates
charged in TNMP's service area in matters before the Public Utility Commission
("Commission") and the courts; and
WHEREAS, on or about April 5, 2021, TNMP filed with the Commission an
Application for Approval to Amend its Distribution Cost Recovery Factor ("DCRF"),
Commission Docket No. 51959, seeking to increase distribution rates by $13,959,505
million annually; and
WHEREAS, the City of Friendswood will cooperate with TNMP Cities in
coordinating their review of TNMP's DCRF filing with designated attorneys and
consultants, prepare a common response, negotiate with the Company, and direct any
necessary litigation, to resolve issues in the Company's filing; and
WHEREAS, all electric utility customers residing in the City will be impacted by this
ratemaking proceeding if 's Application is granted; and
WHEREAS, working with the TNMP Cities to review the rates charged by TNMP
allows members to accomplish more collectively than each city could do acting alone; and
WHEREAS, TNMP Cities' members and attorneys recommend that members who have
retained original jurisdiction over electric utility rates deny TNMP's DCRF.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
FRIENDSWOOD, TEXAS:
Section 1. That the City is authorized to participate with TNMP Cities in Commission
Docket No. 51959.
Section 2. That, subject to the right to terminate employment at any time, the
City of Friendswood hereby authorizes the hiring of the law firm of Lloyd Gosselink
Rochelle & Townsend, P.C. and consultants to negotiate with the Company, make
recommendations to the City regarding reasonable rates, and to direct any necessary
administrative proceedings or court litigation associated with an appeal TNMP's DCRF
application.
Section 3. That the rates proposed by TNMP to be recovered through its DCRF
charged to customers located within the City limits should be denied.
Section 4. That the Company should continue to charge its existing rates to customers
within the City.
Section 5. That the City's reasonable rate case expenses shall be reimbursed in full by
TNMP within 30 days of the adoption of this Resolution, and within 30 days of presenting
monthly bills to TNMP thereafter.
Section 6. That it is hereby officially found and determined that the meeting at
which this Resolution is passed is open to the public as required by law and the public
notice of the time, place, and purpose of said meeting was given as required.
R2021-12 2
Section 7. That a copy of this Resolution shall be sent to Scott Seamster, Associate
General Counsel, Texas-New Mexico Power Company, 577 N. Garden Ridge Blvd.,Lewisville,
Texas 75067, and to Thomas Brocato, General Counsel to TNMP Cities, at Lloyd Gosselink
Rochelle & Townsend, P.C.!, P.O. Box 1725, Austin, TX 78767-1725, or
tbrocato@lglawfirm.com.
PASSED,APPROVED AND ADOPTED on this 3rd day of May,2021.
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Mayor
ATTEST:
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Leticia Brysch 00 0
City Secretary
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