R2009-056 - 2009-04-13RESOLUTION NO. R2009-56
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PEARLAND, TEXAS DENYING THE SUPPLEMENTAL APPLICATION
FOR AN INCREASE IN RATES 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 $9 million. The City denied the
requested increase in rates and TNMP appealed the decision of the City Council to the
Public Utility Commission of Texas ("PUC"); and
WHEREAS, TNMP filed a supplemental application for an increase in rates on or
about April 1, 2009. The supplemental application asks for an increase in rates of $18.2
million which is more than 200% greater than the original application; 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 been filed at the Public Utility Commission of Texas ("PUC") and has been
docketed as PUC Docket No. 36025. The supplemental application has been joined
with the original application at the PUC; and
WHEREAS, the supplemental application by TNMP requests a base rate
increase of 31 % for residential ratepayers and for municipal lighting an increase of 88%;
and
WHEREAS, the experts hired by ATM have not finished their review of the
supplemental filing but preliminarily the huge requested increases for residential, small
business and municipal lighting do not appear justified; and
RESOLUTION NO. R2009-56
WHEREAS, based upon the preliminary review by the City's and ATM's experts
the supplemental requested increase in rates should be denied; now therefore,
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. The City hereby denies TNMP's supplemental request to increase
rates and in support thereof finds that:
a) The supplemental application of TNMP 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 13th day of April, A.D.,
2009.
~oyry ~-~
TOM REID
MAYOR
2
RESOLUTION NO. R2009-56
ATTEST:
YO GL N ,T
CI SE ETARY
APPROVED AS TO FORM:
DARRIN M. COKER
CITY ATTORNEY