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HomeMy WebLinkAboutOrdinance 9070J ~,,~...~ ~G" i'S~.; ° ~ y .L.i ~~ _ 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. ip {F~ ~ t ~M'di.. JTV r irk ~ J ~ -. 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: It -2- ++SASYER FILE 1 CITY M1M1rGER 1 ACCOUNTING 2 ./ V11~ ®d 'liW!/ IV~LIV ~®(L/W~~~IV ~®~~1[/lV~~~~I.W~~~~~ TRANSPOR7ATION(PUBLIC .WORKS•A~~ PUBLIC 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 ,_ 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 /~i0~ ~~~~~-v City Seoretaz ----=~-~ Y o:.4e city of ~ w,~ ~ ~ SUBMITTED fOR THE ~ _ /~ CITY TBANAGER'S V~L ,/ / / OFFICE BY ~ ~~~U~~ DISPOSITION BY COUNCIL. PROCESSED BY Q C ,~ ~ WET ^ APPROV:ED 'ORIGI'NATING Wade Adk1n5 ^ OTMER (DESCRIBE) DEPARTMENS'HEAD: :CITY :SECRETARY ' 'FOR A'.D'DITIONAI .I'NFORMATIO'N p ~ ({(1 d P n C/ Ord~~anCe Plo ~ i dl ~ , coNTACT~ Richard Au' hinbau h Ext. T~`O d. DATE i