HomeMy Public PortalAboutResolution No. 212-04 08-24-2004
• RESOLUTION N0.212-04
DIRECTING TXU ELECTRIC DELIVERY COMPANY TO FILE
CERTAIN INFORMATION WITH THE CITY OF RICHLAND
HILLS; SETTING A PROCEDURAL SCHEDULE FOR THE
GATHERING AND REVIEW OF NECESSARY INFORMATION IN
CONNECTION THEREWITH; SETTING DATES FOR THE FILING
OF THE CITY'S ANALYSIS OF THE COMPANY'S FILING AND
THE COMPANY'S REBUTTAL TO SUCH ANALYSIS;
RATIFYING THE HIRING OF LEGAL COUNSEL AND
CONSULTANTS; RESERVING THE RIGHT TO REQUIRE THE
REIMBURSEMENT OF THE CITY OF RICHLAND HILLS'S RATE
CASE EXPENSES; SETTING A PUBLIC HEARING FOR THE
PURPOSES OF DETERMINING IF THE EXISTING RATES OF
TXU ELECTRIC DELIVERY COMPANY ARE UNREASONABLE
OR IN ANY WAY IN VIOLATION OF ANY PROVISION OF LAW
AND THE DETERMINATION BY THE CITY OF RICHLAND HILLS
OF JUST AND REASONABLE RATES TO BE CHARGED BY
TXU ELECTRIC DELIVERY COMPANY.
WHEREAS, the City of Richland Hills is a regulatory authority under the
Public Utility Regulatory ACT (PURR) and has original jurisdiction over the rates
of TXU Delivery (TXU) to determine if such rates are just and reasonable; and
• WHEREAS, Sections 33.021, 36.003 and 36.151 of PURA em owers a
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regulatory authority, or its own motion or on a complaint by any affected person,
to determine whether the existing rates of any public utility for any service are
unreasonable or in any way in violation of any provision of law, and upon such
determination, to determine the just and reasonable rates; and
WHEREAS, the City of Richland Hills has reason to believe that TXU is
overearning and its rates are excessive; and
WHEREAS, the City of Richland Hills is a member of the Steering
Committee of Cities Served by TXU; and
WHEREAS, the Steering Committee of Cities served by TXU has
unanimously recommended that cities pass a resolution that requires TXU to
show cause why its transmission and distribution rates should not be reduced;
and
WHEREAS, the City of Richland Hills, and the City Council of the City of
Richland Hills desires, on its own motion, to exercise its authority under Sections
3.021, 36.003 and 36.151 of PURA; and
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WHEREAS, a procedural schedule should be established for the filing of
certain information by TXU, procedures to be followed to obtain and review
information from TXU, the filing of an analysis of such information by the City, the
filing of rebuttal information from TXU, and a public hearing at which time the City
shall make a determination whether the existing rates of TXU are unreasonable
or are in any way in violation of any provision of law and if such rates should be
revised and just and reasonable rates determined for TXU.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF RICHLAND HILLS, TEXAS:
SECTION 1. This resolution constitutes notice of the City's intent to
proceed with an inquiry into the transmission and distribution rates charged by
TXU. On or before November 30, 2004, TXU shall file with the City of Richland
Hills, information that demonstrates good cause for showing TXU's transmission
and distribution rates should not be reduced. Specifically, TXU shall file with the
City of Richland Hills information for the test year beginning July 1, 2003 and
ending June 30, 2004, regarding TXU's cost of service elements, including, but
not limited to the elements detailed by the Public Utility Commission as
necessary for the filing of a Statement of Intent to Change Rates.
SECTION 2. City's designated representatives shall have the right to
obtain additional information from TXU through the filing of requests for
• information, which shall be responded to within fifteen (15) days from the receipt
of such request for information.
SECTION 3. City's designated representatives shall file their analysis of
TXU's filing and information on or before December 29, 2004.
SECTION 4. TXU shall file any rebuttal to the analysis of City's
representative on or before January 7, 2005. With its rebuttal, TXU may present
whatever additional information it desires to defend its current rates.
SECTION 5. A public he ring shall be conducted by the City Council for
the City of Richland Hills on ~ - zovs, during the regular council meeting
scheduled to commence at ~.m. At such hearing a representative of TXU
and a representative of the City of Richland Hills's consultants will each be
allowed to address the City Council and summarize previously filed reports for no
more than 15 minutes. Based upon such hearing, a determination of the
reasonableness of the existing rates of TXU shall be made by the City Council
and, if necessary, just and reasonable rates shall be determined to be thereafter
observed and enforced for all services of TXU within the City of Richland Hills,
Texas.
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SECTION 6. The City Council may, from time to time, amend this
• procedural schedule and enter additional orders as may be necessary in the
public interest and to enforce the provisions hereof.
SECTION 7. Subject to the right to terminate employment at any time, the
City of Richland Hills hereby ratifies the Steering Committee's selection of
Geoffrey Gay and Kristen Doyle with the law firm of Lloyd, Gosselink, Blevins,
Rochelle, Baldwin & Townsend as legal counsel to assist the City of Richland
Hills in its ratemaking and to prosecute any appeals to the Texas Public Utility
Commission or court.
SECTION 8. Fees and expenses of attorneys and consultants assisting
the City in the Steering Committee's review of the reasonableness of TXU's rate
will be processed through the Steering Committee but the City reserves the right
to seek reimbursement from TXU pursuant to the PURR Section 33.023.
SECTION 9. That it is hereby officially found and determined that the
meeting at which this ordinance was passed was open to the public as required
by law, and that public notice of the time, place, and purpose of said meeting was
given all as required by Section 551.041, Texas Government Code.
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ATTEST:
City Secretary Mayor, the City of Richland Hills
Approved: 24th Day of August, 2004. ; ~$`C~1,A~~
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