R2008-126 2008-09-08RESOLUTION NO. R2008-126
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PEARLAND, TEXAS ("CITY") AUTHORIZING A SUSPENSION
OF THE EFFECTIVE DATE OF THE TEXAS-NEW MEXICO
POWER COMPANY'S RATE INCREASE AND THE
INTERVENTION IN THE PUBLIC UTILITY COMMISSION
DOCKET NO. 36025; AUTHORIZING PARTICIPATION IN A
COALITION OF MUNICIPALITIES KNOWN AS THE ALLIANCE
OF TEXAS-NEW MEXICO POWER MUNICIPALITIES ("ATM");
AUTHORIZING PROVISION OF EXPERTS AND LEGAL
REPRESENTATION; FINDING THAT THE MEETING COMPLIES
WITH THE OPEN MEETINGS ACT; MAKING SUCH OTHER
FINDINGS AS ARE RELATED TO THE SUBJECT; AND
DECLARING AN EFFECTIVE DATE.
WHEREAS, on August 29, 2008 Texas-New Mexico Power Company ("TNMP")
filed a statement of intent to Increase rates for its transmission and distribution
operations; and
WHEREAS, TNMP's requested rate will result in a 23.79% increase in residential
distribution rates, an 82.9% increase for small commercial customers and a 78.5%
increase in the charge for street lights; and
WHEREAS, TNMP's requested 11.25% return on equity is unusually high; and
WHEREAS, TNMP's application to increase rates is 3,209 pages of testimony,
schedules and workpapers; and
WHEREAS, due to the complexity of TNMP's rate filing It is not possible to
review the requested increase in rates unless the effective date is suspended for ninety
days as permitted by law; and
WHEREAS, the proposed rate increase requires the specialized expertise of
lawyers and other experts who have experience analyzing utility rate requests; and
RESOLUTION NO. 2008-126
WHEREAS, in order to maximize the efficient use of resources and expertise in
reviewing and analyzing TNMP's requested rate increase, it is most beneficial for the
city to coordinate efforts with a coalition of other similarly situated cities.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS:
Section 1. The findings set out in the preamble to this resolution are in all
things approved and adopted.
Section 2. That the City of Pearland is authorized to join with other cities in a
coalition of cities known as the Alliance of Texas-New Mexico Power Municipalities
("ATM") with the understanding that the steering committee of ATM is to provide
direction and guidance to the lawyers who are representing said cities.
Section 3. That the City does hereby suspend the proposed effective date for
TNMP's request for an increase in rates for a period of 90 days from October 3, 2008.
Section 4. That the City employs the law firm of Herrera & Boyle, PLLC to
represent and act in the best interests of the City in the TNMP rate case, PUC Docket
No. 36025 and any other related proceeding.
Section 5. That the City retains its right to withdraw from ATM at any time
without any financial obligation to the remaining coalition members or the experts or
lawyers hired therefore.
Section 6. That TNMP shall reimburse the City for reasonable rate case
expenses and in a timely manner
Section 7. That 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 8. That this resolution shall become effective from and after its
passage.
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RESOLUTION NO. 2008-126
PASSED, APPROVED and ADOPTED this 8th day of September 2
EID
MAYOR
ATTEST:
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UN R ~_,
ITY CRETAR _ ......
APPROVED AS TO FORM:
DARRIN M. COKER
CITY ATTORNEY