HomeMy WebLinkAboutResolution 701 AaluU LB=OTL
7ION FILE NO.
CALLING FOR ADOPTION OF CONSIDERATIONS
FOR DETERMINING THE FINANCIAL
NECESSITY OF INCLUDING
CONSTRUCTION WORK IN PROGRESS
IN UTILITY RATE BASE
WHEREAS, the Fort Worth City Council as the governing body
of the City of Fort Worth has exclusive original jurisdiction over
all electric, gas , water, and sewer utility rates , operations , and
services provided by an electric, gas , water and sewer utility with-
in the City of Fort Worth City limits pursuant to the Public
Utility Regulatory Act (PURA) , Tex. Rev. Civ. Stat. Ann. Art.
1445C, Sections 17, 19 and 20 (Supp. 1978) ; and
WHEREAS , Spction 41(a) of Said Act provides- that Construction
Work In Progress , at original cost as recorded on the books of the
company, shall be included in the rate base of the public utility
where necessary to the financial integrity of, the utility; and
WHEREAS, the inclusion of Construction Work In Progress in,,
utility rate base has a profound effect upon the rates, operations ,
and services of said utilities;
NOW, THEREFORE, BE IT RESOLVED that the City Council of
Fort Worth, Texas, finds that the burden of proof as to necessity
for inclusion of the Construction Work In Progress component shall
rest with the utility and shall be based upon the following findings
of fact:
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(A) The utility has an urgent and immediate need for
such capital;
(B) The utility's ability to raise capital in the
financial markets is impaired by failure to meet
their required interest and dividend coverage
ratios;
(C) The utility has successfully implemented effective
cost control programs which have already shown
significant realized cost savings ;
(D) The utility has fully explored all reasonable alterna-
tive courses of action.
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