HomeMy WebLinkAbout09 1217 min 366
The City Council met on December 17, 2009, at the Plainview Convention Center, 2902
West 4 Street, Plainview, Texas. The agenda for this meeting was posted in City Hall
at 11:15 a.m. on December 14, 2009. Mayor John C. Anderson presided.
Councilmembers present were: Cathy Waggoner- District 2, Belinda Pena District 3, Ron
Trusler- District 5, Wendell Dunlap- District 6 and Roland Nash District 7.
Councilmembers Kelvin Tipton- District 1 and John N. Bertsch District 4 were absent.
Staff members present were: Greg Ingham -City Manager, Leslie Pearce -City
Attorney, Will Mull Police Chief, Rusty Powers -Fire Chief, Dale Simpson- Director of Civil
Service, Jack Keller- Budget Manager, and Belinda Hinojosa -City Secretary.
Media Present: Hayley Cox, Plainview Daily Herald
Mayor Anderson led in the Invocation.
Councilmembers Kelvin Tipton and John N. Bertsch were granted excused absences.
Greg Ingham, City Manager presented for consideration Resolution R09 -216, a
Resolution by the City of Plainview, Texas "City denying Southwestern Public Service
Company's Application to Revise Certain Miscellaneous Service Charges Regarding
Renewable Energy Credits; Authorizing the City to Join With Other Cities in the Alliance
of Xcel Municipalities "AXM to Direct the Activities of Lawyers and Consultants;
Authorizing the Hiring of Attorneys and Consultants; Requiring reimbursement of
Reasonable Legal and Consultant Expenses; Finding that the Meeting Complies with
the Open Meetings Act; Making Other Findings and Provisions Related to the Subject;
and Declaring an Effective Date. On or about December 7, 2009, Southwestern Public
Service Company (SPS), a wholly -owned subsidiary of Xcel Energy, Inc., filed a
statement of intent and application to revise its Miscellaneous Service Charges Tariff.
This proposed revision would allow the sale of renewable energy credits to SPS
customers at a price mutually acceptable to SPS and the buyer. We believe that it is
important for our Cities to participate in this rate case to ensure that Xcel /SPS is using
reasonable efforts to sell its renewable energy credits at prices advantageous to
ratepayers and to SPS. Xcel /SPS chose to purchase more renewable energy and
renewable energy credits bundled with the power than it was required to purchase by
law. These excess credits can then be sold on the open market which has the potential
to generate additional revenue or revenue losses depending on the market and how it
is approached.
Staff recommends that we deny Xcel /SPS' application to review its Miscellaneous
Service Charges Tariff and participate in the proceedings before the Public Utility
Commission of Texas and authorize AXM to retain legal counsel and consultants to take
a look at and intervene with the Public Utility Commission. This is to make sure that
ratepayers are protected.
Councilmember Dunlap asked what the cost to the City would be. He was advised that
there would be no charge to the City that such would be reimbursed from the utility
company.
Mayor Anderson asked what is a renewable energy credit. He was advised by Mr.
Ingham that a renewable energy credit is one megawatt hour (MWH) of renewable
energy. Each utility in the State is required to achieve annually, certain levels of
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renewable energy. To promote the requirement to install renewable energy, a utility
may build the renewable energy itself, or buy it from someone else that produces the
renewable energy. Xcel /SPS purchased more renewable energy than required under
the law.
When it purchases renewable energy, it may either buy only the power from the seller,
and if so, the seller of the power retains ownership of the renewable energy credit
associated with that power. Or, when SPS purchases renewable energy, it may buy
both the power and the renewable energy credit associated with that power.
SPS chose to purchase the power and the renewable energy credit. This means SPS
"owns" the renewable energy credits. Because SPS purchased more renewable energy
than the law required and because it purchased the renewable energy credit bundled
with the power, it has excess renewable energy credits that it can sell in the open
market.
Mayor Anderson asked for public comment. There was no public comment.
Councilmember Trusler moved to adopt Resolution R09 -216. The motion was duly
seconded by Councilmember Nash and carried by unanimous.
Mr. Ingham announced that the meeting scheduled for December 22 has been
cancelled.
There being no further business, Mayor Anderson adjourned the meeting at 11:54 p.m.
Belinda Hinojosa
City Secretary
City Council Minutes December 17, 2009 Page 2 of 2