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ORDINANCE NO ~ I I
AN ORDINANCE SUSPENDING THE RATE INCREASE PRO-
POSED IN THE STATEMENT OF INTENT FILED BY TEXAS
ELECTRIC SERVICE COMPANY ON MAY 15 1980 FOR
AT LEAST 120 DAYS BEXOND THE INTENDED EFFECTIVE
DATE OF JUNE 19 1980 PROVIDING A SEVERABILITY
CLAUSE AND PROVIDING AN EFFECTIVE DATE
WHEREAS on May 15 1980 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 June 19 1980 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 $122 904 361 or 17 7% and
WHEREAS under the Texas Public Utility Regulatory Act
(Article 1446c V A C S ) the City Council of the City of Fort
Worth is charged with the duty of making a "reasonable deter-
mination of rate base expenses investment and rate of return
within the municipal boundaries'° of the City of Fort Worth and
WHEREAS it is a matter of public necessity that a
thorough investigation be conducted and a hearing held on such
requested major change in rates and
WHEREAS it is necessary that the proposed rate increase
intended to become effective on June l9 19$® 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 (October 17 1980)
NOW THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF
THE CITY OF FORT WORTH TEXAS
SECTION T
That the proposed rate increase of the Texas Electric
Service Company intended to become effective on June 19 199, 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 October 17 1980
SECTION II
Should any part, portion section or part of a section of
t}zis ordinance be declared invalid or inoperative or void for any
reason by a court of competent jurisdiction such decision opinion
off: judgment shall in no way affect the remaining portions parts
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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 o:f its passage and it
is so ordained
A1'I?ROVED AS TO FORM AND LEGALITY
City Attorney
ADOPTED _.__~~~7~f~~
EFFECTIVE
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FILE "'ilUGhiMiBAUGH
HERCHER~,,,~
BAILIFF,
SMITH
JONESI
PET,E,gSF.~I•
ccyor and ~oaen~~,l ~omm.un~cat~o~a,
DAJE REFERENCE SUBJECT Request of Texas Electric Ser- PAGE
NUMBER vlce Company for Authority to Increase
1 of 2
6/17/80 G-4593 Rates
On May 15 1980 Texas Electric Service Company (TESCO) filed its Request for
Authority to increase its rates effective thirty-five (35) days after the
filing, on June 19 1980 The new proposed rates will go into effect automa-
tically on that date unless as to the City of Fort Worth. they are suspended
by the City Council
The proposed increase in the adjusted total operating revenue is $123 million
(17 7% increase) By classes of rate customers the increases proposed are
A Residential - 20 1% increase
B Commercial-Industrial - 16 9% increase
C Municipal - street lighting - 32% increase.
D Water - pumping - 14 2% increase
Informal Report No 3495 of May 22 1980 listed alternative courses of action
available to the City Council one of which included suspending the proposed.
rates for a 120-day period (until October 17 1980) and taking some action
on the request to include one or more public hearings The Council previously
officially set Thursday June :12 1980 at 7 00 o'clock p m in the city
Council Chambers as the time for the first public hearing on the matter A
transcript is being prepared of this hearing
Consistent with the procedures followed in previous T.ESCO rate cases the
following steps have been taken
1) The City Attorney filed a Petition for Leave to Invervene
and requested that the City of Font Worth be classed as a
party to the proceedings before fhe P'UC pertaining to this
proposed rate increase
2) The PUC has docketed the TESCO rate matter as Cause No
PUC-3250, and a pre-hearing c-onference was held on Tuesday
June 3 1980 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 class if led
together with the rest of the Texas Municipal League (TML)
Cities into one of the six groups of intervenors The
hearing will begin on July 28 and is proposed t.o be divided
into revenue and rate structure segments
As has. been done in the three prior cases the City of Fort. Worth met. with
representatives of 19 other affected TML-TESCO cities on Monday June 2 1980
to discuss a joint and coordinated approach Attorney Don Butler who repre-
sented the TML Group as chief counsel in th.e.o_ther three cases stated that
the funds now on hand at -the TML offices in Austin i.n the. amount of approxi-
mately $35 000 will be sufficient to initiate the joint-participation inter-
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DATE
REFERENCE
SUBJECT 'Request Of Texas Electric Ser-
PAGE
NUMBER
vice Company for Authority to Increase
2
2
6/17/80 G-4593 Rates of
vention in. this case This. money lead been reserved for possible further
litigation in the tc;ro prior ~:~:ases PUC-1903 and 2606 and it appears now
that not much. additional expense will be required in further appeals
Therefore, the majority of t.h.e funds c.an be used in lieu of each city's
ma~Cing a.ny additional. cash contribution to the fund as was done in the
past cases These facts were verified in: a letter from Mr Butler
A. consolidated approach appears to have Veen quite effective in the past
as demonstrated-in th.e tabulation below
CO'MPANY'S TML CITIES' GRANTED TN FINAL
DOCKET REQUEST RECOMMENDATION PUC ORDER
NOS (MILLIONS) (MILLIONS) (MILLIONS)
PUC-527(1977) $ 79 05.3 $27 735 - 35% $44 120 - 63%
PUC-1903(1978) 109 .969 30 078 - 27% 37 935 - 34%
PUC-2606~1g79) 88 0 l4 558 - 17% 37 090 - 42%
Recommendations
It is recommended
l) That the TESCO increased rate structure proposed to go into
effect. on June 19 1980 be suspended for a period of 120
days pursuant to provisions of the PURR by adoption of the
attached ordinance and
2) That th.e 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 con-
firmed
ARP ms
Attachment
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SUBMITTED FOR T
CITY MANAGER'S
DISPOSITION BY COUNCIL:
PROCESSED BY
OFFICE BY ^ APPROVED
ORIGINATING
D ^ OTHER (DESCRIBE)
6 S
EPARTMENT HEAD• ~ ~ CITY SECRETARY
FOR ADDITIONAL INFORMATION
CONTACT Arthur R Petersen, e.x't 7623 DATE