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Home My WebLink AboutOrdinance 8589 ORDINANCE NO Q - ~V AN ORDINANCE REVISING THE FUEL ADJUSTMENT CLAUSE OF TEXAS ELECTRIC SERVICE COMPANY IN T:EIE CITY OF' FORT WORTH TEXAS PROVIDING CONDITIONS UNDER WHICI-T StJCIi FUEL ADJUSTMENT CLAUSE RATE SCI~IEDULE MAY BE CIiANGED MODIFIED AMENDED OR WITHDRAWN PROVIDING FOR AUTHORIZATION FOR THE CI'T'Y ATTORNEY TO ENTER INTO A SETTLEMENT AGRE~IENT IN PUBLIC UTILITY COMMISSION DOCKET NO 4224 PROVIDING FOR A SEVERABILITY CLAUSE AND PROVIDING FOR AN EFFECTIVE DATE WEiEREA$ on December 4 1981 the District, Court of Travis County Texas 200th Judicial District entered a final judgment in favor of various cities and cooperatives served by Texas Electric Service Company ( TESCO ) and advarse to TESCO a copy of which is attached hereto as Attachment I and a.ncorporated herein for all purposes and WHEREAS the District Court in said judgment ruled (.1) that TESCO ratepayers had peen overcharged approximately $30 rnillion as a result of a preferential sale of electricity by TESCO to Texas Power & Light and that a remedy was requi..red for TESCO ratepayers and (2) that the fuel adjustment clause used by TESCO and authorized 'ray the Public Utility Commission of Texas does not meet the requirements of law and, WIiEREAS tha Gity has agreed not tv seek any further rernedy with regard to the Martin Lake transaction found in violation of Section 41(c)(l) of Public Utility Regulatory Authority (PURA) but in all other respects the City finds that the judgment and all included findings and conclusions of the District Court shall be complied with in all regards and said judgment is hereby adopted and approved and WHEREAS TESCO did on December 9 1881 file a proposed fuel cost factor tariff for service within the City of Fort Worth to became effective January 13 1982 tyre operation of which was suspended for a geriod of 120 days from January 13 1982 and further suspended until July 1.2, 1982 ~by Council action on June 8 1982 and s s; WHEREAS the City Y-aving considered the attached proposed modified fuel adjustment clause and procedure for approval of payments to affiliates finds that the modified fuel adjustment clause and procedure for approval of payment of affiliates should be approved and construed in accordance with the attached final judgment of the District Court NOW THEREFORE, BE IT ORDAINED BY THE G TTY COUNCIL OF `~'HE C TTY OF FORT WORTH TEXAS SECTION 1 'T'hat the fuel adjustment clause date .schedule of TESCO is hereby amended in accordance with Attachment II attached hereto and incorporated herea.n for. all purposes Such fuel ad just- ment clause is the one under which TESCO shall ~5e authorized to collect charges from its customers for the sale of electric power and energy within the corporate limits of the City until sucYi time as said fuel adjustment clause rate schedule may be changed modifi- ed amended or withdrawn, with the approval of the City Council SECTION 2 Such fuel adjustment clause rate schedule, as same may be modified or amended, sha11 be effective £roirri and after final passage of this ordinance and shall apply to all power and energy used by each customer after the final passage of •this ordinance SECTION 3 That the action of the City Council of the City of Fort Worth enacting this ordinance constitutes, on the date of its final passage, a final determination of the fue]_ adjustment clause :rate of TESCO with the City of Fort Worth in accordance with Section ~3(e) of the Public Utility Regulatory Act SECTION 4 That the final judgment of the District Court of Travis County Texas 2QOt.h Judicial District attached hereto as Attachment I is hereby approved and .adopted except to the extent that the City has agreed not to seek any further reaitedy with regard ~~ to the Martin Lake transaction found in violation of Section 41(c)(1) of the PURR by said judgment The attached modified fuel adjustment clause and procedure for approval. of payments to affili- ates shall be construed in accordance with said final judgment SECTION 5 The City Council hereby authorizes the City s attorneys to enter into an agreement to settle Docket No 4224 before the Public Utility Commission of Texas in substantial conformance with the proposed order and proposed procedure for approval of ,payments to affiliates provided by counsel in April 1982 The City Council also authorizes the City s attorneys to settle the remands to the Commission of Cause Nos 292,241 292 362 and 292,365 ordered by the District Court of Travis County Texas, 200th Judicial District The City Council understands that the agreed order provides that the City will. not seek any further remedy with regard to the Martin Lake transaction found in violation of the law by the judgment of the District Court of. Travis County Texas SECTION 6 Nothing in tli~.s ordinance shall be construed now or hereafter as limiting or modifying in any manner the right or power of the City under the law to regulate the rates and charges of Texas Electric Service Company SECTION 7 Should any part portion section ar 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 ,t` a ax SECTION 8 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 ALGID LEGALITY City Attorney Date ~p-~~-g ~- ADOPTED ~°o~, 1~~~ ~-~ EFFECTIVE ~ ~~'`~~" City o~' Fort worth, ~e~as J1~ayor and Coun~al Coanrn.un~cataon DATE REFERENCE SUBJECT ApprOVal Of Final Settlement Of PAGE NUMBER Litigation in Cause No 292241 in Travis 1 6/22/82 **G- 5345 Count , 200th Judicial District Court >or This case involves the methods of calculation and collection of the fuel clause charges of Texas Electric Service Company (hereinafter TESCO) The proposed formula for the collection of fuel charges as contained in this court order has been designed to overcome many of the past complaints from Texas Municipal League/TESCO cities regarding the administration and operation of the fuel clause and other related questions involving the propriety of TESCO's affili- ated-company fuel transactions and the necessity of regulatory approval prior to the collection of the fuel charges These issues originated in the 1978 TESCo rate case, docketed as PUC-1903, and have been in appellate court litigation, which culminated in the generally favor- able (to Fort Worth and TML cities) final judgment of the Travis County 200th Judicial District Court on December 4, 1981 Continuous negotiations between counsel for all of the affected parties have been conducted ever since the December 4, 1981, court judgment, and an acceptable for- mula for the fuel charge calculations has been evolved, and all of the parties are in agreement The City Council has been advised of these changes involved in the settlement by the counsel for the TML cities and the City Attorney in their last meeting on June 15, 1982. As of this date, 8 of the 16 cities which were parties to the appeal have approved ordinances and designated their legal representatives or city attorneys to sign the Agreement of Settlement The Department of Law has prepared the attached ordinance which will accomplish the participation of the City of Fort Worth in this settlement Recommendation It is recommended that the City Council approve the attached ordinance revising the Fuel Adjustment Clause and authorizing the City Attorney to sign the settle- ment agreement APPROVED BY CITY COUNCIL JUN 22 1982 ~~~ ecxetary of the O~ ~o7Ck Wo;th, Teen ADOPTED ORDINANCE NO ~~~' SUBMITTED FOR TH CITY MANAGER'S DISPOSITION BY COUNCIL: PROCESSED BY OFFICE BY: ^ APPROVED ORIGINATING Wade Adkins O OTHER (DESCRIBE) DEPARTMENT HERO: CITY SECRETARY FOR ADDITIONAL INFORMATION CONTACT R Aughinbaugh Ext 7698 DATE