The URL can be used to link to this page

Home My WebLink AboutR17-397RESOLUTION NO. R17-397 A RESOLUTION BY THE CITY OF PLAINVIEW, TEXAS ("CITY") SUSPENDING SOUTHWESTERN PUBLIC SERVICE COMPANY'S PROPOSED EFFECTIVE DATE IN CONNECTION WITH ITS STATEMENT OF INTENT SUBMITTED ON ABOUT AUGUST 21, 2017; CONTINUING THE CITY'S PARTICIPATION IN THE ALLIANCE OF XCEL MUNICIPALITIES ("AXM"); DIRECTING THE ACTIVITIES OF LAWYERS AND CONSULTANTS RELATED TO SPS'S RATE PROCEEDINGS; AUTHORIZING THE HIRING OF ATTORNEYS AND CONSULTANTS; REQUIRING REIMBURSEMENT OF REASONABLE LEGAL AND CONSULTANT EXPENSES; REQUIRING SPS TO PROVIDE PROOF OF PUBLICATION OF NOTICE; FINDING THAT THE MEETING COMPLIES WITH THE OPEN MEETINGS ACT; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND DECLARING AN EFFECTIVE DATE WHEREAS, on about August 21, 2017, Southwestern Public Service Company ("SPS") filed a Statement of Intent with the City of Plainview, Texas ("City") to increase its base -rate revenue for its Texas retail service area by approximately $80.9 million, which is an increase in base revenue of about 14.9%; and WHEREAS, SPS's proposed increase of $80.9 million includes recovery of about $14.6 million through base rates of revenue that it currently recovers through its Transmission Cost Recovery Factor, which results in a net base -rate revenue increase for its Texas retail service area of approximately $66.3 million, which equates to an increase in base revenue of about 12.3%; and WHEREAS, the City is a regulatory authority under the Public Utility Regulatory Act ("PURA") and under Chapter 33, §33.001 et seq. of PURA has exclusive original jurisdiction over SPS' rates, operations, and services within the municipality; and WHEREAS, in order to maximize the efficient use of resources and expertise in reviewing, analyzing and investigating SPS' rate request and its changes in tariffs it is prudent to coordinate the City's efforts with a coalition of similarly situated municipalities; and WHEREAS, the City, in matters regarding applications by SPS to change rates, has in the past joined with other local regulatory authorities to form the Alliance of Xcel Municipalities ("AXM") and hereby continues its participation in AXM; and WHEREAS, SPS' rate request, which was filed on about August 21, 2017, consists of a voluminous amount of information including SPS' rate -filing package, pre -filed direct testimony, exhibits, schedules, and workpapers; and 1 of 3 SPS 2017 Rate Application Filed on Aug. 21, 2017 Suspension Resolution 11 12 WHEREAS, SPS proposed September 25, 2017 as the effective date for its requested increase in rates, which is the 35th day after the date SPS submitted its application; and WHEREAS, it is not possible for the City to complete its review of SPS' filing within 35 days; and WHEREAS, the City will need an adequate amount of time to review and evaluate SPS' rate application to enable the City to adopt a final decision as a local regulatory authority with regard to SPS' requested rate increase; and WHEREAS, SPS filed its Statement of Intent to raise rates with the City and with the Public Utility Commission of Texas ("PUCT") on the same date, August 21, 2017, and it is important to intervene in the PUCT proceeding because the PUCT's decisions could impact rates within the City. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PLAINVIEW, TEXAS THAT: Section 1. The findings set out in the preamble are in all things hereby approved. Section 2. SPS's proposed effective date of September 25, 2017 for its filing of August 21, 2017, is hereby suspended for an additional one hundred and thirty-five (135) days, or at least until February 7, 2018. Section 3. The statutory suspension period will be extended automatically day for day should SPS extend its proposed effective date, and may be further extended if SPS does not provide timely, meaningful, and proper public notice of its request to increase rates, or if its rate -filing package is materially deficient. Section 4. The City authorizes intervention in proceedings related to SPS' Statement of Intent before the Public Utility Commission of Texas and any related proceedings in any courts of law. Section 5. The City continues its participation with other cities in a coalition of cities known as the Alliance of Xcel Municipalities ("AXM") with the understanding that the Steering Committee of AXM is to provide direction and guidance to Special Counsel representing said cities. Section 6. The City hereby retains Herrera & Boyle, PLLC as Special Counsel to represent the City with regard to SPS' requested increase in rates and related proceedings before local and state regulatory authorities and any court of law and authorizes Special Counsel to employ such rate experts as may be necessary for review and evaluation of SPS' rate application. 2 of 3 SPS 2017 Rate Application Filed on Aug. 21, 2017 Suspension Resolution Section 7. The City, in coordination with the Steering Committee, shall review the invoices of the lawyers and rate experts for reasonableness before submitting the invoices to SPS for reimbursement. Section 8. SPS shall reimburse the City on a monthly basis, through AXM's coordinating city, the City of Amarillo, Texas, for the reasonable costs of attorneys and consultants and expenses related thereto, upon the presentation of invoices reviewed by the City of Amarillo. Section 9. Not later than seven days after SPS has completed publication of notice of its proposed increase in rates, SPS shall notify AXM that it has completed notice by providing proof of notice to AXM's Special Counsel, Herrera & Boyle, and such proof shall be in the form of an affidavit from a representative from SPS that has personal knowledge that SPS has published notice; such affidavit shall include a copy of notice SPS published. Section 10. The City Secretary or other appropriate city official as a courtesy shall send SPS a copy of this Resolution to Jeremiah W. Cunningham, Rate Case Manager, Southwestern Public Service Company, 790 S. Buchanan St. Amarillo, Texas 79101 and to Mr. Alfred R. Herrera, Herrera & Boyle, PLLC, 816 Congress Ave., Suite 950, Austin, Texas 78701. Section 11. The meeting at which this Resolution was approved was in all things conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551. Section 12. The findings set out in the preamble are in all things hereby approved. Section 13. This Resolution shall become effective from and after its passage. PASSED AND APPROVED this 12th day of September, 2017. ATTEST: City Secretary 3 of 3 SPS 2017 Rate Application Filed on Aug. 21, 2017 Suspension Resolution 13