Res 10-089
Res 10-089
CITY COMMISSION AGENDA
- Meeting Date:
- 09/15/2010
- Title:
- Approve Suspending 10/1/10 Effective Date of TNMP Rate Change
- Submitted For:
- Nick Finan
- Submitted By:
- Linda Jennings, City Attorney Office
- Department:
- Management Services
Information
ACTION REQUEST (Brief Summary)
Approve suspending the October 1, 2010 effective date of TNMP's requested rate change to permit the City time to study the request and to establish reasonable rates. Approve cooperation with other TNMP cities. Hiring Lloyd Gosselink, attorneys and consulting services, to negotiate with the company and direct any necessary litigation and appeals. Directing TNMP to reimburse the City's rate case expenses on a monthly basis.
BACKGROUND
TNMP filed with the City a Statement of Intent to change electricity delivery rates in all municipalities exercising original jurisdiction within its service area effective October 1, 2010. The City is a member of the coalition of TNMP Cities and cooperates with other city members to negotiate with TNMP and provide necessary litigation.
TNMP filed an application on August 26, 2010 with cities retaining original jurisdiction seeking to increase rates by $20.1 million. TNMP asked the City to approve a 29.79% increase in residential rates and 3.24% in street lighting rates, along with increases for certain commercial customers. This would increase an average residential customer annually about $117.60.
Law provides that a rate request cannot become effective until at least 35 days after filing of the application. The City is allowed to suspend the rate for 90 days. If the City fails to take some action before the effective date, TNMP's rate request is deemed administratively approved.
TNMP filed an application on August 26, 2010 with cities retaining original jurisdiction seeking to increase rates by $20.1 million. TNMP asked the City to approve a 29.79% increase in residential rates and 3.24% in street lighting rates, along with increases for certain commercial customers. This would increase an average residential customer annually about $117.60.
Law provides that a rate request cannot become effective until at least 35 days after filing of the application. The City is allowed to suspend the rate for 90 days. If the City fails to take some action before the effective date, TNMP's rate request is deemed administratively approved.