R2008-152 2008-11-24RESOLUTION NO. R2008-152
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PEARLAND, TEXAS, DENYING THE RATE INCREASE
PROPOSED BY TEXAS-NEW MEXICO POWER COMPANY
("TNMP"); FINDING THAT THE MEETING COMPLIED WITH THE
OPEN MEETINGS ACT; AND DECLARING AN EFFECTIVE
DATE.
WHEREAS, TNMP filed an application with the City Secretary on August 29,
2008 for an increase in rates of approximately $12 million. The City has suspended the
effective date until December 22, 2008; and
WHEREAS, the City has joined with a coalition of cities known as the Alliance of
TNMP Municipalities ("ATM"); and
WHEREAS, the application to increase rates by TNMP ("Statement of Intent")
has a been filed at the Public Utility Commission of Texas ("PUC"); and
WHEREAS, the date for filing ATM's testimony has been set by the PUC for
January 7, 2009; and
WHEREAS, the experts hired by ATM have not finished their review of the three
thousand pages of testimony, exhibits and workpapers in TNMP's rate filing package;
and
WHEREAS, it is necessary for the City to act before December 22, 2008 on
TNMP's rate request; and
WHEREAS, the experts hired by ATM have preliminarily concluded that the size
of the rate increase requested by TNMP is not justified; and
WHEREAS, based upon the preliminary review of the City's and ATM's experts
the requested rate increase should be denied.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS
RESOLUTION NO. 2008-152
Section 1. The findings set out in the preamble to this resolution are in all
things approved and adopted.
Section 2. The City hereby denies TNMP's request to increase rates and in
support thereof finds that:
a) The Statement of Intent fails to provide sufficient information to justify the
requested increase in rates or to justify the changes set forth in the
attached tariffs;
b) As a preliminary matter, the requested increases for residential, small
business and street lighting customers appears excessive.
Section 3. The City Secretary shall notify TNMP by sending copy of same to
Scott Seamster, Corporate Counsel, 225 E. John Carpenter Freeway, Suite 1500,
Irving, Texas 75062-2282 and ATM shall be notified by sending a copy to Jim Boyle,
Herrera & Boyle, PLLC, Suite 1250, 816 Congress Avenue, Austin, Texas 78701.
Section 4. 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 5. This resolution shall become effective from and after its passage.
PASSED, APPROVED and ADOPTED this the 24th day of November, A. D.,
2008.
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TOM REID
MAYOR
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RESOLUTION NO. 2008-152
ATTEST:
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ITY S CRETARY ~~~~`
APPROVED AS TO FORM:
DARRIN M. COKER
CITY ATTORNEY
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