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HomeMy WebLinkAboutIR 7502 INFORMAL REPORT TO C. . 1 COUNCIL MEMBERS No. 7502 November 20, 1990 To the Mayor and Members of the City Council »rExa`' TU ELECTRIC COMPANY RATE CASE EXPENSES Subject: 'e» On January 1 of this year TU Electric filed with the City of Fort Worth, other cities in its service area and the Public Utility Commission for an increase in rates . The requested rate increase was driven by the completion of the first of two generating units at the Comanche Peak Nuclear Power Project . The "Steering Committee of TU Electric Service Area Cities" was formed to coordinate the participation of the cities in the rate proceeding. Approximately 70 cities elected to participate. A one time assessment was levied on each city on the basis of population to generate a fund to be used as seed money for rate case expenses . On January 30 of this year (M&C G-8449) the City Council took action to: a. Authorize the City to become a member of and participate in the Steering Committee of TU Electric Service Area Cities; b. Authorize the Steering Committee to retain legal counsel and rate consultants , and intervene on the City's behalf in TU Electric rate case dockets; C. Suspend the proposed TU Electric rates ; and d. Authorize the City Manager to pay to the Steering Committee the sum of $45,000 , as Fort Worth's share of the initial rate case expenses . Based on an expectation that the rate case would be completed by January 1991 , the Steering Committee projected rate case expenses to be approximately $2 . 6 million. Under Section 24 of the Public Utility Regulatory Act , reasonable rate case expenses are reimbursable to the cities by TU Electric. The Steering Committee collected $328 ,000 from the participating cities , an amount insufficient to cover all of the rate case expenses . Accordingly, the Steering Committee and TU Electric Company reached a voluntary agreement whereby TUEC would advance to the cities the lesser of 90% of the budgeted amount , or 90% of actual expenses on a monthly basis through January , 1991 after the Steering Committee had expended the first $228 ,000 . The rate case is now expected to extend through June, 1991 . The Steering Committee has been able to remain within its budget; however, the additional five months and additional tes necessitate increasing the budget from $2 . 6 million tg'.T, .,. 1tI - RECORD ,million. No additional assessments of the participating cities are required. TUEC has agreed to continue advance paj►ttfe�issECRGIn through the end of the rate case. f lfl fT. WORTN, TEX. ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITYt +0UNCIL MEMBERS - No. 7502 `of coRr� To the Mayor and Members of the City Council November 20, 1990 ;TfxPh Subject: TU ELECTRIC COMPANY RATE CASE EXPENSES While TU Electric Company has agreed to make payments in advance, the rate case expenses remain the cities ' obligation subject to a determination of reasonableness by the Public Utility Commission. Accordingly, the cities' expenses are carefully controlled and documented. Copies of the cities ' billings are submitted to both TU Electric Company and the PUC on a monthly basis . Thus far, none of the expenses have been questioned. Additional information will be provided by staff upon request . DAVID A. IVORY �� City Manager DAI :DTR:als ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS tttttttttttttttt' WELECTRI C R. H. Browder Fort Worth Region Manager November 5, 1990 To the Honorable Mayor and Members of the City Council City of Fort Worth In accordance with §21.24(c)(2) of the Public Utility Commission Rules of Practice and Procedure, Texas Utilities Electric Company is required to give notice of its intent to obtain a Certificate of Convenience and Necessity (CCN) to all cities within five miles of a proposed transmission line. In compliance with this rule, we are advising you of our intent to obtain a CCN for the relocation of a portion of TU Electric's existing Parker-Roanoke 345 kV transmission line. The route of this line is fully described in the attached Public Notice. This is for information only, and no action is required on your part. Sincerely, 100 is Attachment P.O. Box 970 Fort Worth, Texas 76101-0970 817 336-9411 A,,._y PUBLIC NOTICE Texas Utilities Electric Company (TU Electric) , in accordance with the rules of the Public Utility Commission of Texas, hereby gives notice of the Company' s intent to obtain a Certificate of Convenience and Necessity for the relocation of a portion of TU Electric ' s existing Parker-Roanoke 345 kV Transmission Line, as described below. The portion of the line to be relocated lies wholly within Tarrant County. The State Department of Highways and Public Transportation is constructing State Highway 170 west from I .H. 35 W to S.H. 114 . The proposed relocation begins at a point Ln TU Electric 's existing Parker-Roanoke 345 kV transmission line approximately 600 feet northwest of TU Electric ' s existing Alliance substation, which is located under TU Electric ' s Parker-Roanoke 345 kV transmission line approximately 900 feet east of I .H. 35 W. From the beginning point, the line will proceed in a northeasterly direction, parallel to the proposed route of S .H. 170, for a distance of 4750 feet, turning in a northerly direction and continuing approximately 1800 feet, crossing S .H. 170 and rejoining the existing route of TU Electric ' s Parker-Roanoke 345 kV transmission line. The estimated cost of this entire project is $1, 165, 696. Persons who wish to intervene in the proceeding or comment upon action sought, should contact the Public Utility Commission of Texas at 7800 Shoal Creek Boulevard, Suite 400N, Austin, Texas 78757, or call the Public Utility Commission Consumer Affairs Division at (512 ) 458-0223 or (512) 458-0227 , or (512) 458-0221 for teletypewriter for the deaf within 15 days of this notice. A complete copy of the application, including maps showing the location of the transmission line, is on file with the Public Utilitv Commission of Texas at Austin, Texas. TU ELECTRIC