HomeMy WebLinkAboutResolution No. R2022-15 RESOLUTION NO. R2022-15
A RESOLUTION OF THE COUNCIL OF THE CITY OF FRIENDSWOOD,
TEXAS, DENYING THE APPLICATION OF TEXAS-NEW MEXICO POWER
COMPANY'S FOR APPROVAL TO AMEND ITS DISTRIBUTION COST
RECOVERY FACTOR TO INCREASE DISTRIBUTION RATES WITHIN THE
CITY; 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; REQUIRING
NOTICE OF THIS RESOLUTION TO THE COMPANY AND LEGAL
COUNSEL;AND PROVIDING FOR THE EFFECTIVE DATE THEREOF.
WHEREAS, the City of Friendswood, Texas (the "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, 2022, TNMP filed with the Commission its Application
for Approval to Amend its Distribution Cost Recovery Factor("DCRF"),Commission Docket No.
53436, seeking to increase distribution rates by$9,706,846 annually; and
WHEREAS, the City 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, electric utility customers residing in the City will be impacted by this
ratemaking proceeding if TNMP'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,
STATE OF TEXAS:
Section 1. That the City is authorized to participate with TNMP Cities in Commission
Docket No. 53436.
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,to make recommendations to the
City regarding reasonable rates, and to direct any necessary administrative proceedings or court
litigation associated with an appeal of 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 are hereby denied.
Section 4. That the Company shall 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 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.
Section 7. That this resolution shall be effective immediately upon its passage and
approval.
PASSED,APPROVED and ADOPTED by the affirmative vote of the City Council of the
City of Friendswood on this the 2nd day of May, 20
O ayor
AT ST:
L TICIA BRYSCH, �ty,ecretary OF F RIEN�
APPROVED AS TO FORM: * ' "'�' p
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KAREN HORNER, City Attorney
HACity Council\Resolutions\2022\05-02-2022\Denial Resolution-2022 TNMP DCRF.docx
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