HomeMy WebLinkAboutOrdinance 7911 ORDINANCE NO.
AN ORDINANCE SUSPENDING THE RATE INCREASE
PROPOSED IN THE STATEMENT OF INTENT FILED
'BY TEXAS ELECTRIC SERVICE COMPANY ON MAY
17, 1979 , FOR AT LEAST 120 DAYS BEYOND
THE INTENDED EFFECTIVE DATE OF JUNE 21,
1979; PROVIDING A SEVERABILITY CLAUSE;
AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, on May 17 , 1979 , the Texas Electric Service
Company filed with the City Secretary of the City of Fort
Worth a Statment of Intent to Change Rates to make a major
change in electric rates proposed to go into effect on
June 21, 1979 , which major change in electric rates is
estimated by the Texas Electric Service Company to increase
its adjusted total operating revenue in the amount of
$87 ,997,136 or 16 . 1%; and
WHEREAS, under the Texas Public Utility Regulatory Act,
(Article 1446c, V.T.C.S. ) , the City Council of the City of
Fort Worth is charged with the duty of making a "reasonable
determination of rate base, expenses, investment and rate
of return within the municipal boundaries" , of the City
of Fort Worth; and
WHEREAS, it is a matter of public necessity that a
thorough investigation be conducted and a hearing held on
such requested major change in rates; and
WHEREAS, it is necessary that the proposed rate in-
crease intended to become effective on June 21, 1979 , be
suspended as authorized by Article 1446c, the Public
Utility Regulatory Act, for at least 120 days beyond the
date on which the schedule of proposed rates would go
into effect (October 19 , 1979) ;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL
OF THE CITY OF FORT WORTH, TEXAS:
SECTION I .
That the proposed rate increase of the Texas Electric
Service Company intended to become effective on June 21,
1979 , be and the same is hereby suspended as authorized by
Article 1446 (_c) , the Public Utility Regulatory Act for at
least 120 days beyond such date on which the schedule of
proposed rates would go into effect and at least until
October 19 , 1979 .
SECTION II.
Should any part, portion, section or part of a section
of this ordinance be declared invalid or inoperative or void
for any reason by a court of competent jurisdiction, such
decision, opinion or judgment shall in no way affect the
remaining portions, parts, sections or parts of sections
of this ordinance, which provisions shall be, remain and
continue to be in full force and effect.
SECTION III .
That this ordinance shall take effect and be in full
force and effect from and after the date of its passage,
and it is so ordained.
APPROVED AS TO FORM AND LEGALITY:
c
City Attor ey -
ADOPTED: �l
EFFECTIVE: g� G
-2-
FILA fitOY �o Fort WorthS, Texas�
l,ERCHERT Mayor Council Communication o e
BAILIFF
SMITH In Tlie :�c1'Cter v€ Texas F] tric
DATE REFERENCE SUBJECT: PAGE.
NUMBER Service C 'S 11
PETERSEN . y Application cat io.n to I,ncre a
5/29/79 G-4187 Its Revenues and Rate Structures
AUGh11NEi UGH
On Tgursday, May 17, 1919, Texas Electric Sex-vice Company filed its request +fir
authority to iacrease loexB.l rates propose d. to be effective lune 21, 1979 with
all of the cities served in i.ts tevirkrar-y, and with the RUblic Utilities
Commission in Austin for all fts "rural- area ct*sFr zter;!°.. The overaL21 scope of
the rate increase seeks to kncrease adygsted g,aoss revenues from $.545.14 million
to $633.005 million (an $88 million increase) which amounts to an increase: of
16.6 percent. However, rate increases hyt classes and customer catego-rives- vary,
e.g. Residential Service would increase approximately 20%; General Service
(commercial and industrial) by generally 15%; Higb Voltage Transmission Service
by 16%; Water Pumping by 34%; Street. Lighting Service by 28%; School and
Municipal Service by 20%. Consistent with the procedures followed in the last
TESCO rate cases, the City Attorney, on May 18, 1979, filed a Petition for Leave
to Intervene and requested the City be classed as a party in and to the
proceeding before the PUC.
The Public Utilities Commission of Texas, upon receipt of the company' s applica-
tion, docketed the matter as Cause No. PUC-2606, and set Monday, June 4, 1979,
at 9:00 a.m. , for the first pre-hearing conference, at which it will determine
and classify the parties to the proceedings, establish the hearing date
schedules and the timetahiae for submission of evidence from all parties. Members
of the City' s Legal-Utilities Office staff pian to attend that bearigg..
In the case just concluded before the PUC, the City joined with other TML/TESCO
customer cities in the joint effort of resisting the $110 million rate request
submitted by TESCO approximately 1 year ago. The City of Fort Worth' s contri-
bution in that effort was substantial, both by services and labor, (the
Utilities Supervisor' s Office and Ms. Compton, Assistant City Attorney) , plus a
pro-rata contribution of 7,983 (2¢ per capita based on the 1970 census
figures) . That joint and several but coordinated approach by the affected cities
seems to have merit from an economic standpoint. Due to the active participation
of the City of Fort Worth staff and the TML cities group, working closely with
that of the PUC Engineering, Accounting, and Legal staffs, the $110 million
request in that case was reduced to $38 million in the Final Order of the Public
Utility Commission, which is a reduction of 65.46% from the Company' s request.
In addition, as a result of the continued hearings and investigations into the
Texas Utilities Company afflitates and subsidiaries transactions, a further
refund (to TESCO customers) was ordered in the Final Order PUC-1903 on April 20,
1979, in the amount of $1.67 million.. This amounts to .06¢ per kwhr,,and will be
refunded in the May and June 1979 billings.
Under the terms of the Public Utility Regulatory Act (PURA) of 1975, cities have
original jurisdiction over electric and gas utility rate .cases• and must hold
public hearings and make other inquiries to justify and determine their position
and resultant action in rate matters.
DATE REFERENCE SUBJECT: In The Matter of Texas Electric PAGE
NUMBER 2
Service Company' s Application to Increa e 2 of
5/29/79 G-4187 Its Revenues and Rate Structures
Recommendation
That the City Council, in its consideration of the TESCO rate request take the
following actions:
1. Set public hearings for the next two City Council sessions, June 5 and
12, 1979, and have the City Secretary publish notice thereof in the
official newspaper.
2. That Fort Worth' s participation in cooperation with other TML cities
in the rate setting procedure before the PUC to protect the rate
interests of the citizens of the City of Fort Worth be approved and
confirmed and that an expenditure of not to exceed two cents per
capita, based on the 1970 Census ($7,869) for this purpose be
authorized.
3. That the increased rate structure proposed by the Company to go into
effect on June 21, 1979, be suspended for 120 days beyond that day, by
adoption of the attached suspension ordinance.
RLH.jc
SUBMITTED FOR THE
CITY MANAGER'S DISPOSITIO"Y COUNCIL: PROCESSED BY
OFFICE BY: APPROVED
ORIGINATING r OTHER (DESCRIBE)
DEPARTMENT HEAD: Arthur PLwr��"�� �
etersen A®QPTE U9' UL, �� -7 ��CI SECRETARY
FOR ADDITIONAL INFORMATION o•
CONTACT: Richard Aughinbaugh, Ext. 6 98 DATE5)-✓f �`�