R2010-130 - 2010-09-27RESOLUTION NO. R2010 -130
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 UTLITY COMMISSION DOCKET NO. 38480; AUTHORIZING
THE CITY TO JOIN WITH OTHER CITIES 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, Texas -New Mexico Power Company "TNMP filed a Statement of
Intent with the City of Pearland, Texas "City to increase its base -rate revenue
requirement for its Texas retail service area by approximately $21 million; 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, TNMP's requested rate will result in a major increase rates for
TNMP, including increases in rates for residential customers and other classes of
customers; and
WHEREAS, TNMP requested an effective date of October 1, 2010 for its
proposed increase in rates; and
WHEREAS, TNMP's requested return on equity of 11.5% will exceed that agreed
to and authorized in its most recent rate case, PUC Docket No. 36025; and
WHEREAS, TNMP's application to increase rates is comprised of a voluminous
amount of pages, including 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. R2010 -130
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.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF PEARLAND, TEXAS THAT:
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 continue its participation
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 the date proposed
by TNMP in its application.
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. 38480 and any other related proceeding before the Public Utility Commission of
Texas or in the courts.
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 after its withdrawal.
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. R2010 -130
2010.
ATTEST:
PASSED, APPROVED and ADOPTED this the 27 day of September, A.D.,
Atli aces aw
YO�(G L ,i
CI �SEC'i ARY
APPROVED AS TO FORM:
DARRIN M. COKER
CITY ATTORNEY
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la-
TOM REID
MAYOR