HomeMy WebLinkAboutOrdinance 9070J
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ORDINANCE NO. 9070
AN ORDINANCE SUSPENDING THE RATE INCREASE PROPOSED IN THE
STATEMENT OF INTENT FILED BY TEXAS UTILITIES ELECTRIC
COMPANIES ON MARCH 9, 1984 FOR AT LEAST 90 DAYS BEYOND THE
INTENDED EFFECTIVE DATE OF APRIL 13, 1984; PROVIDING A
SEVERABILITY CLAUSE, AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, on March 9, 1984, the Texas Utilities Electric Compa-
vies filed with the City Secretary of the City of Fort Worth a
Statement of Intent to Change Rates to make a major change in elec-
tric rates, proposed to go into effect on April 13, 1984, which
change in electric rates is estimated by the Texas Utilities
Electric Companies to increase its adjusted total operating revenue
in the amount of $304 million, or 7.98: and
WHEREAS, under the Texas Public Utility Regulatory Act,
(Article 1446c, V.A.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 increase
intended to become effective on April 1.3, 1984, be suspended as
authorized by Article 1446c, the Public Utility Regulatory Act, for
at least 90 days beyond the date on which the schedule of proposed
rates would go into effect or until July 12, 1984.
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 April 13, 1984, be and the
same is hereby suspended as authorized by Article 1446(c), the
Public Utility Regulatory Act for at least 90 days beyond such date
on which the schedule of proposed rates would go into effect and at
least until July 12, 1984.
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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 or-
dained.
PPROVED AS TO FORM AND LEGALITY:
City Attorney
Date : ~`~ ~ °` ° ~ ~ ~' ~ ~ ~ ~
ADOPTED: Q~f / 9~'~L
EFFECTIVE:
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LAW 1
T LIT~4~Et REFERENCE SUBJECT Request of Texas Utllltles PAGE
4/10/84 NUMBER Electric Com anies for Authorit to
**G- 5958 'Increase Rates y i or.-=-?__._
Background ,
On March 9, 1984, Texas Utilities Electric Companies filed its .Request for
Authority to increase its rates, effective thirty-five days after the filing,
on April 13, 1984 The new proposed rates can go into effect automatically on
that d"ate in the City of Fort Worth, unless suspended by the City Council by
April 13, 1984 The Company states that it does not propose to place the rates
into effect until authorized to do so by the Public Utility Commission (PUC) The
proposed increase in the adjusted total operating revenue is $304 million (7.98%
increase). By classes of rate customers, the increases proposed are
pity ®~¢' 1F'~r~ ®~°~~a,, ~"e~~s
A Residential - 8 7% increase
B Commercial - Industrial 7% and 5% increase
C Municipal - Street Lighting - 15 9%
D. Water - Pumping 11 3% increase
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Informal Report No 6927 listed alternative courses of action available to the
City Council, including suspending the proposed rates for a ninety day period
(until Ju1v 7, 1984)
Consistent with the procedures followed in previous TESCO rate cases, the
following steps have been taken
1) The City Attorney has filed the Petition for "Leave to Intervene" and
requested that the City of Fort Worth be classed as a party to the
proceedings before the. PUC, and,
2) The PUC has docketed the TESCO rate matter as Cause No PUC-5640, and a
pre-hearing conference was held on Monday, March 26, 1984 The Administrative
Law Judge in this meeting granted three of the intervenors motions to dismiss
the case :and. gave :the Company until April 6,1984, to respond to the dismissal
requests The PUC~~will decide on April 13, 1984, whether to proceed with
the case or to dismiss it.
The first meeting of the TML-Cities Committee was held in Austin on March 15,
1984, to discuss joint intervention efforts It was agreed that a small
assessment from all the cities probably will be necessary to defray initial
costs such as court reporters` fees A request for reimbursement of these
costs by the utilities will be made later. It is estimated that one cent
per capita, based on a 19$0 census, will be adequate to get the fund started
DATE NUMBER CE SUBJECT Request of Texas Utilities PAGE
4/10/84 **G-5958 Electric Companies for Authority to 2 2
Increase Rates °t
The request for Counci l approval of this funding will be made soon, if the PUC
on April 13 decides to go forward and hear the evidence in the case..
Recommendation
It is recommended that the Texas Utilities Electric Companies increased rate
structure proposed to go into effect on April 13, 1984, be suspended for a period
of ninety days, pursuant to provisions of the PURA, by adoption of the attached
ordinance.
RAM:3c
Attachment
APPROVED BY
CITY COUNCIL
APR ~0 1984
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DISPOSITION BY COUNCIL.
PROCESSED BY
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WET ^ APPROV:ED
'ORIGI'NATING Wade Adk1n5 ^ OTMER (DESCRIBE)
DEPARTMENS'HEAD: :CITY :SECRETARY '
'FOR A'.D'DITIONAI .I'NFORMATIO'N p
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