R94-49 09-12-94RESOLUTION NO. 1{94-49
A RESOLUTION APPROVING THE STIPULATION AND JOINT MOTION
FORAPPROVAL OF RATE INCREASE FOR TEXAS-NEWMEXICO POWER
COMPANY AND REQUESTING THE PUBLIC UTILITY COMMISSION OF
TEXAS TO ENTERAN ORDER SETTINGRATES THAT ARECONSISTENT
WITH THE STIPULATION
WHEREAS, on March 30, 1994, Texas-New Mexico Power Company
("TNP") filed a Statement of Intent to increase rates within the
City of Pearland, 1994, to become effective May 5, 1994;
WHEREAS, after due consideration of TNP's original rate
application, the City Council of the City of Pearland denied TNP's
request on May 9, 1994;
WHEREAS, TNP appealed the City Council's denial of the
original rate request to the Public Utility Commission of Texas
("Commission"), wherein said appeal was consolidated with Docket
No. 12900, Application of Texas-New Mexico Power Company for
Authority to Change Rates;
WHEREAS, the City of Pearland participated in settlement
negotiations by and through its authorized representatives and
attorneys with TNP, the Commission's General Counsel, State of
Texas, Office of Public Utility Counsel, Northern, Central and
Western Cities, Panhandles Cities, Clear Lake Cogen Ltd.,
Partnership, and Texas Industrial Energy Consumers, who are all
parties in Docket No. 12900;
WHEREAS, the parties in Docket No. 12900 reached a settlement
and compromise related to TNP's proposed rate increase which would
entitle TNP only to a revenue increase of $17,500,000;
WHEREAS, the Stipulation and Joint Motion for Approval
1
reflects a compromise, settlement and accommodation among the
parties, and the revenue increase will permit TNP a reasonable
opportunity to earn a reasonable return over and above its
reasonable and necessary operating expenses, as required by Section
35 (a) of the Public Utility Regulatory Act, Tex. Rev. Civ. Stat.
Ann. art. 1446c (Vernon Supp. 1994) ("PURA");
WHEREAS, the rates and rate design set forth in the
Stipulation are just and reasonable, are not unreasonably
preferential, prejudicial, or discriminatory within the meaning of
PURA §, and are not anti-competitive and do not violate Section 47
of PURA;
WHEREAS, the Stipulation andthe proposed rates therein are in
the public interest;
NOW, THEREEFORE, BE IT RESOLVED, by the City Council of
Pearland, that:
The City of Pearland supports and approves the Stipulation and
Joint Motion for Approval filed in Docket No. 12900 and hereby
requests the Public Utility Commission of Texas to enter an order
approving rates and terms consistent with the Stipulation.
APPROVED on this /~-~ day of ~ j~~-'~
~/~/.~ 1994.
C.V(./~CO~~''''~
MAYOR
RESOLUTION NO. R94-49
ATTEST:
APPROVED AS TO FORM: