HomeMy Public PortalAboutOrdinance No. 469-82 07-19-1982 ORDINANCE NO. 469
AN ORDINANCE REVISING THE FUEL ADJUSTMENT CLAUSE OF TEXAS ELECTRIC
SERVICE COMPANY IN THE CITY OF RICHLAND HILLS, TEXAS, PROVIDING FOR
AN EFFECTIVE DATE FOR SUCH FUEL ADJUSTMENT CLAUSE RATE SCHEDULE, AND
PROVIDING CONDITIONS UNDER WHICH SUCH FUEL ADJUSTMENT CLAUSE RATE
SCHEDULE MAY BE CHANGED, MODIFIED, AMENDED OR WITHDRAWN.
WHEREAS, on December 4th, 1981, the District Court of Travis
County, Texas, 200th Judicial District entered a final judgment in
favor of various cities and cooperatives served by Texas Electric
Service Company ("TESCO") and adverse to TESCO, a copy of which is
attached hereto as Exhibit A and incorporated herein for all purposes;
and
WHEREAS, the District Court in said judgment ruled (1) that
TESCO ratepayers had been overcharged approximately $30 million as a
result of a preferential sale of electricity by TESCO to TP & L and
that a remedy was required for TESCO ratepayers and (2) that the fuel
adjustment clause used by TESCO and authorized by the Public Utility
Commission of Texas does not meet the requirements of law; and,
WHEREAS, the City agrees not to seek any further remedy with
regard to the Martin Lake transaction found in violation of Section
41 (c) (1) of PURA, but in all other respects, the City finds that
the judgment and all included findings and conclusions of the District
Court shall be complied with in all regards, and said judgment is
hereby adopted and approved; and
WHEREAS, TESCO did, on December 9, 1981, file a proposed fuel
cost factor tariff for service within the City of Richland Hills
("City") to become effective January 13, 1982, the operation of which
was denied; and
WHEREAS, the City, having considered the attached proposed mod-
ified fuel adjustment clause and procedure for approval of payments to
affiliates finds that the modified fuel adjustment clause and proce-
dure for approval of payment of affiliates should be approved and
construed in accordance with the attached final judgment of the District
Court;
NOW, THEREFORE, be it ordained by the City Council of the City of
Richland Hills, Texas:
SECTION l: That the fuel adjustment clause rate schedule of
Texas Electric Service Company is hereby amended in accordance with
Exhibit "B", attached hereto and incorporated herein for all purposes.
Such fuel adjustment clause is the one under which TESCO shall be
authorized to collect charges from its customers for the sale of elec-
tric power .and energy within the corporate limits of the City until
such time as said fuel adjustment clause rate schedule may be changed,
modified, amended, or withdrawn, with the approval of the City Council.
SECTION 2: Such fuel adjustment clause rate schedule, as
same may be modified or amended, shall be effective .from and after
final passage of this ordinance and shall apply to all power and
energy used by each customer after the final passage of this ordinance.
SECTION 3: That the action of the City Council of the City
of Richland Hills enacting this ordinance constitutes, on the date
of its final passage, a final determination of the fuel adjustment
clause rate of Texas Electric Service Company within the City of
Richland Hills in accordance with Section 43 (e) of the Public Utility
Regulatory Act.
SECTION 4: That the final judgment of the District Court of
Travis County, Texas, 200th Judicial District, attached hereto as
Exhibit "A" is hereby approved and adopted except to the extent that
the City has agreed not to seek any further remedy with regard to the
Martin Lake transaction found in violation of Section 41 (c) (1) of the
Public Utility Regulatory Act by said judgment. The attached modified
fuel adjustment clause and procedure for approval of payments to
affiliates shall be construed in accordance with said final judgment.
SECTION 5: Nothing in this ordinance shall be construed now
or hereafter as limiting or modifying, in any manner, the right or
power of the City under the law to regulate the rates and charges of
Texas Electric Service Company.
SECTION 6: The rule providing for the reading of an ordinance
on three separate days is hereby suspended and this ordinance shall
become effective as provided by the Charter of the City of Richland
Hills.
PASSED AND APPROVED at the regular meetin o,~ the City Council
th City of Richland Hills, Texas, this ~
7~ day of
1982.
avid L. Ragan ~
Mayor
•
Pauline Kempe
City Secretary