R2018-108 2018-06-25 RESOLUTION NO. R2018-108
A Resolution of the City Council of the City of Pearland, Texas
("City") suspending the effective date for, ninety days, in connection
with the rate increase filing made on about on May 30, 2018 by
Texas-New Mexico Power Company; finding that the meeting
complies with the Open Meetings Act; making other findings and
provisions related to the subject; and declaring an effective date.
WHEREAS, Texas-New Mexico Power Company ("TNMP" or "Company") filed a
Statement of Intent with the City on or about May 30, 2018, to change its rate schedules
within the corporate limits of this municipality, specifically to increase its annual revenue
by approximately $33.3 million, which equates to an increase of approximately 10.9
percent; and
WHEREAS, the City is a regulatory authority under the Public Utility Regulatory
Act ("PURA") and under Chapter 33, §33.001 et seq. of PURA has exclusive original
jurisdiction over TNMP's rates, operations, and services within the municipality; and
WHEREAS, in order to maximize the efficient use of resources and expertise in
reviewing, analyzing and investigating TNMP's rate request and its changes in tariffs it is
prudent to coordinate the City's efforts with a coalition of similarly situated municipalities;
and
WHEREAS, the City, in matters regarding applications by TNMP to change rates,
has in the past joined with other local regulatory authorities to form an alliance of cities
known as Alliance of Texas-New Mexico Company Municipalities ("ATM"), and hereby
continues its participation in ATM; and
WHEREAS, TNMP's rate request consists of a voluminous amount of information
including TNMP's rate-filing package, exhibits, schedules, and workpapers; and
WHEREAS, TNMP's rate application is the Company's first general rate case
since about 2010; and
WHEREAS, TNMP proposed July 5, 2018, as the effective date for its requested
increase in rates; and
RESOLUTION NO. R2018-108
WHEREAS, it is not reasonably possible for the City to complete its review of
TNMP's filing by July 5, 2018; and
WHEREAS, the City will need an adequate amount of time to review and
evaluate TNMP's rate application to enable the City to adopt a final decision as a local
regulatory authority with regard to TNMP's requested rate increase.
WHEREAS, the City will require the assistance of specialized legal counsel and
rate experts to review the merits of TNMP's application to increase rates; and
WHEREAS, TNMP submitted a corresponding application with the Public Utility
Commission of Texas on the same date as it filed its application with the City and the
Public Utility Commission's decision could have a direct impact on the City and its
citizens who are customers of TNMP and in order for the City's participation to be
meaningful it is important that the City intervene in any such proceedings at the Public
Utility Commission related to TNMP's application to increase rates, including any
appeals taken from the Commission's final order, now therefore
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS:
Section 1. The findings set out in the preamble are in all things approved and
incorporated herein as if fully set forth.
Section 2. TNMP's proposed effective date for its proposed increase in rates is
hereby SUSPENDED for ninety days beyond July 5, 2018.
Section 3. The statutory suspension period may be further extended if TNMP does
not provide proper public notice of its request to increase rates, if its rate-filing package
is materially deficient, or by agreement.
Section 4. The City shall participate in a coalition of cities known as the Alliance of
Texas-New Mexico Company Municipalities ("ATM"), and authorizes intervention in
proceedings related to TNMP's Statement of Intent before the Public Utility Commission
of Texas and related proceedings in courts of law; and
Section 5. The City hereby orders TNMP to reimburse the City's rate case expenses
consistent with the Public Utility Regulatory Act and that TNMP shall do so on a monthly
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RESOLUTION NO. R2018-108
basis and within 30 days after submission of the City's invoices for the City's reasonable
costs associated with the City's activities related to this rate review or related to
proceedings involving TNMP before the City, the Public Utility Commission of Texas, or
any court of law.
Section 6. Subject to the right to terminate employment at any time, the City retains
and authorizes the law firm of Herrera Law & Associates, PLLC to act as Special
Counsel with regard to rate proceedings involving TNMP before the City, the Public
Utility Commission of Texas, or any court of law, and to retain such experts as may be
reasonably necessary for review of TNMP's rate application subject to approval by the
steering committee of the ATM.
Section 7. The City, in coordination with the ATM, shall review the invoices of the
lawyers and rate experts for reasonableness before submitting the invoices to TNMP for
reimbursement.
Section 8. A copy of this resolution shall be sent to Mr. Alfred R. Herrera, Herrera
Law & Associates, PLLC, 816 Congress Ave., Suite 950, Austin, Texas 78701, and a
courtesy copy to TNMP's local representative.
Section 9. The meeting at which this resolution was approved was in all things
conducted in strict compliance with the Texas Open Meetings Act, Texas Government
Code, Chapter 551.
Section 10. This resolution shall become effective from and after its passage.
PASSED, APPROVED and ADOPTED this the 25th day of June, A.D., 2018.
TOM REID
MAYOR
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RESOLUTION NO. R2018-108
ATTEST:
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APPROVED AS TO FORM:
DARRIN M. COKER
CITY ATTORNEY
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