HomeMy WebLinkAboutOrdinance 8864v ~ ~ '~ ~ ~
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O~2DINANCE NO. D LP~
AN ORDINAD?CE SUSPENDING THE RATE ID:CREASE PRO-
POSED IN THE STATEMED?T OF INTENT FILED BY TEXAS
ELECTRIC SERVICE COMPANY ON JUNE 9, 1983, FOR
AT LEAST 120 DAYS BEYOND THE INTENDED EFFECTIVE
DATE OF JULY 14, 1983; PROVIDING A SEVERABILITY
CLAUSE; AND PROVIDING AD1 EFFECTIVE DATE.
WHEREAS, on June 9, 1983, the Texas Electric Service
Company filed with the City Secretary of the City of Fort Worth
a Statement of Intent to Change Rates to make a major change in
electric rates proposed to go into effect on July 14, 1983, 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 $195,082,868 or 16.10; 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 determina-
tion 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 July 14, 1983, 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 (November 14, 1983);
NOW, THEREFORE, BE IT ORDAINED BY TIIE 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 July 14, 1983,
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 November 14, 1983.
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,
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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 A5 TO FORM AND LEGALITY:
City Attorney
ADOPTED : _~L~I~C.,. _ 1~_ ~_____~~..~~,l
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EFFECTIVE : ___
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Aq@,til'rN FII.Eag 1
CITY MANAGER 7 ~ /1I ~,° n®~ ~~ ~.// ~ ^~,°^ ^~ J/ // '®U U IV~LL/U/~~~'VW1L~®~
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Q'RANSPORTq~I~~~BL1C yypRK3.g' REFERENCE SUBJECT Request of Texas Electric PacE
NUMBER Service Com an for Authorit to 2
zaw-3 7/5/83 G-5680 P y y
t_ _ __ _ . _ _ ~n ._ _ I of _~
Background
•~s..
On June 9,'1983, Texas Electric Service Company (TESCO) filed its Request for
Authority zo increase its rates to become effective thirty-five days after the
filing, on•July 14, 1983. The new proposed rates will go into effect automati-
_._, ca11y on tfiat date in the City of Fort Worth, unless they are suspended by the
-------.- City Council by July 14, 1983.
i.M__;A_..__` The proposed increase in the adjusted total operating revenue is $195 million•
_,.,._.__~.. _' (16.1% increase) . By classes of rate customers, the increases proposed~eL"' ~
--'~•~---~----- -----_.._A.. Residential - 38.3% increase
-~~-r _ B-.•~--Goaunercial - Industrial - 40 8% increase
c;"~°~ _ ~~_~~~ `~'~ C:--Municipal - street lighting - 51 8% increase
-- .-_. ~_.__ _.. ~D~--Warmer - pumping - 68.6% increase
`~`-_- ---~n€-c-~~a~,,,,Report No. 6854 of June 16, 1983, listed alternative courses of action
'`~`v'ai-ab3-e to the City Council, including suspending the proposed rates for a
"~ ZI=~~eriod (until November 14, 1983), and other action on the request.
._
~""®"~--~~e-firs, public hearing in this rate matter was held by the Public Utility
'""""Comm-ssican and City staff in the Council Chambers on Wednesday, June 22, 1983,
_ rom p m. until 8.00 p.m. Twenty witnesses presented oral testimony, and
' .~ atten ~ n e included up to about 100 persons City staff has prepared a 98-page
transcript of the proceedings
Consistent with the procedures followed in previous TESCO rate cases, the
following steps have been taken:
1. The City Attorney filed a Petition for Leave to Intervene and
-~~'• ~ requested that the City of Fort Worth be classed as a party
to the proceedings before the PUC pertaining to this proposed
rate increase
2. The PUC has docketed the TESCO rate matter as Cause No PUC 5200,
and a pre-hearing conference was held on Monday, June 27., 1983.
Representatives of the Department of Law's Utilities Office
attended At this hearing the Commission established the
timetable for submission of evidence and hearing schedules.
The City of Fort Worth was classified, together with the rest
of the Texas Municipal League (TML) Cities, into one of the
groups of intervenors. The hearing will begin on Monday,
September 5, 1983 (Labor Day) and intervenor testimony due
by August 22, 1983.
As has been done in the four prior cases, the City of Fort Worth met with repre-
sentatives of nineteen other affected TML-TESCO cities on June 10 and 22, 1983,
to discuss a joint and coordinated approach. Attorney Don Butler, who has
represented the TML group as chief counsel in the other four cases, stated that
the funds now on hand at the TML offices in Austin will be sufficient to initiate
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DATE .REFERENCE SUBJECT Request of Texas Electric PAGE
~,~~o~nri,N $ NUMBER Service Company for Authority to 2 2
7/5/83 G-5680 _~-_ar_--
tPRnNSPgflSA au uc `"nrrKS~>3 Increase Rates
LAw.i the point-participation intervention in this case This money has been reserved
for possible futher litigation in the two prior cases, PUC-1903 and 2606, now
resolved, and it appears that not much additional expense will be required and
the funds can be used in lieu of each city's making any additional cash contri-
button to the fund.
__A.~-consoiidared approach appears to have been quite effective in past cases,
. _. -. --as--d-emonst~rated in the tabulation below:
--~..-m" ~" "J r~._~_.~__..,~, Company's TML Cities' Granted in Final
' _.__ _..D.o.cket-~---~--• Request Recommendation: PUC Order:
,._r~.~
~_.- -__-_-- --Nos.--~-~` - Millions) (Millions) (Millions)
--------'-PUC= 3"27`~(1~7) $ 79.053 $27.735 - 35% $44.120 - 63%
^_--"" -" -`PUC.-190.3:_(1.9-78) 109.969 30.078 - 27% 37.935 - 34%
" `~~.._~..UC.2696--979) 88.0 14.558 - 17% 37.090 - 42%
,Y _ ---P~TG-3~~4-(-Y98'0) 122.9 42.600 - 35% 67.200 - 55%
"~ _ _rt _ap-.pea.rs...zhat the PUC in its final order in the last case was perhaps more
.._
"~'"~-+~..~.genexous--t-~art in previous cases, and the rate relief granted in 1980 was suffi-
,_.,.; _ .• -r.~ien-t-Ito--pit TESCO to operate for three years before seeking relief in the
83"request.
T,t~.e_.s~t.aff-.continues its analysis of the request and will make its final recom-
~nendati-an--in-the near future.
It is recommended that:
1) The TESCO increased rate structure proposed to go into effect on July
14, 1983, be suspended for a period of 120 days, pursuant to provisions
of the PURA, by adoption of the attached ordinance; and,
2) The City of Fort Worth's participation and cooperation with other TML
cities in the rate-setting procedure before the PUC for the purpose
of protecting the rate interests of the citizens of the City of Fort
Worth be approved and confirmed.
WA:jc
Attachment
APPROVED BY y~
CITY COUNCIL"
J~1~ I ~ 1983
CYtp of Foie Wwltby Toxae
SUBMITTED FOR
CITY MANAGER'S
OFFICE BY
ORIGINATING Wade Adkins
DEPARTMENT HEAD:
FOR ADDITIONAL INFORMATION
CONTACT Richard Au~hinb~ugh Ext. 6798
DISPOSITION BY COUNCIL:
[] APP OVED
OT®R (DESCF
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PROCESSED BY
j V V ~ ~' ~ CITY SECRETARY
GATE