(7)(d)
CITY COMMISSION REGULAR MTG
- Meeting Date:
- 12/03/2025
- Title:
- Resolution 2025 - 150 Suspending TNMP's December 19th, Request Rate Change
- Submitted For:
- Jon Branson
- Submitted By:
- Jon Branson, Management Services
- Department:
- Management Services
Information
ACTION REQUEST
Approval of Resolution 2025-150 suspending the December 19, 2025, effective date of the Company's (Texas New Mexico Power Company) TNMP's rate increase for the maximum period permitted by law to allow the City, working in conjunction with other cities served by TNMP, to evaluate the filing, determine whether the filing complies with law, and if lawful, to determine with further strategy, including settlement, to pursue.
BACKGROUND (Brief Summary)
On Friday, November 14th, Texas New Mexico Power (TNMP) Electric Company filed a rate case application with cities retaining original jurisdiction or legal authority over its rates. Simultaneously, they filed the rate request at the Public Utility Commission. In the application, TNMP is seeking to increase rates on a system-wide basis by $34 million annually. Overall, this is a 5% increase to rates. If approved, an average residential customer will see a monthly increase of $5.20 to their electric bill.
Approval of the proposed Resolution will do the following:
1. That the December 19, 2025, effective date of the rate request submitted by TNMP on or about November 14, 2025, be suspended for the maximum period allowed by law to permit adequate time to review the proposed changes and to establish reasonable rates.
2. That the City is authorized to cooperate with other cities served by TNMP to coordinate efforts to protect the interests of the City and protect the interests of TNMP's end use customers residing and conducting business within Municipal limits.
3. Subject to the right to terminate employment at any time, the City of Texas City hereby authorizes the hiring of Jamie Mauldin of the law firm of Lloyd Gosselink and a consultant to negotiate with the Company, make recommendations regarding reasonable rates and to direct any necessary administrative proceedings or court litigation associated with an appeal of a rate ordinance and the rate case filed with the City or Public Utility Commission.
4. That the City's reasonable rate case expenses shall be reimbursed by TNMP.
5. That it is hereby officially found and determined that the meeting at which the Resolution is being considered is open to the public.
6. A copy of this Resolution shall be mailed and emailed to Jamie Mauldin, at Lloyd Gosselink Rochelle & Townsend. P.C.
Approval of the proposed Resolution will do the following:
1. That the December 19, 2025, effective date of the rate request submitted by TNMP on or about November 14, 2025, be suspended for the maximum period allowed by law to permit adequate time to review the proposed changes and to establish reasonable rates.
2. That the City is authorized to cooperate with other cities served by TNMP to coordinate efforts to protect the interests of the City and protect the interests of TNMP's end use customers residing and conducting business within Municipal limits.
3. Subject to the right to terminate employment at any time, the City of Texas City hereby authorizes the hiring of Jamie Mauldin of the law firm of Lloyd Gosselink and a consultant to negotiate with the Company, make recommendations regarding reasonable rates and to direct any necessary administrative proceedings or court litigation associated with an appeal of a rate ordinance and the rate case filed with the City or Public Utility Commission.
4. That the City's reasonable rate case expenses shall be reimbursed by TNMP.
5. That it is hereby officially found and determined that the meeting at which the Resolution is being considered is open to the public.
6. A copy of this Resolution shall be mailed and emailed to Jamie Mauldin, at Lloyd Gosselink Rochelle & Townsend. P.C.
RECOMMENDATION
Staff recommends approval of Resolution 2025–150, and associated action.