(7)(b)
CITY COMMISSION REGULAR MTG
- Meeting Date:
- 05/03/2023
- Title:
- Approval of Resolution denying Texas-New Mexico Power Company's application to amend its Distribution Cost Recovery Factor ("DCRF")
- Submitted For:
- Jon Branson
- Submitted By:
- Jon Branson, Management Services
- Department:
- Management Services
Information
ACTION REQUEST
Consider approval of Resolution No. 23 - 050 denying Texas-New Mexico Power Company's application for approval to amend its distribution costs recovery factor to increase distribution rates within the City of Texas City and the hiring of Legal Counsel, Llyod Gosselink - Attorneys at Law, for consulting services.
BACKGROUND (Brief Summary)
On April 5, 2023, Texas-New Mexico Power Company (“TNMP” or “Company”) filed an Application for Approval to Amend its Distribution Cost Recovery Factor (“DCRF”) to increase distribution rates within each of the cities in their service area. In the filing, the Company asserts that it is seeking an increase in distribution revenues of $14,800,834.
The resolution authorizes the City to join with the Cities Served by TNMP to evaluate the filing, determine whether the filing complies with law, and if lawful, to determine what further strategy, including settlement, to pursue.
Purpose of the Resolution:
The purpose of the Resolution is to deny the DCRF application proposed by TNMP.
Explanation of “Be It Resolved” Paragraphs:
1. This section authorizes the City to participate with TNMP Cities as a party in the Company’s DCRF filing, PUC Docket No. 54807.
2. This section authorizes the hiring of Lloyd Gosselink and consultants to review the filing, negotiate with the Company, and make recommendations to the City regarding reasonable rates. Additionally, it authorizes TNMP Cities to direct any necessary administrative proceedings or court litigation associated with an appeal of this application filed with the PUC.
3. This paragraph finds that the Company’s application is unreasonable and should be denied.
4. This section states that the Company’s current rates shall not be changed.
5. The Company will reimburse Cities for their reasonable rate case expenses. Legal counsel and consultants approved by TNMP Cities will submit monthly invoices that will be forwarded to TNMP for reimbursement.
6. This section recites that the Resolution was passed at a meeting that was open to the public and that the consideration of the Resolution was properly noticed.
7. This section provides that TNMP and counsel for TNMP Cities will be notified of the City’s action by sending a copy of the approved and signed Resolution to counsel.
The resolution authorizes the City to join with the Cities Served by TNMP to evaluate the filing, determine whether the filing complies with law, and if lawful, to determine what further strategy, including settlement, to pursue.
Purpose of the Resolution:
The purpose of the Resolution is to deny the DCRF application proposed by TNMP.
Explanation of “Be It Resolved” Paragraphs:
1. This section authorizes the City to participate with TNMP Cities as a party in the Company’s DCRF filing, PUC Docket No. 54807.
2. This section authorizes the hiring of Lloyd Gosselink and consultants to review the filing, negotiate with the Company, and make recommendations to the City regarding reasonable rates. Additionally, it authorizes TNMP Cities to direct any necessary administrative proceedings or court litigation associated with an appeal of this application filed with the PUC.
3. This paragraph finds that the Company’s application is unreasonable and should be denied.
4. This section states that the Company’s current rates shall not be changed.
5. The Company will reimburse Cities for their reasonable rate case expenses. Legal counsel and consultants approved by TNMP Cities will submit monthly invoices that will be forwarded to TNMP for reimbursement.
6. This section recites that the Resolution was passed at a meeting that was open to the public and that the consideration of the Resolution was properly noticed.
7. This section provides that TNMP and counsel for TNMP Cities will be notified of the City’s action by sending a copy of the approved and signed Resolution to counsel.
RECOMMENDATION
Staff recommends approval of the attached Resolution.