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Ordinance 8505
_- n ORDINANCE NO. ~~D~` AN ORDINANCE SUSPENDING THE REVISION OF THE FUEL COST FACTOR TARIFF SCHEDULE PROPOSED IN THE STATEMENT OF INTENT FILED BY TEXAS ELECTRIC SERVICE COMPANY ON r DECEMBER 9, 1981 FOR AT LEAST 120 DAYS BEYOND THE " INTENDED EFFECTIVE DATE OF JANUARY 13, 1982; PROVIDING A SEVERABILIT Y CLAUSE; AND PROVTDTNG AN EFFECTIVE DATE WHEREAS, on December 9, 1981, the Texas Electric Ser vice Company filed with the City Secretary of the City of Fort Worth a Statement of Intent to Change and Revise its method of calcula- tion and application in its rate schedules, of the "Fuel Cost Factor Tariff Schedules", proposed to go into effect January 13, 1982; and WHEREAS, it is a matter of public necessity that a thorough investigation be conducted; and WHEREAS, it is necessary that the proposed revision of Fuel Cost Factor Tariffs calculation methods intended to become effec- tive on January 13, 1982, be suspended as authorized by Article 1446c, the Public Utility Regulatory Act, for at least 120 days beyond the date of which the schedule of proposed rates would g o into effect; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS: SECTION I. That the proposed Fuel Cost Tariff calculation methods of the Texas Electric Service Company intended to become effective on January 13, 1982, 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 May 13, 1982. r ~. .r ., ^ '3 -~*tt SECTION II. e ~~. 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, opin- ion 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. r 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 LEGRLIT Y: Acting City Attorney ADOPTED EFFECTIVE: ._,-~ r. k fA}l.~-S."~ -~~~E y ~ t• ~ ~!kJ .i!'.1.'~" '~ CITY MANAGER 1 ~CCQ~INTINO.~ ~~~®~ •]'RANSPORTATICN PUe'LIO Wb~~"s=~ `•, ~. • City of Dort Worth, texas and Council. Co~aaanunication DATE REFERENCE SUBJECT Texas Electric Service Company PAGE „g NUMB R Pro o_sal to Revise Methods of ~'`~ 1 of~_ 1 12 82 ** Calculation of Fuel Charges On December 9,1981, Texas Electric Service Company (TESCO) filed a proposed revision in the Fuel Cost Factor Tariff Schedule, with the City of Fort Worth and all other cities it serves, and with the Public Utilities Commission (PUC). The proposed f©rmula for the collection of fuel costs is designed to overcome --some of the past complaints from Texas Municipal League/TESCO cities regarding the administration and operation of the fuel clause and other related questions involving prior' regulatory approval, and the propriety of TESCOIs affiliated- company fuel transactions. These matters arose from the lengthy litigation originating in the 1978 TESCO rate case.., PUC~T903, in which the City of Fort Worth was an active participant, together with°~he other TML-TESGO cities. The issues described above have been thoroughly argued in the courts since 1978, and were finally adjudicated generall in"favor of the TML-Cities, by a Court Order on December 4, 1981, in Cause __.29224,1 in the~„53rd District Court of Travis County. (Copies of this Order were -a~nsmitted _.te, the Council on December 14, 1981) . e s a o °he Department of Law - Publ~.c Utilities met on December 10, 1981, ,.,...with other affected TML-Cities Committee members in Austin to discuss the impact ~-of t~e~-Cour-t'-s~Order and the group was unanimous in agreeing that the proposed -~--change im-TJSGO Fuel Cost factors be suspended for the 120-day period, as provide "for in the"Public Utilities Regulatory Act (PURR), before the effective date of implementation on January 13, 1982, so that these complex issues can be thoroughly studied by both the cities and the PUC. This matter has been docketed by the PUC as Case No. PUC--4224, and the first pre-hearing conference is scheduled for January 12, 1982. The City Attorney has filed a Petition with the PUC for Leave to Intervene in this case, and the staff proposes to attend and participate at the January Pre-Hearing Conference. An ordinance has been prepared to provide for the suspension of the implementati of the proposed Fuel Cost Tariff, At this time, it is anticipated that there will be no additional City of Fort Worth funding necessary to pursue this matt ex at the PUC, except for minor travel expenses. A number of the other cities (l6) have already taken action to suspend the proposal. Recommendation It is recommended that the proposed change in TESCOIs Fuel Cost calculation methods be suspended by the City Council for a period of 120 days, pursuant to provisions Section 43d of PURR, by adoption of the attached ordinance APPROVED BY ~' plg CITY C©UNCII Attachment SUBMITTED FOR T 't CITY MANAGER'S DISPOSITION BY COUNCIL: tt ~~`` ~ J~IV ~:ra ~'C~'CESSED BY 1~~~ OFFICE BY: a ^ APPROVED ORIGINATING ^ OTHER (DESCRI DEPARTMENT IiEAb: William W. WOOd ~S Y FOR ADDITIONAL INFORMATION CONTACT Richard...Au hinbau h, Ext. 6798 ~ ~ 1 DATE 1