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HomeMy WebLinkAbout18-3678 ord429 ORDINANCE NO. 18-3678 AN ORDINANCE OF THE CITY OF PLAINVIEW, TEXAS APPROVING A SETTLEMENT AGREEMENT BETWEEN THE ALLIANCE OF XCEL MUNICIPALITIES ("AXM") AND SOUTHWESTERN PUBLIC SERVICE COMPANY ("SPS" OR "COMPANY") REGARDING THE COMPANY'S STATEMENT OF INTENT TO CHANGE ELECTRIC RATES IN ALL CITIES EXERCISING ORIGINAL JURISDICTION; REQUIRING REIMBURSEMENT OF THE CITY'S RATE CASE EXPENSES; DETERMINING THAT THIS ORDINANCE WAS PASSED IN ACCORDANCE WITH THE REQUIREMENTS OF THE TEXAS OPEN MEETING ACT; REPEALING ANY PRIOR RESOLUTIONS INCONSISTENT WITH THIS ORDINANCE AND REQUIRING DELIVERY OF THIS ORDINANCE TO THE COMPANY AND LEGAL COUNSEL WHEREAS, the City of Plainview, Texas ("City") has exclusive original jurisdiction as a regulatory authority over Southwestern Public Service Company ("SPS" or "Company") rates, operations, and services within the City; and WHEREAS, the City is also an electric utility customer of SPS, and has an interest in SPS's rates and charges; and WHEREAS, SPS filed a Statement of Intent with the City on or about August 21, 2017 to increase its base revenue requirement by approximately $80.9 million on a Texas retail jurisdictional basis, which includes $14.6 million currently being recovered through SPS's Transmission Cost Recovery Factor ("TCRF"), for a net base rate increase of $66.3 million, which equates to a 12.3% increase in revenues; and WHEREAS, SPS filed rebuttal testimony in the pending proceeding at the Public Utility Commission of Texas revising its requested revenue increase to a $32 million increase with a net increase of $17.4 million after accounting for the inclusion of $14.6 million in revenues currently being collected through SPS's TCRF; and WHEREAS, the City took action to suspend the effective date and to coordinate a response to SPS' filing with other similarly situated municipalities (such participating cities are referred to herein as the Alliance of Xcel Municipalities ("AXM")); and WHEREAS, the City took action on or before September 25, 2017 to suspend the effective date; and Ordinance No. 18-3678 Page 1 of 4 430 WHEREAS, one of AXM's goals is to minimize rate -case expenses to the extent reasonable, that otherwise would result from lengthy, contested rate -case proceedings before the Public Utility Commission of Texas ("PUCT") and through the appellate process in the courts for the pending rate case; and WHEREAS, AXM authorized its attorneys and experts to formulate and review reasonable settlement positions to resolve SPS' pending request to increase rates; and WHEREAS, AXM's attorneys met numerous times with the Company to negotiate a Settlement Agreement resolving the issues raised by the Company's Statement of Intent filing; and WHEREAS, AXM's attorneys and experts have evaluated what a likely outcome from a fully -litigated proceeding would be and are of the opinion that the parties' agreement for no increase in revenues as noted in the negotiated Settlement Agreement attached as "Exhibit A," compares favorably with a likely outcome from a fully -litigated proceeding; and WHEREAS, after extensive review and analysis, AXM's attorneys and experts found that no increase in revenues instead of the $66.3 million net base revenue increase initially proposed, and later revised to a net $17.4 million increase, by SPS is reasonable; and WHEREAS, AXM's attorneys and experts and AXM's Steering Committee, based on the advice of its attorneys and experts, recommend that AXM's members approve the negotiated Settlement Agreement; and WHEREAS, under the Public Utility Regulatory Act, the City has a right to reimbursement of its reasonable rate -case expenses and SPS has an obligation to reimburse the City's reasonable rate -case expenses; and WHEREAS, the Settlement Agreement is in the public interest; NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF PLAINVIEW, TEXAS HEREBY ORDAINS THAT: Ordinance No. 18-3678 Page 2 of 4 431 Section 1. The findings set out in the preamble are in all things approved and incorporated herein as if fully set forth. Section 2. The City Council finds that the Settlement Agreement, which is attached hereto as EXHIBIT A and incorporated herein, is in the public interest and is hereby endorsed in all respects, including requiring SPS to reimburse the AXM cities' rate case expenses. Section 3: The City Council hereby directs SPS to reimburse the AXM cities the rate case expenses incurred directly or indirectly related to SPS' statement of intent to increase rates. Section 3. SPS' existing rates, which will not change as a result of the Settlement Agreement, and are just and reasonable. Section 4. To the extent any resolution or ordinance previously adopted by the Council is inconsistent with this Ordinance, it is hereby repealed. Section 5. The meeting at which this Ordinance was approved was in all things conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551. Section 6. If any one or more sections or clauses of this Ordinance is adjudged to be unconstitutional or invalid, such judgment shall not affect, impair or invalidate the remaining provision of this Ordinance and the remaining provisions of the Ordinance shall be interpreted as if the offending section or clause never existed. Section 7. This Ordinance shall become effective from and after its passage. Section 8. The City Secretary or other appropriate city official as a courtesy, shall provide SPS a copy of this Ordinance by sending a copy of the Ordinance to William A. Ordinance No. 18-3678 Page 3 of 4 432 Grant, Regional Vice -President, Regulatory and Strategic Planning, Southwestern Public Service Company, 790 S. Buchanan Street, Amarillo, Texas 79101 and AXM shall be notified by sending a copy of this Ordinance to Mr. Alfred R. Herrera, Herrera Law & Associates, PLLC, 816 Congress Ave., Suite 950, Austin, Texas 78701. PASSED AND APPROVED on first reading this 14th day of August, 2018. PASSED AND APPROVED on second reading this 28th day of August, 2018. • C Wendell Dunlap, Mayor SL Belinda Hinojosa, Cit -cretary Ordinance No. 18-3678 Page 4 of 4 Exhibit "A" SOAH DOCKET NO. 473-17-5771 PUC DOCKET NO. 47527 APPLICATION OF SOUTHWESTERN § BEFORE THE STATE OFFICE PUBLIC SERVICE COMPANY FOR § OF AUTHORITY TO CHANGE RATES § ADMINISTRATIVE HEARINGS UNOPPOSED STIPULATION (Filename: 47527 Unopposed Stipulation.docx; Total Pages: 26) Table of Contents UNOPPOSED STIPULATION 3 1. Revenue Requirement — No Change to Current Base Rates and the TCRF is Not Set to Zero 4 2. Resolution of Revenue Requirement Issues 5 3. Rate Case Expenses 10 4. Timing of SPS's Next Base Rate Case 10 5. TCRF, Distribution Cost Recovery Factor ("DCRF"), and Purchased Power Cost Recovery Factor ("PCRF") Filings 10 6. Renewable Energy Credits ("RECs") 10 7. Schedule S Waiver 10 8. Transition Plan to Eliminate the Residential Space Heating ("RSH") Rate 11 9. Abandonment of Docket No. 43695 Appeal 12 10. Cash Working Capital for Earnings Monitoring Reports 12 11. Classes for SPS Energy Efficiency Cost Recovery Factor ("EECRF") Filings 12 12. Solar PPAs 13 13; Proposed Order 13 14. Obligation to Support this Stipulation 13 15. Effect of Stipulation in this Proceeding 13 16. Effect of Stipulation in Other Regulatory Proceedings 14 17. Entire Agreement 15 18. Multiple Counterparts 15 CERTIFICATE OF SERVICE 26 SOAH Docket No. 473-17-5771 PUC Docket No. 47527 -1- Unopposed Stipulation EXHIBIT IJojntEx.No. 1 1 433 434 ATTACHMENTS: Attachment A — Tolk Depreciation Rates 27 Attachment B — Pension and OPEB Expense Tracker Baseline and Amortization 30 Attachment C — Proposed Final Order 32 SOAff Docket No. 473-17-5771 Unopposed Stipulation PUC Docket No. 47527 -2- 2 SOAH DOCKET NO. 473-17-5771 PUC DOCKET NO. 47527 APPLICATION OF SOUTHWESTERN § BEFORE THE STATE OFFICE PUBLIC SERVICE COMPANY FOR § OF AUTHORITY TO CHANGE RATES § ADMINISTRATIVE HEARINGS 435 UNOPPOSED STIPULATION The Signatories to this Unopposed Stipulation ("Stipulation"), which is dated as of June 29, 2018, are the following: • Staff ("Staff") of the Public Utility Commission of Texas ("Commission"); • Southwestern Public Service Company ("SPS"); • International Brotherhood of Electrical Workers Local Union 602 ("IBEW" • Texas Industrial Energy Consumers ("TIEC"); • Texas Cotton Ginners' Association ("TCGA"); • Alliance of Xcel Municipalities ("AXM"); • Office of Public Utility Counsel ("OPUC"); • United States Department of Energy ("DOE"); • Amarillo Recycling Co., Inc.; • Wal-Mart Stores Texas, LLC, and Sam's East, Inc. ("Wal-Mart"); • Sierra Club; and • Canadian River Municipal Water Authority ("CRMWA"). Golden Spread Electric Cooperative ("GSEC") does not join this Stipulation but does not oppose it. 1 The parties to this Stipulation shall be referred to individually either as a Signatory or by the acronym assigned above, and collectively as the Signatories. The Signatories submit this I In addition to the parties listed above, there is one additional intervenor, Mr. Nathan Porterfield, an individual residential customer. SPS has attempted to contact Mr. Porterfield, and has provided him drafts of the Stipulation, but has been unable to confer with hien regarding this Stipulation. SOAH Docket No. 473-17-5771 Unopposed Stipulation PUC Docket No. 4752? 3 436 Stipulation to the Commission as representing a just and reasonable disposition of the issues related to this docket consistent with the public interest. The Signatories request approval of this Stipulation and entry of findings of fact and conclusions of law consistent with that approval. On August 21, 2017, in accordance with Chapter 36 of the Public Utility Regulatory Act, Tex. Util. Code Ann. §§ 11.001-58.303 (West 2016), 59.101-66.017 (West 2007 & Supp. 2016) ("PURA"), SPS filed its application with the Commission seeking authority to revise its base rates. SPS's application used a test year of April 1, 2016 through March 31, 2017 ("Test Year"), with an update period of April 1, 2017 through June 30, 20I7 ("Update Period"), as authorized by PURA § 36.112 and 16 Tex. Admin. Code ("TAC") § 25.246. SPS filed its case update on October 5, 2017, including the actual information for the Update Period. SPS's application, as later modified by update, supplemental, and rebuttal testimony, requested, among other things, that the Commission authorize a $32,009,475 increase in SPS's Texas retail jurisdictional base rate revenues. In conjunction with the base rate increase, SPS's transmission cost recovery factor approved in Docket No. 468772 ($14,373,803) would be set to zero. The final base rates set in this proceeding relate back to January 23, 2018 in accordance with PURA § 36.211. Under State Office of Administrative Hearings Order No. 6, the current statutory deadline is November 2, 2018. By this Stipulation, the Signatories resolve all of the issues among them related to SPS's application in this docket, and agree as follows:3 Revenue Requirement — No Change to Current Base Rates and the TCRF is Not Set to Zero (A) There is a change of zero dollars in SPS's net revenues by maintaining the base rates set in Docket No. 455244 and the TCRF approved in Docket No. 46877. The 2 Application of Southwestern Public Service Company for Approval of Transmission Cost Recovery Factor, Docket No. 46877 Order (Jun, 29, 2017). J The issue of rate case expenses was severed into Docket No. 47588. The DOE Pantex billing dispute issues were severed into Docket. No. 48440. 4 Application of Southwestern Public Service Company for Authority to Change Rates, Docket No. 45524, Order (Jan. 26, 2017). SOAH Docket No. 473-17-5771 Unopposed Stipulation PUC Docket No. 47527 -4- 4 rate tariffs will remain the same as those currently on file and approved by the Commission, or the local regulatory authorities, as the case may be. (B) (i) SPS is allowed to recoup the TCRF rider revenue it would have billed ("revenue to be recouped") had it not ceased billing the TCRF rider for usage during the period January 23, 2018 through June 10, 2018 ("recoupment period"). SPS will determine the revenue to be recouped by rebilling customer usage for the recoupment period. By November 30, 2018, SPS will file an application requesting approval of the specific TCRF recoupment rider charges. (ii) In calculating the revenue to be recouped, SPS will include the revenue that would have been billed to all service schedules subject to the TCRF established in Docket No. 46877, but the TCRF recoupment rider will be designed so that certain service schedules ("exempt service schedules") will be charged zero dollars under the TCRF recoupment rider and the revenue that would have been recouped from the exempt service schedules will instead be collected from the other service schedules that are subject to the TCRF established in Docket No. 46877 ("paying service schedules"). The paying service schedules will be responsible for the revenue that otherwise would be recouped from the exempt service schedules on an equal percentage base rate (including TCRF) basis using Updated Test Year billing determinants. The exempt service schedules are: Secondary General Service; Primary General Service; Large School; and Small Municipal and School Service. 2. Resolution of Revenue Requirement Issues This Stipulation is a black box settlement for all revenue requirement issues concerning Texas retail rates except for the following specifications: (A) Depreciation Expense. SOAR Docket No. 473-17-5771 Unopposed Stipulation PUC Docket No. 47527 -5- 5 437 438 There will be no change in SPS's existing Commission -approved depreciation rates, except as provided in Section 2(A)(ii), The Signatories agree that the Commission should approve 50% of SPS's proposed change in depreciation rates for the Tolk Generating Station Units 1 and 2 based upon a retirement date of 2032. The resulting Tolk depreciation rates are provided in Attachment A to this Stipulation. All Signatories reserve their rights regarding Tolk retirement dates in all future proceedings. SPS agrees to update its Tolk Station economic life analysis and include it in SPS's next Texas retail base rate case application. (B) Financial Items. (i) The Signatories acknowledge that SPS has explained that in light of the treatment of Tolk depreciation rates in Section 2(A)(ii) and SPS's concerns with the impact of the Tax Cuts and Jobs Act, SPS intends to manage its Texas retail financing operations to a 57% equity capitalization ratio. (ii) The Signatories acknowledge that SPS has stated its concerns that in light of the credit quality, cash flow, and financial metrics concerns it has raised, SPS asserts that an equity capitalization ratio of Less than 57% (in light of' Section 2(A)(ii)) likely would have adverse cost consequences for SPS and its customers. (iii) SPS acknowledges that the Signatories disagree with SPS's concerns and assertions that are described in Section 2(B)(ii). (iv) SPS agrees that the capital structure for ratemaking purposes will be an issue in its next base rate case and that this Stipulation creates no presumption about the appropriate capital structure for ratemaking purposes in future proceedings. All Signatories reserve their rights regarding an appropriate equity capitalization ratio in SPS's next base rate case. SOAH Docker No. 473-17-5771 Unopposed Stipulation PUC Docket No. 47527 -6- 6 (v) For Allowance for Funds Used During Construction purposes only, SPS will use a 9.5% ROE in conjunction with using its actual capital structure per the instructions in the Uniform System of Accounts. (C) Tax Cuts and Jobs Act ("TCJA"). (i) This Stipulation incorporates the full effects of the TCJA. The relate -back date in this rate case is January 23, 2018, which is two days before the Commission issued its order in Project No. 47945. (a) With regard to the reduction in the corporate federal income tax rate from 35% to 21% and the corresponding change to SPS's income tax expense, both SPS's rebuttal cost of service and Staff's cost of service in its direct case calculated SPS's federal income tax expense using the 21% tax rate. Thus, the disposition of the regulatory liability the Commission directed SPS to establish in Project No. 47945 regarding the reduction in the corporate tax rate is resolved through the base rates established under this settlement, and SPS has no refund or bill credit obligation regarding that regulatory liability. (b) With regard to the excess Accumulated Deferred Federal Income Taxes ("ADFIT") and Net Operating Loss ("NOL") -related balances resulting from the TCJA, both SPS's rebuttal cost of service and Staff's cost of service in its direct case reflected amortizations of excess ADFIT balances for protected and unprotected plant items, excess ADFIT balances for non -plant items, and excess NOL -related balances resulting from the TCJA as restated for the June 30, 2017 Updated Test Year. SPS acknowledges that it is obligated to continue to unwind its excess ADFIT and NOL -related balances resulting from the change in tax rates under the TCJA, and that continued unwinding will be reflected in the calculation of SPS's cost of service in future base rate cases along with the calculation of all other components of the SOAH Docket No. 473-17-577/ Unopposed Stipulation PUC Docket No. 47527 -7- 7 439 440 cost of service. Thus, for the Updated Test Year ending June 30, 2017, the disposition of the regulatory liability the Commission directed SPS to establish in Project No. 47945 regarding the excess ADFIT and NOL -related balances is resolved through the base rates established under this settlement and SPS's obligation to continue unwinding those balances in future rate cases. (1) In future rate cases, SPS will continue to unwind the excess ADFIT balances associated with protected plant items based on the Average Rate Assumption Method ("ARAM"), which is the amortization period SPS used to calculate the unwinding of this category of excess ADFIT in its rebuttal cost of service, and which Staff also used in its cost of service. (2) In the current rate case, SPS will unwind the excess ADFIT balances associated with unprotected plant items based on the ARAM. Signatories reserve the right to address the appropriate amortization of the remaining balances of ADFIT for unprotected plant items in SPS's next rate case. (3) In future rate cases, SPS will continue to unwind the excess ADFIT balances associated with non -plant items using a five-year amortization period, which is the amortization period SPS used to calculate the unwinding of this category of excess ADFIT in its rebuttal cost of service, and which Staff also used in its cost of service. (4) In future rate cases, SPS will continue to unwind the excess NOL -related balances over a 44 -year period, the average ARAM period, which is the amortization period SPS used to calculate the unwinding of the excess NOL -related balances in its rebuttal cost of service, and which Staff also used in its cost of service. SOAR Docket No. 473-17-5771 PUC Docket No: 47527 -8- Unopposed Stipulation 8 (5) In future rate cases, SPS will address its excess ADFIT balances, and the unwinding of those balances, associated with protected and unprotected plant items, non -plant items, and NOL -related balances that may have accrued from the end of the Updated Test Year in this case through December 31, 2017. (D) Capital Additions. The capital additions that SPS closed to plant in service during the period of January 1, 2016 through June 30, 2017 that are included in SPS's Updated Test Year rate base are reasonable and necessary. (E) Pension and Other Post -Employment Benefit ("OPEB") Expense Tracker. (i) The pension and OPER expense tracker balance as of June 30, 2017 is set forth in Attachment B to this Stipulation. This balance will be amortized over a 24 -month period starting February 1, 2018. Any remaining unamortized amounts can be included in a subsequent base rate case filing and are deemed reasonable and necessary, The baseline for the pension and OPEB expense tracker as of July 1, 2017 is set forth in Attachment B to this Stipulation. (F) Margins on Off -System Energy Sales. For calculating eligible fuel expense from the date of the final order in this case going forward until the earlier of the date of the final order in SPS's next fuel reconciliation date or the relate -back date in SPS's next base rate case, SPS will credit Texas retail customers with 100% of the Texas retail margins on generation book off -system energy sales. (G) Demand and Energy Loss Factors. The Signatories agree that SPS's line loss study presented in this case is approved and the resulting demand and energy loss factors are approved. The Signatories agree that the effective date of the new demand and energy loss factors is February 1, 2018. SOAR Docket No. 473-17-5771 Unopposed Stipulation PUC Docket No. 47527 -9- 9 441 442 3. Rate Case Expenses The rate case expenses incurred for this docket will remain the subject of Docket No. 47588, but SPS agrees that in Docket No. 47588 it will cap its request for rate case expenses associated with Docket No. 47527 to $1.45 million related to SPS's rate case expenses and AXM's rate case expenses and will nonetheless reimburse AXM's rate case expenses. The cap in Docket No. 47588 applies only to rate case expenses associated with Docket No. 47527 and does not apply to SPS's request for the rate case expenses, including AXM's, for Docket Nos. 46025 (fuel reconciliation) and 46877 (TCRF). 4. Timing of SPS's Next Base Rate Case SPS confirms that it will file its next base rate case no later than December 31, 2019. 5. TCRF, Distribution Cost Recovery Factor ("DCRF"), and Purchased Power Cost Recovery Factor ("PCRF") Filings SPS agrees it will not file for a TCRF, DCRF, or PCRF until after the Commission issues its final order in the next SPS rate case. 6. Renewable Energy Credits ("RECs") (A) Bundled Texas -generated RECs will be priced at $0.27 starting on June 1, 2018; and (B) The Texas Commission will establish the value for Texas -generated bundled RECs and the New Mexico Public Regulation Commission will establish the value for New Mexico -generated bundled RECs. 7. Schedule S Waiver For SPS's next base rate case, consistent with Section D of the Unanimous Stipulation in Docket No. 46328 (the rate case expenses case for Docket No. 45524), the Signatories agree to support or not oppose a:request by SPS to waive the requirement to file Schedule S of the current rate filing package, provided that the test year (or update period) for the next base rate case ends on the last day of a fiscal quarter. SOAH Docket No. 473-17-5771 PUC Docket No. 47527 -10- Unopposed Stipulation 10 8. Transition Plan to Eliminate the Residential Space Heating ("RSH") Rate (A) SPS will propose a Residential Service ("RS") rate design in its next base rate case that eliminates the RSH Rider consistent with the RS rate design proposed in this rate case. The new rate design for the Residential class will be designed to moderate the effect on RSH customers of eliminating the RSH option. The new rate design is intended to be revised or eliminated in future rate proceedings as the need to moderate the effect of the elimination of the RSH Rider on RSH customers diminishes. SPS agrees to make available upon request cost and billing determinant information necessary to calculate RS rates based on initial consumption band alternatives of 400 kilowatt-hours ("kWh"), 500 kWh, 600 kWh, 700 kWh, 800 kWh, 900 kWh, 1,000 kWh, 1,100 kWh, and 1,200 kWh. (B) If, as in Docket No. 45524, further mitigation of rate impacts for RSH customers is deemed necessary, SPS may propose a temporary rider designed to provide a credit per kWh to all Residential customers for above-average residential consumption during the winter months as defined in the current RS rate tariff (billing months of October through May), to be phased out over a period of time. The cost of the credit will be recovered through an increase to the RS energy charge throughout the year, with the increase to be phased out concurrent with the phase-out of the credit and the phase-out of the RSH rider, in a manner designed to be revenue -neutral for SPS. The temporary rider will end at the conclusion of the summer months as defined in the current RS rate tariff (billing months of June through September) in the year after the effective date of the new rates set in SPS's next base rate case, unless SPS, Staff, and OPUC jointly recommend a different ending date and the Commission approves that date. Rate changes under the temporary rider and the elimination of the rider are not to occur during the winter months (as defined in the current RS rate tariff). The target end date for the temporary rider is the end of the summer period concluding September 30, 2020. S0.911 Docket No. 473-17-5771 PUC Docket No. 47527 -11- Unopposed Stipulation 11 443 444 (C) SPS agrees to continue to implement the plan developed in cooperation with Staff and OPUC to: (1) develop a plan to inform RSH customers that the RSH option is ending and to communicate to RSH customers the value of the Residential Time of Use Rider; and (2) to market the Residential Time of Use Rider in general. SPS agrees to implement the plans prior to the conclusion of its next base rate case. (D) Beginning with SPS's next base rate case, any cap on the number of customers joining the residential time -of -use ("TOU") rate plans will not include a limit on RSH customers seeking to participate in the TOU rate plans. 9. Abandonment of Docket No. 43695 Appeal SPS agrees to abandon its appeal from Docket No. 43695. 10. Cash Working Capital for Earnings Monitoring Reports For preparation of SPS's Earnings Monitoring Reports for reporting years 2018 and 2019, SPS's total company Cash Working Capital is $-16,753,708 and SPS's Texas retail amount is $-9,134,277. 11. Classes for SPS Energy Efficiency Cost Recovery Factor ("EECRF") Filings For all SPS EECRF cases filed before the final order in SPS's next base rate case becomes final, as defined under Tex. Govt. Code § 2001.144, the classes approved in Docket No. 459165 will: (a) continue to be the classes for purposes of SPS's EECRF cases; and (b) be considered the rate classes in SPS's "most recent base -rate proceeding" under 16 Tex. Admin. Code § 25.181(c)(49), Those classes are: Residential Service; Small General Service; Secondary General Service; 5 Application of Southwestern Public Service Company to Adjust Its Energy Efficiency Cost Recovery Factor, Docket No. 45916, Order at Finding of Fact No. 23 (Sept. 23, 2016). SOAH Docket No. 473-17-5771 Unopposed Stipulation PUC Docket Na. 47527 -12- 12 Primary General Service; Small Municipal and School Service; Large Municipal Service; and Large School Service. 12. Solar PPAs The Signatories agree that SPS's request for a finding that it acted prudently in entering into the purchased power agreements with NextEra Energy Resources Acquisition, LLC for the Roswell Solar and Chaves County Solar facilities (collectively, "Solar PPAs") should be deferred until SPS's next fuel reconciliation proceeding. The Signatories support applying the prudence or imprudence determination in the next fuel reconciliation proceeding to the entire period in which the Solar PPAs are in effect. A finding of the prudence of entering into the Solar PPAs would not be dispositive as to the prudence of SPS's day-to-day operations or administration under the contracts. The Signatories reserve all rights related to the Solar PPAs in that proceeding, including whether SPS has met its burden of proof to demonstrate that it was prudent to enter into the Solar PPAs. 13. Proposed Order The Signatories agree to request entry of the proposed order shown on Attachment C to this Stipulation. 14. Obligation to Support this Stipulation The Signatories agree that they will support this Stipulation before the Commission. 15. Effect of Stipulation in this Proceeding (A) There are no third -party beneficiaries of this Stipulation. This Stipulation resolves issues only with respect to the Texas retail jurisdiction and shall not be binding on or have any effect on proceedings in other jurisdictions. Signatories are not agreeing to any methodology or theory that may support or underlie any of the dollar amounts, rates in tariffs, depreciation rates, dollar balances, or other monetary or numerical values set out in, or attached to, this Stipulation. SON! Docket No. 473-17-5771 Unopposed Stipulation PUC Docket No, 47527 -13- 13 445 446 (B) This Stipulation has been drafted by all the Signatories and is the result of negotiation, compromise, settlement, and accommodation. The Signatories agree that this settlement is in the public interest. The terms and conditions in this Stipulation are intended to work in concert with each other as an integrated whole for the purposes of an outcome in this docket that is in the public interest and that will result in just and reasonable rates. Thus, the various provisions of this Stipulation are not severable. None of the provisions of this Stipulation shall become fully operative unless the Commission shall have entered a final order consistent with this Stipulation. If the Commission does not issue a final order consistent with the terms of this Stipulation, each Signatory has the right to withdraw from this Stipulation, to submit testimony, and to obtain a hearing and advocate any position it deems appropriate with respect to any issue in this Stipulation. 16. Effect of Stipulation in Other Regulatory Proceedings (A) This Stipulation is binding on each of the Signatories only for the purpose of settling the issues as set forth herein in this jurisdiction only and for no other purposes. The matters resolved herein are resolved on the basis of a compromise and settlement. Except to the extent that this Stipulation expressly governs a Signatory's rights and obligations for future periods, this Stipulation shall not be binding or precedential on a Signatory outside of this proceeding or a proceeding to enforce the terms of this Stipulation. Each Signatory acknowledges that a Signatory's support of the matters contained in this Stipulation may differ from the position taken or testimony presented by it in other dockets or other jurisdictions. To the extent that there is a difference, a Signatory does not waive its position in any of those other dockets or jurisdictions, Because this is a stipulated resolution, no Signatory is under any obligation to take the same positions as set out in this Stipulation in other dockets or jurisdictions, regardless of whether other dockets present the same or a different set of circumstances, except as otherwise may be explicitly provided by this Stipulation. Agreement by SOAH Docket No. 473-17-5771 Unopposed Stipulation PUC Docket No. 47527 -14- 14 the Signatories to any provision in this Stipulation will not be used against any Signatory in any future proceeding with respect to different positions that may be taken by that Signatory. The Signatories agree that in the event of a violation of the immediately preceding sentence, a violating Signatory will be given notice of violation in writing, which notice can be provided by e-mail, and a reasonable opportunity to cure. (B) The provisions of this Stipulation are intended to relate to only the specific matters referred to herein. By agreeing to this Stipulation, no Signatory waives any claim it may otherwise have with respect to issues not expressly provided for herein. The Signatories further understand and agree that this Stipulation represents a negotiated settlement of all remaining issues in this proceeding: (C) This Stipulation resolves the stated issues in the Texas retail jurisdiction only, and this Stipulation does not resolve any claims, issues or proceedings pending in or pertaining to other jurisdictions. 17. Entire Agreement This Stipulation contains the entire understanding and agreement of the Signatories, and it supersedes all other written and oral exchanges and negotiations among them or their representatives with respect to the subjects contained in the Stipulation. 18. Multiple Counterparts Each copy of this Stipulation may not bear the signatures of all the Signatories but will be deemed fully executed if all copies together bear the signatures of all Signatories. Fully and duly authorized representatives of the Signatories have signed this Stipulation as of the date first set forth above. [signature pages follow] SOAH Docket No. 473-17-5771 PUC Docket No. 47527 -15- Unopposed Stipulation 15 447 448 STAFF OF THE PUBLIC UTILITY COMMISSION OF TEXAS By: 4 --- Richard Nemer Hunter Burkhalter Eleanor D'Ambrosio Attorneys of Record SOUTHWESTERN PUBLIC SERVICE COMPANY By: Stephen Fogel Ron H. Moss Attorneys of Record AMARILLO RECYCLING COMPANY, INC. ALLIANCE OF XCEL MUNICIPALITIES 13y: --- — -- Rick L. Russwunn Moore, Lewis, Russwunn, PC Attorney of Record CANADIAN RIVER MUNICIPAL WATER AUTHORITY By: R. Michael Anderson Joshua D. Katz Bickerstaff, Heath, Delgado, Acosta, LLP Attorneys of Record OFFICE OF PUBLIC UTILITY COUNSEL By: Sara J. Ferris Cassandra Quinn Christiaan Siano Attorneys of Record .SO.II•l Docket No. 473-17-577/ P!!C Docket No. 47527 By: Alfred R. Herrera Brennan Foley Herrera Law & Associates, PLLC Attorneys of Record INTERNATIONAL BROTHERHOOD OF ELECTRICAL WORKERS LOCAL UNION 602 13y: Jamie L. Mauldin Thomas L. Brocato Lloyd Gosselink Rochelle & Townsend, PC Attorneys of Record SIERRA CLUB By: Joshua Smith Matthew E. Miller James Z. Brazell Attorneys of Record -/6 Unopposed Stipulation 16 STAFF OF THE PUBLIC UTILITY SOUTHWESTERN PUBLIC SERVICE COMPANY COMMISSION OF TEXAS By: Richard Nemer Hunter Burkhalter Eleanor D'Ambrosio Attorneys of Record By: Stephen Fogel Ron H. Moss Attorneys of Record AMARILLO RECYCLING COMPANY, INC. ALLIANCE OF XCEL MUNICIPALITIES By: Rick L. Russwurm Moore, Lewis, Russwurm, PC Attorney of Record By: Alfred R. Herrera Brennan Foley Herrera Law & Associates, PLLC Attorneys of Record CANADIAN RIVER MUNICIPAL WATER INTERNATIONAL BROTHERHOOD OF AUTHORITY ELECTRICAL WORKERS LOCAL UNION 602 By: R. Michael Anderson Joshua D. Katz Bickerstaff, Heath, Delgado, Acosta, LLP Attorneys of Record OFFICE OF PUBLIC UTILITY COUNSEL By: Sara J. Ferris Cassandra Quinn Christiaan Siano Attorneys of Record By: Jamie L. Mauldin Thomas L. Brocato Lloyd Gosselink Rochelle & Townsend, PC Attorneys of Record SIERRA CLUB By: Joshua Smith Matthew E. Miller Janes Z, Brazell Attorneys of Record SOAHDocket No. 473-17-5771 PUC Docker No. 47527 -16- Unopposed Stipulation I6a 449 450 I'THE PUBLIC UTILITY SOUTHWESTERN PUBLIC SERVICE SION OF TEXAS C'ONIPANY Ily: 4. .1: •t:rtl Nemcr •ra I3tu•khalter :n:ur 1)'And.aosio .•.::eys of Record Stephen Fogel Icon II. tVioss Attorneys oI' Record t\MAIUIJ.0 kliC'YC'1.IN(; COMPANY, INC. AL.I.IAN(.'I.i or XC.7!1., MUNICIPALITIES y:Ity: ,::1 I.. Rns5 \' R'Ii Allred it, Herrera ,•,,',:•;, Lewis. Russwurni, PC' Brennan Foley ,,,•iey of Record I lerrcra Law & Associates, PLLC Attorneys of Record . AN RIVER MUNI('II'AL, WATER ,1;ITY INI'ERNA'I'IONAI. 13ROTI1UR1-1OO1) OF ELECTRICAL C TRICAL WOIRKERS LOCAL UNION (d l? 1.1y: ___ _ -- - .. I$y: ,•,_clatel Anderson ,Itunio 1.. Mauldin .,:.a D. K;ilz 'I'hontas 1.. IilUeaLo - •,::; •rstair' Ilu1I.h, L)cagado, /\tush, 1.1 •P Lloyd (;ossa:Iink 1toohclle &I'ownsui(1, PC.' ,: ,. icys of Record Attorneys of Record )1I'lll3f.EC' tIi II.fl'Y (:OtiNsisl. SII?RRA (`I.UR Ity: Rv. ):r•; I7errls Joshua Smith , r.:x.ndra Quinn tvluIlhew E. IVIiiler .:•,:•iaan Siano .lama::; Z. Brazell toys of Record Attorney); of Itccnrd • • ,:r: „'f Mk .173-17--3771 Unu/,pn•ced Silpnlarlun No, -17531 / () 17 STAFF OF THE PUBLIC UTILITY SOUTHWESTERN PUBLIC SERVICE COMMISSION OF TEXAS By: Richard Nemer Hunter Burkhalter Eleanor D'Ambrosio Attorneys of Record COMPANY By: Stephen Fogel Ron H. Moss Attorneys of Record AMARILLO RECYCLING COMPANY, INC. ALLIANCE OF XCEL MUNICIPALITIES Bv: Rick L. Russwurm Moore, Lewis, Russwunn, PC Attorney of Record By: Alfred R. Herrera Brennan Foley Herrera Law & Associates, PLLC Attorneys of Record CANADIAN RIVER MUNICIPAL WATER INTERNATIONAL BROTHERHOOD OF AUTHORITY ELECTRICAL WORKERS LOCAL UNION 602 By: R. Michael Anderson Joshua D. Katz Bickerstaff, Heath, Delgado, Acosta, LLP Attorneys of Record OFFICE OF PUBLIC UTILITY COUNSEL By: Sara J. Ferris Cassandra Quinn Christiaan Siano Attorneys of Record y: Jamie L. Mauldin Thomas L. Brocato Lloyd Gosselink Rochelle & Townsend, PC Attorneys of Record SIERRA CLUB By: Joshua Smith Matthew E. Miller James Z. Brazell Attorneys of Record SOAH Docket No. 473-17-5771 Unopposed Stipulation PUC Docket No. 47527 -16- 18 451 452 STAFF OF THE PUBLIC UTILITY SOUTHWESTERN PUBLIC SERVICE COMMISSION OF TEXAS By: Richard Nemer Hunter Burkhalter Eleanor D'Ambrosio Attorneys of Record COMPANY By: Stephen Fogel Ron I I. Moss Attorneys of Record AMARILLO RECYCLING COMPANY, INC. ALLIANCE OF XCEL MUNICIPALITIES By: Rick L. Russwurm Moore; Lewis, Russwurm, PC Attorney of Record By: Alfred R. Herrera Brennan Foley Herrera Law & Associates, PLLC Attorneys of Record CANADIAN RIVER MUNICIPAL WATER INTERNATIONAL BROTHERHOOD OF AUTHORITY ELECTRICAL WORKERS LOCAL UNION 602 By: R. Michael Anderson Joshua. D. Katz Bickerstaff, Heath, Delgado, Acosta, LLP Attorneys of Record OFFICE OF PUBLIC UTILITY COUNSEL By: Sara J. Ferris Cassandra Quinn Christiaan Siano Attorneys of Record Jami L. auldin Thon Brocato Lloyd Gosselink Rochelle & Townsend, PC Attorneys of Record SIERRA CLUB By: Joshua Smith Matthew E. Miller James Z. Brazell Attorneys of Record SOAK K Docket No. 473-17-5771 Unopposed Stipulation PUC Docket No. 47527 -J6- 19 STAFF OF THE PUBLIC UTILITY COMMISSION OF TEXAS By: Richard Nemer Hunter Burkhalter Eleanor D'Ambrosio Attorneys of Record SOUTHWESTERN PUBLIC SERVICE COMPANY By: Stephen Fogel Ron H. Moss Attorneys of Record AMARILLO RECYCLING COMPANY, INC. ALLIANCE OF XCEL MUNICIPALITIES By: Rick L. Russwurm Moore, Lewis, Russwurm, PC Attorney of Record By: Alfred R. Herrera Brennan Foley Herrera Law & Associates, PLLC Attorneys of Record CANADIAN RIVER MUNICIPAL WATER INTERNATIONAL BROTHERHOOD OF AUTHORITY ELECTRICAL WORKERS LOCAL UNION 602 By: R. Michael Anderson Joshua D. Katz Bickerstaff, Heath, Delgado, Acosta, LLP Attorneys of Record OFFICE OF PUBLIC UTILITY COUNSEL By: Sara J. Ftrris Cassandra Quinn Christiaan Siano Attorneys of Record By: Jamie L. Mauldin Thomas L. Brocato Lloyd Gosselink Rochelle & Townsend, PC Attorneys of Record SIERRA CLUB By: Joshua Smith Matthew E. Miller SOAR Docket Na 473-17-5771 PUC Docket Na 47527 -16- Unopposed Stipulation 20 453 454 STAFF OF TRE PUBLIC UTILITY SOUTHWESTERN PUBLIC SERVICE COMMISSION OF TEXAS COMPANY ,•- ") iJ By' - -- Richard Nemer Hunter Burkhalter Eleanor D'Ambrosio Attorneys of Record By: Stephen Fogel Ron }L Moss Attorneys of Record AMARILLO RECYCLING COMPANY, INC. ALLIANCE OF XCEL MUNICIPAL! CIES By:. - Rick L. Russwurm Moore, Lewis, Russwurm, PC Attorney of Record By: Alfred R. Herrera Brennan Foley Herrera Law & Associates, PLLC Attorneys of Record CANADIAN RIVER MUNICIPAL WATER INTERNATIONAL BROTHERHOOD OF AUTHORITY ELECTRICAL WORKERS LOCAL UNION 602 By: R. Michael Anderson Joshua D. Katz Bickerstaff, Heath, Delgado, Acosta, LLP Attorneys of Record OFFICE OF PUBLIC UTILITY COUNSEL By: SAW J. Ferris Cassandra Quinn Christiaan Siano Attorneys of Record SOA/( Docker No. 473-17-5771 PUC Docker No. 47527 By. -- Jamie L. Mauldin Thomas L. Brocato Lloyd Gosselin! Rochelle & Townsend, PC Attorneys of Record SIERRA CLUB By: Joshua Sa ith Matthew Miller James Z. Br. zell Attorneys of Record Unopposed S7ipuluriou 21 TEXAS COTTON GINNERS' ASSOCIATION By: Zach Br Brady ilton, LLP Attorney of Record UNITED STATES DEPARTMENT OF ENERGY TEXAS INDUSTRIAL ENERGY CONSUMERS By: Rex D. VanMiddlesworth Benjamin Hallmark James Zhu Attorneys of Record WAL-MART STORES TEXAS, LLC AND SAM'S EAST, INC. By: By: Rishi Garg Christopher M. Drake Mark A. Duffy Attorneys of Record Lisa V. Perry Oram & Houghton, PLLC Attorney of Record SON/ Docket No. 473-17-5771 PUC Docket No. 47527 -17- Unopposed Stipulation 22 455 456 TEXAS COTTON DINNERS' TEXAS INDUSTRIAL ENERGY ASSOCIATION CONSUMERS By: Zach Brady ex VanMiddlesworth Brady & Hamilton, LLP Benjamin Hallmark Attorney of Record James Zhu Attorneys of Record UNITED STATES DEPARTMENT OF WAL-MART STORES TEXAS, LLC AND ENERGY SAM'S EAST, INC. By: By: Rishi Garg Lisa V. Perry Christopher M. Drake Oram & Houghton, PLLC Mark A. Duffy Attorney of Record Attorneys of Record SOAH Docket No. 473-17-5771 PUC Docket No. 47527 -17- Unopposed Stipulation 23 TEXAS COTTON GINNERS' TEXAS INDUSTRIAL ENERGY ASSOCIATION CONSUMERS By: By: Zach Brady Rex D. VanMiddlesworth Brady & Hamilton, LLP Benjamin Hallmark Attorney of Record James Zhu Attorneys of Record UNITED STATES DEPARTMENT OF WAL-MART STORES TEXAS, LLC AND SAM'S EAST, INC, ENERGY By: Rishi Garg Christopher M. Drake Mark A. Duffy Attorneys of Record By: Lisa V. Perry Oram & Houghton, PLLC Attorney of Record SOAHDocket No. 473-17-5771 PUC Docket No. 47527 -17- Unopposed Stipulation 24 457 458 TEXAS COTTON GINNERS' TEXAS INDUSTRIAL ENERGY ASSOCIATION CONSUMERS By: Zach Brady Brady & Hamilton, LLP Attorney of Record UNITED STATES DEPARTMENT OF ENERGY By: Rishi Garg Christopher M. Drake Mark A. Duffy Attorneys of Record By: Rex D. VanMiddlesworth Benjamin Hallmark Janes Zhu Attorneys of Record WAL-MART STORES TEXAS, LLC AND SAM'S EAST, INC. By: Lisa V. Perry Oram & Houghton, PLL Attorney of Record SOAH Docket No. 473-17-5771 PUC Docket No. 47527 -17- Unopposed Stipulation 25 CERTIFICATE OF SERVICE I certify that on June 29, 2018, a true and correct copy of the foregoing instrument was served on all parties of record by electronic service, hand delivery, Federal Express, regular first class mail, certified mail, or facsimile transmissr Ron oss SOAR Docket No. 473-17-5771 Unopposed Stipulation PUC Docket No. 47527 26 26 459 460 Southwestern Public Service Company V N > C (n E z m z c 0 O L11 8 ll. Q 0 2 G a � M N E CO 0000000 0000000 0000000 m 0 m m CO CO M- 0 CO m CO I- N M l0 M CO m m 0) M 0) h N N (0 (0 v) co 10 7 (0 1- 02 r O CO 0001,70.-00 4)4)4)O)4)4) N M 10 7 m O r (O h ( t0 CO m (0 t N 7 CO M CO 0 0 e- N- et •1 M 4) fV th .- (V N fV (V (V (V r (V (V N fV N N COCO 0 O ! CO (00 N 0. O N N I� n 0 n o 7 N (0 O O -O 0 0 0 N V) 10 10 0 0 0 0 0 0 0 N N N N N N CO O N r• e-m�rn.�N. mOt CO CO a m (0) N VI CO 00 CV (o. 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(A p O E p U 4) J 44) Cm e > > mU 2 c E 0. r o U LL c O ti 0 Steam Production - Coal 13 m h ) N N 0 0 N N NW NN m 00 WW C a Docket No. 47527 Unopposed Stipulation Attachment B Page 1 of 2 DOCKET NO. 47527 STIPULATION ATTACHMENT B PENSION AND OPEB EXPENSE TRACKER BASELINE AND AMORTIZATION GOING -FORWARD PENSION AND OPEB BASELINES As of January 23, 2018, the Texas retail pension and OPEB baselines were $7,830,475 for qualified pension and $(206,017) for OPEl3. Those amounts were calculated as follows: Those baseline amounts, which are assumed to be included in the Docket No. 47527 Stipulation revenue requirement, will be compared to the actual amounts that SPS incurs for pension and OPEB expense beginning January 23, 2018. CURRENT PENSION AND OPEB TRACKER BALANCE In Docket No: 47527, SPS requested that the total net pension and OPEB deferral amount of ($1,166,775) be amortized over a one year period.3 The ($1,166,775) was made up of two parts, which are shown in the table below. The unamortized amount of $415,879 assumed the $76,730 monthly amortization agreed to in Docket No. 45524 would continue through January 17, 2018. Pension and OPEB Deferrals 12 Months Ending 6/30/17 Expenses Jurisdictional Allocation Factor2 Texas Retail Amount Pension $13,378,566 58.53% $7,830,475 OPEB $(351,985) 58.53% $(206,017) Those baseline amounts, which are assumed to be included in the Docket No. 47527 Stipulation revenue requirement, will be compared to the actual amounts that SPS incurs for pension and OPEB expense beginning January 23, 2018. CURRENT PENSION AND OPEB TRACKER BALANCE In Docket No: 47527, SPS requested that the total net pension and OPEB deferral amount of ($1,166,775) be amortized over a one year period.3 The ($1,166,775) was made up of two parts, which are shown in the table below. The unamortized amount of $415,879 assumed the $76,730 monthly amortization agreed to in Docket No. 45524 would continue through January 17, 2018. Pension and OPEB Deferrals Direct Testimony Unamortized Amount: Pension and OPEB expense deferred from prior cases $415,879 Pension and OPEB expense deferred from January I, 2016 to June 30, 2017 (1,582,654) Total Net Pension and OPEB Deferrals ($1,166,775) Assumed Docket No. 45524 amortization would continue through January 17, 2018. Under Section 2(E) of the Docket No. 47527 Stipulation, the unamortized amount will be set as of June 30, 2017 and will be amortized over a 24 -month period starting February 1, 2018. The I Source: SPS Ex.. 39A, Update Testimony of Richard R. Schrubbe at 6. 2 Source: SPS Ex. 44A, Update Testimony of Arthur P. Freitas, Attachment APF -RR -U2 at 8, line 236. 3 Source: SPS Ex. 39, Direct Testimony of Richard R. Schrubbe at 42 and 43. 30 463 464 Docket No. 47527 Unopposed Stipulation Attachment B Page 2 of 2 change from January 17, 2018.to June 30, 2017 increases the unamortized balance by $502,459, which is calculated as follows: $460,380 ($76,730 x 6 months) $ 42,079 ($76,730 x 54.84%); 17 of 31 days or 17/31=54.84% $502,459 As a result of this change, the total net pension and OPEB deferral amount is now ($664,316) and is shown in the table below. Pension and OPEB Deferrals Stipulation Unamortized Amount: Pension and OPEB expense deferred from prior cases $918,338 Pension and OPEB expense deferred from January 1, 2016 to June 30, 2017 (1,582,654) Total Net Pension and OPEB Deferrals ($664,316) Assumes Docket No. 47527 amortization continues through June 30, 2017. The ($664,316) is the amount that will be amortized over a 24 -month period starting February 1, 2018. The amortization expense is assumed to be included in the Docket No. 47527 Stipulation revenue requirement. If the entire amount has not been amortized at the time the rates set in SPS's next base rate go into effect, the Docket No. 47527 Stipulation [Section 2(E)(i)] provides that the remaining unamortized amount can be included in a subsequent base rate case and is deemed reasonable and necessary. 31 SOAR DOCKET NO. 473-17-5771 PUC DOCKET NO. 47527 APPLICATION OF SOUTHWESTERN § BEFORE THE STATE OFFICE PUBLIC SERVICE COMPANY FOR § OF AUTHORITY TO CHANGE RATES § ADMINISTRATIVE HEARINGS 465 PROPOSED ORDER This order addresses the application of Southwestern Public Service Company (SPS) for authority to change rates. An Unopposed Stipulation (agreement) resolves all of the issues among the parties in this proceeding. The application, as modified by the agreement and this Order, is granted for the reasons discussed in this Order. I. Discussion A. SPS's Application On August 21, 2017, SPS filed an application requesting authority to revise its base rates. SPS's application was filed pursuant to PURA' § 36.112, which allows for the utility's revenue requirement to be based on information submitted for a test year, updated to include information that reflects the most current actual or estimated information regarding increases or decreases to the utility's cost of service.2 In short, this provision allows for the use of an updated test year in establishing a utility's revenue requirement. Based on the use of an updated test year,3 SPS requested Commission approval of a Texas retail base rate revenue requirement of $608,816,223, representing an increase of $69,176,106 over SPS's current rates on a Texas retail basis. After SPS filed its application in this case, the Tax Cuts and Jobs Act (TCJA) was enacted into law, which raised questions regarding how the TCJA should be reflected in the rates approved in this proceeding. Consequently, SPS filed supplemental testimony addressing the effects of the TCJA on SPS's cost of service and modified certain aspects of its requested relief. ' Public Utility Regulatory Act, Tex. Util. Code Ann. §§ 11.001 — 58.032 (West 2016 & Supp. 2017), §§ 59.001 — 66.016 (West 2007 & Supp. 2017) (PURA). 2 PLJRA § 36.112(b). SPS elected to provide information submitted for a test year but updated to include estimated information for an update period, which was the three-month period from April 1, 2017 through June 30, 2017. This effectively created an updated test year consisting of the twelve-month period from July 1, 2016 through June 30, 2017. PUC Docket No. 47527 Proposed Order SO,4H Docket No. 473-17-5771 Attachment C to the Unopposed Stipulation - 1- 32 466 As modified by supplemental testimony and subsequent rebuttal testimony, SPS's requested relief in this proceeding is approval of a Texas retail base rate revenue requirement of $573,198,459, would be an increase of $32,009,475 over SPS's current level of Texas retail base rates, a 5.9% base rate increase. In conjunction with the proposed base rate increase, SPS's transmission cost recovery factor approved in Docket No. 468774 ($14,373,803) would be set to zero. B. The Settlement Agreement A settlement agreement was filed on June 26, 2018, and was signed by: Commission Staff (Staff); SPS; -International Brotherhood of Electrical Workers Local Union 602 (IBEW); Texas Industrial Energy Consumers (TIEC); Texas Cotton Ginners' Association (TCGA); Alliance of Xcel Municipalities (AXM); Office of Public Utility Counsel (OPUC); United States Department of Energy (DOE); Amarillo Recycling Co., Inc.; Wal-Mart Stores Texas, LLC, and Sam's East, Inc. (Wal-Mart); Sierra Club; and Canadian River Municipal Water Authority (CRMWA). Golden Spread Electric Cooperative, Inc. (GSEC) does not join the Stipulation but does not oppose it. The settlement resolves all of the issues related to SPS's application in this docket.5 The settlement agreement results in a change of zero dollars in SPS's net revenues by maintaining the base rates set in Docket No. 455246 and the Transmission Cost Recovery Factor (TCRF) approved in Docket No. 46877.7 The Commission concludes that SPS's application, as modified by the settlement agreement and this Order, should be granted. The Commission adopts the following findings of fact and conclusions of law: II. Findings of Fact 4 Application of Southwestern Public Service Company for Approval of Transmission Cost Recovery Factor, Docket No. 46877 Order (Jun. 29, 2017). 5 The issue of rate case expenses was severed into Docket No. 47588. The DOE's billing dispute with SPS relating to the Pantex facility was severed into Docket No. 48440. 6 Application of Southwestern Public Service Company for Authority to Change Rate, Docket No. 45524, Order (Jan. 26, 2017). Application of Southwestern Public Service Company for Approval of Transmission Cost Recovery Factor, Docket No. 46877 Order (Jun. 29, 2017). PUC Docket No. 47527 Proposed Order Attachment C to the Unopposed Stipulation SOAK Docket No. 473-17-5771 - 2- 33 Procedural History 1. SPS is an investor-owned electric utility with a retail service area located in Texas. 2. SPS serves retail and wholesale electric customers in Texas and New Mexico. The New Mexico Public Regulation Commission regulates SPS's New Mexico retail operations. The Federal Energy Regulatory Commission regulates SPS's wholesale electric operations. 3. On August 21, 2017, SPS filed an application requesting authority to change its Texas retail rates. SPS requested an overall increase in base rate revenues for the Texas retail jurisdiction of $80,949,614 per year. In conjunction with the proposed base rate increase, SPS's transmission cost recovery factor approved in Docket No. 46877 ($14,373,803) would be set to zero. SPS also requested approval of a set of proposed tariff schedules reflecting the increased rates and other revised terms. 4. SPS's requested an effective date for the new rates and tariff schedules of September 25, 2017. SPS's application stated that, under PURA8 § 36.211, if the Commission suspends the proposed rates, the final rates set in this case would relate back to January 23, 2018. 5. SPS filed its application with the Commission seeking authority to revise its base rates based upon an "Updated Test Year" of July 1, 2016 through June 30, 2017, which by the end of the case would be the product of a historical test year of April 1, 2016 through March 31, 2017 (Test Year), updated to include actual infonnation for the period from April 1, 2017 through June 30, 2017 (Update Period), as authorized by PURA § 36.112 and 16 Tex. Admin. Code (TAC) § 25.246. 6. SPS provided notice by publication for four consecutive weeks before the effective date of the proposed rate change in newspapers having general circulation in each county of SPS's Texas service territory. SPS also mailed notice of its proposed rate change to all of its customers. Additionally, SPS timely served notice of its statement of intent to change rates on all municipalities retaining original jurisdiction over its rates and services. 7. The following parties were granted intervenor status in this docket: Amarillo Recycling Co., Inc.; AXM; CRMWA; GSEC; IBEW; Nathan Porterfield; OPUC; Sierra Club; 8 PURA is codified at Tex. Util. Code Ann. §§ 11.001-58.303- (West 2016), 59.101-66.017 (West 2007 & Supp. 2016). PUC Docket No. 47527 SOAH Docket Na 473-17-5771 - 3 - Proposed Order Attachment C to the Unopposed Stipulation 34 467 468 Texas Cotton Ginners' Association; TIEC; DOE; and Wal-Mart. Staff became a party as a matter of right. 8. All of SPS's timely filed petitions for review of the rate ordinances of the municipalities exercising original jurisdiction with SPS's service territory were consolidated for determination in this proceeding. 9. On August 23, 2017, the Commission referred this case to the State Office of Administrative Hearings (SOAH). 10. On August 24, 2017, the SOAH Administrative Law Judges (ALJs) issued SOAH Order No. 1, description of application and jurisdiction, suspension of effective date, protective order, notice of prehearing conference, notice and other procedures. 11. On September 8, 2017, the SOAH ALJs issued SOAH Order No. 2, which set a procedural schedule for this docket in addition to memorializing the prehearing conference, granting motions to intervene, severing the rate case expense issues, addressing notice and sufficiency of application, and revising the effective date. Docket No. 47588, Review of the Rate Case Expenses Incurred in Docket No. 47527, was established for the severed rate case expense issues. 12. On September 29, 2017, the Commission issued its preliminary order, identifying a non - exhaustive list of 53 issues to be addressed in this proceeding. 13. On October 5, 2017, SPS filed its case update, including updated testimony to replace its estimated information for the Update Period with actual information. SPS's filing also included its 45 -day case update as required by the Commission's RFP, and reflected that rate case expenses had been severed from this docket. With this case update, SPS's requested base rate increase became $69,176,106. 14. On February 2, 2018, SPS filed a request for leave to file supplemental direct testimony addressing the effects of the TCJA and moved to adopt a proposed revised procedural schedule. 15. On February 6, 2018, the ALJs held a telephonic prehearing regarding SPS's February 2"d motion. 16. On February 8, 2018, SOAH issued Order No. 6, granting the request for leave to file supplemental direct testimony, revising the procedural schedule and extending the record PUC Docket No. 47527 Proposed Order SOAH Docket Na 473-17-5771 Attachment C to the Unopposed Stipulation -4- 35 469 close date and the jurisdictional deadline. Under the order, the record close date became July 19, 2018. 17. On February 16, 2018, SPS filed Supplemental Testimony and RFP Schedules, addressing the effects of the TCJA. With this supplemental filing, SPS's requested base rate increase became $37,495,033 million, reflecting a reduction of $31,681,073 to SPS's requested updated test year revenue requirement increase due to the effects of the TCJA. 18. On April 25, 2018, Intervenors filed direct testimony. 19. On May 2, 2018, Commission Staff filed direct testimony. 20. On May 22, 2018, Intervenors and Commission Staff filed Cross -Rebuttal Testimony. 21. On May 23, 2018, SPS filed rebuttal testimony. In that testimony, SPS reduced its requested rate increase to $32,009,475 million to incorporate the effects of the TCJA and to reflect certain corrections, adjustments, and concessions. 22. On May 30, 2018, a prehearing conference was held at which evidence for this docket was admitted. 23. On June 4, 2018, the prehearing conference and the hearing in this case were postponed until June 5, 2018 so that the parties could engage in settlement discussions. 24. On June 5, 2018, a prehearing conference was held at which parties announced an agreement in principle with regard to all remaining issues in the matter with the exception of the DOE Pantex billing dispute issues. The ALJs admitted additional evidence for this docket. The parties requested that issues relating to the DOE's Pantex billing dispute be severed from this case. 25. On June 7, 2018, the ALJs issued Order No. 12, memorializing prehearing conference, admitting evidence, severing certain DOE issues and establishing a new docket, and setting deadline to file settlement materials or a status report. Docket No. 48440, Dispute Between the US Department of Energy and Southwestern Public Service Company Concerning the Pantex Facility and Pantex Wind Farms (Severed From Docket 47527) was established for the severed DOE issues. 26. On June 29, 2018, SPS filed the agreement, which resolved all remaining issues in this proceeding. All but two parties joined the agreement. GSEC did not sign, but does not oppose the agreement. Mr. Nathan Porterfield's position on the agreement is unknown. 27. On July _, 2018 SPS and Staff presented testimony in support of the agreement. PUC Docket No. 47527 Proposed Order SOAH Docket No 473-17-5771 Attachment C to the Unopposed Stipulation - 5- 36 470 28. On July , 2018, SPS filed an unopposed motion to admit evidence to support the agreement and to remand the case to the Commission. 29. On July , 2018, the ALJs issued SOAR Order No. 13 admitting evidence to support the agreement, remanding the case to the Commission, and dismissing the SOAH docket. Description of the Agreement 30. The Signatories submitted the agreement to the Commission as representing a just and reasonable disposition of the issues related to this docket consistent with the public interest. The agreement is a black box settlement for all revenue requirements issues concerning Texas retail rates except for specifications detailed in the agreement concerning: Depreciation Expense; Financial Items; the TCJA; Capital Additions; the Pension and Other Post -Employment Benefit (OPEB) Expense Tracker; and Margins on Off -System Energy Sales. Revenue Requirement, Base Rates and the TCRF 31. There is a change of zero dollars in SPS's net revenues by maintaining the base rates set in Docket No. 455249 and the TCRF approved in Docket No. 46877.10 32. SPS is allowed to recoup the TCRF rider revenue it would have billed (revenue to be recouped) had it not ceased billing the TCRF rider for usage during the period January 23, 2018 through June 10, 2018 (recoupment period). SPS will determine the revenue to be recouped by rebilling customer usage for the recoupment period. By November 30, 2018, SPS will file an application requesting approval of the specific TCRF recoupment rider charges. 33. In calculating the revenue to be recouped, SPS will include the revenue that would have been billed to all service schedules subject to the TCRF established in Docket No. 46877, but the TCRF recoupment rider will be designed so that certain service schedules (exempt service schedules) will be charged zero dollars under the TCRF recoupment rider and the revenue that would have been recouped from the exempt service schedules 9 Application of Southwestern Public Service Company for Authority 10 Change Rate, Docket No. 45524, Order (Jan. 26, 2017). 1 D Application of Southwestern Public Service Company for Approval of Transmission Cost Recovery Factor, Docket No. 46877, Order (Jun. 29, 2017). PUC Docket No. 47527 Proposed Order SOAH Docket No. 473-17-5771 Attacltntent C to the Unopposed Stipulation - 6- 37 471 will instead be collected from the other service schedules that are subject to the TCRF established in Docket No. 46877 (paying service schedules). The paying service schedules will be responsible for the revenue that otherwise would be recouped from the exempt service schedules on an equal percentage base rate (including TCRF) basis using Updated Test Year billing determinants. The exempt service schedules are: Secondary General Service; Primary General Service; Large School; and Small Municipal and School Service. Depreciation Expense 34. There will be no change in SPS's existing Commission -approved depreciation rates, except in relation to the Tolk Generating Station Units 1 and 2. 35. The depreciation rates for Tolk Generation Station Units 1 and 2 attached to the agreement are effective as of January 23, 2018. 36. SPS agreed to update its Tolk Station economic life analysis and include it in SPS's next Texas retail base rate case application. Financial Items 37. For Allowance for Funds Used During Construction purposes only, SPS will use a 9.5% Return on Equity in conjunction with using its actual capital structure per the instructions in the Uniform System of Accounts. Tax Cuts and Jobs Act 38. SPS's Application as modified by the agreement and this Order incorporates the full effects of the TCJA. The relate -back date in this rate case is January 23, 2018, which is two days before the Commission issued its order in Project No. 47945, Proceeding to Investigate and Address the Effects of the Tax Cuts and Jobs Act of 2017 on the Rates of Texas Investor -Owned Utility Companies. a. With regard to the reduction in the corporate federal income tax rate from 35% to 21% and the corresponding change to SPS's income tax expense: i. The evidence presented in SPS's rebuttal cost of service and Staff's cost of service in its direct case calculated SPS's federal income tax expense using the 21% tax rate. SPS's and Staff's testimony in support of the agreement further provides evidence of the incorporation of the 21% PUC Docket No. 47527 Proposed Order SOAH Docket No. 473-17-5771 Attachment C to the Unopposed Stipulation 7- 38 472 reduction in the corporate federal income tax rate and the corresponding change to SPS's income tax expense. ii. The disposition of the regulatory liability the Commission directed SPS to establish in Project No. 47945 regarding the reduction in the corporate tax rate is resolved through the base rates established in this case pursuant to the settlement. SPS has no refund or bill credit obligation regarding that regulatory liability. b. With regard to the excess Accumulated Deferred Federal Income Taxes (ADFIT) and Net Operating Loss (NOL) -related balances resulting from the TCJA: The evidence presented in SPS's rebuttal cost of service and Staff's cost of service in its direct case reflected amortizations of excess ADFIT balances for protected and unprotected plant items, excess ADFIT balances for non - plant items, and excess NOL -related balances resulting from the TCJA as restated for the June 30, 2017 Updated Test Year. This is further supported by SPS's testimony in support of stipulation. ii. SPS acknowledges that it is obligated to continue to unwind its excess ADFIT and NOL -related balances resulting from the change in tax rates under the TCJA, and that continued unwinding will be reflected in the calculation of SPS's cost of service in future base rate cases along with the calculation of all other components of the cost of service. iii. For the Updated Test Year ending June 30, 2017, the disposition of the regulatory liability the Commission directed SPS to establish in Project No. 47945 regarding the excess ADFIT and NOL -related balances is resolved through the rates established under this Order and SPS's obligation to continue unwinding those balances in future rate cases. iv. In future rate cases, SPS will continue to unwind the excess ADFIT balances associated with protected plant items based on the Average Rate Assumption Method (ARAM), which is the amortization period SPS used to calculate the unwinding of this category of excess ADFIT in its rebuttal PUC Docket No. 47527 Proposed Order SOAR Docket No. 473-17-5771 Attachment C to the Unopposed Stipulation - 8- 39 473 cost of service, and which Staff also used in its cost of service. v. In its rebuttal cost of service, SPS unwound the excess ADFIT balances associated with unprotected plant items based on the ARAM. The parties retain the right to address the appropriate amortization of the remaining balances of ADFIT for unprotected plant items in SPS's next rate case. vi. In future rate cases, SPS will continue to unwind the excess ADFIT balances associated with non -plant items using a five-year amortization period, which is the amortization period SPS used to calculate the unwinding of this category of excess ADFIT in its rebuttal cost of service. vii. In future rate cases, SPS will continue to unwind the excess NOL -related balances over a 44 -year period, the average ARAM period, which is the amortization period SPS used to calculate the unwinding of the excess NOL -related balances in its rebuttal cost of service, and which Staff also used in its cost of service. viii. In future rate cases, SPS will address its excess ADFIT balances, and the unwinding of those balances, associated with protected and unprotected plant items, non -plant items, and NOL -related balances that may have accrued from the end of the Updated Test Year in this case (June 30, 2017) through December 31, 2017. Capital Additions 39. The capital additions that SPS closed to plant in service during the period of January 1, 2016 through June 30, 2017 that are included in SPS's Updated Test Year rate base are reasonable and necessary. Pension and OPEB Expense Tracker 40. The pension and OPEB expense tracker balance as of June 30, 2017, set forth in Attachment B to the agreement, will be amortized over a 24 -month period starting February I, 2018. Any remaining unamortized amounts can be included in a subsequent base rate case filing and are deemed reasonable and necessary. PUC Docket No. 47527 Proposed Order SOAHDocket No. 473-17-5771 Attachment Cto the Unopposed Stipulation - 9- 40 474 41. The baseline for the pension and OPEB expense tracker as of July 1, 2017 is set forth in Attachment B to the agreement. Margins on Off -System Energy Sales 42. SPS has agreed that for calculating eligible fuel expense from the date of the Order in this case going forward until the earlier of the date of the final order in SPS's next fuel reconciliation date or the relate -back date in SPS's next base rate case, SPS will credit Texas retail customers with 100% of the Texas retail margins on generation book off - system energy sales. Demand and Enemy Loss Factors 43. SPS's line loss study presented in this case is approved and the resulting demand and energy Toss factors are approved. The effective date of the new demand and energy loss factors is February 1, 2018. Rate Case Expenses 44. The base rates approved in this Order do not include rate case expenses, which will be addressed in Commission Docket No. 47588. SPS has agreed to cap its request for rate case expenses associated with Docket No. 47527 to $1.45 million related to SPS's rate case expenses and AXM's rate case expenses and will nonetheless reimburse AXM's rate case expenses. The cap in Docket No. 47588 applies only to rate case expenses associated with Docket No. 47527 and does not apply to SPS's request for the rate case expenses, including AXM's, for Docket Nos. 46025 (fuel reconciliation) and 46877 (TCRF). Timing ofNext Rate Case 45. SPS has confirmed it will file its next base rate case no later than December 31, 2019. TCRF, Distribution Cost Recovery Factor (DCRF), and Purchased Power Cost Recovery Factor (PCRF) Filings 46. SPS has agreed to not file for a TCRF, DCRF, or PCRF until after the Commission issues its final order in the next SPS rate case. Renewable Enemy Credits (RECs) 47. Bundled Texas -generated RECs will be priced at $0.27 starting on June 1, 2018. PUC Docket No. 47527 Proposed Order SOAH Docket No. 473-17-5771 Attachment C to the Unopposed Stipulation - 10- 41 475 48. The Texas Commission will establish the value for Texas -generated bundled RECs and the New Mexico Public Regulation Commission will establish the value for New Mexico -generated bundled RECs. Transition Plan to Eliminate the Residential Space Heatinz (RSH) Rate 49. Under the agreement SPS has agreed to propose a Residential Service (RS) rate design in its next base rate case that eliminates the RSH Rider consistent with the RS rate design proposed in this rate case. The new rate design for the Residential class will be designed to moderate the effect on RSH customers of eliminating the RSH option. The new rate design is intended to be revised or eliminated in future rate proceedings as the need to moderate the effect of the elimination of the RSH Rider on RSH customers diminishes. SPS agreed to make available upon request cost and billing determinant information necessary to calculate RS rates based on initial consumption band alternatives of 400 kilowatt-hours (kWh), 500 kWh, 600 kWh, 700 kWh, 800 kWh, 900 kWh, 1,000 kWh, 1,100 kWh, and 1,200 kWh. 50. If, as in Docket No. 45524, further mitigation of rate impacts for RSH customers is deemed necessary, SPS may propose a temporary rider designed to provide a credit per kWh to all Residential customers for above-average residential consumption during the winter months as defined in the current RS rate tariff (billing months of October through May), to be phased out over a period of time. The cost of the credit will be recovered through an increase to the RS energy charge throughout the year, with the increase to be phased out concurrent with the phase-out of the credit and the phase-out of the RSH rider, in a manner designed to be revenue -neutral for SPS. The temporary rider will end at the conclusion of the summer months as defined in the current RS rate tariff (billing months of June through September) in the year after the effective date of the new rates set in SPS's next base rate case, unless SPS, Staff, and OPUC jointly recommend a different ending date and the Commission approves that date. Rate changes under the temporary rider and the elimination of the rider shall not occur during the winter months (as defined in the current RS rate tariff). The target end date for the temporary rider is the end of the summer period concluding September 30, 2020. PUC Docket No. 47527 Proposed Order SOAH Docket No, 473-!7-5771 Attachment C to the Unopposed Stipulation - 11- 42 476 51. SPS agrees to continue to implement the plan to eliminate the RSH Rider developed in cooperation with Staff and OPUC. SPS agrees to implement the plans prior to the conclusion of its next base rate case. 52. Beginning with SPS's next base rate case, any cap on the number of customers joining the residential time -of -use (TOU) rate plans will not include a limit on RSH customers seeking to participate in the TOU rate plans. Abandonment of Appeal of Docket No. 43695 53. SPS has abandoned its appeal from Docket No. 43695. Cash Working Capital for Earnings Monitoring Reports 54. For preparation of SPS's Earnings Monitoring Reports for reporting years 2018 and 2019, SPS's total company Cash Working Capital is $-16,753,708 and SPS's Texas retail amount is $-9,134,277. Classes for SPS Energy Efficiency Cost Recovery Factor (EECRF) Filings 55. For all SPS EECRF cases filed before the final order in SPS's next base rate case becomes final, as defined under Tex. Govt. Code § 2001.144, the classes approved in Docket No. 4591611 will: (a) continue to be the classes for purposes of SPS's EECRF cases; and (b) be considered the rate classes in SPS's "most recent base -rate proceeding" under 16 TAC § 25.181(c)(49). Those classes are: Residential Service; Small General Service; Secondary General Service; Primary General Service; Small Municipal and School Service; Large Municipal Service; and Large School Service. 11 Application of Southwestern Public Service Company to Adjust Its Energy Efficiency Cost Recovery Factor, Docket No. 45916, Order at Finding of Fact No. 23 (Sept. 23, 2016). PUC Docket No. 47527 Proposed Order SOAR Docket No. 473-17-5771 Attachment Cto the Unopposed Stipulation - 12- 43 477 Solar PPAs 54. SPS's request that the Commission find that SPS was prudent to enter into the purchased power agreements with NextEra Energy Resources Acquisition, LLC for the Roswell Solar and Chaves County Solar facilities (collectively, Solar PPAs) should be deferred to SPS's next fuel reconciliation. III. Conclusions of Law 1. SPS is a public utility as that term is defined in PURA § 11.004(1) and an electric utility as that term is defined in PURA § 31.002(6). 2. The Commission exercises regulatory authority over SPS and over the subject matter of this application under PURA §§ 14.001, 32.001, 36.001-36.112, and 36.211, and under 16 Tex. Admin. Code (TAC) § 25.231. 3. The Commission has jurisdiction over an appeal from municipalities' rate proceedings under PURA § 33.051. 4. SOAH exercised jurisdiction over this proceeding under PURA § 14.053 and Tex. Gov't Ann. § 2003.049.12 5. This docket was processed in accordance with the requirements of PURA, the Texas Administrative Procedure Act, and Commission rules.13 6. SPS provided adequate notice of its application in compliance with PURA § 36.103 and 16 TAC § 22.51. 7. This docket contains no remaining contested issues of fact or law. 8. The agreement, taken as a whole, is a just and reasonable resolution of all the issues it addresses, results in just and reasonable rates, terms, and conditions, is supported by a preponderance of the credible evidence in the record, is consistent with the relevant provisions of PURA, and is consistent with the public interest. 9. SPS's rates resulting from the agreement are just and reasonable and meet the requirements of PURA § 36.003. 10. This application may be approved without a hearing under the Administrative Procedure Act and Commission rules. 12 Tex, Gov't Code Ann. § 2003.049 (West 2016). 13 Tex. Gov't Code Ann. § 2001.001-.902 (West 2016 & Supp. 2017) (APA). PUC Docket No. 47527 Proposed Order SOAH Docket 14o. 473-17-5771 Attachment Cto the Unopposed Stipulation - I3- 44 478 11. The requirements for informal disposition under 16 TAC § 22.35 have been met in this proceeding. IV. Ordering Paragraphs In accordance with these findings of fact and conclusions of law, the Commission issues the following orders: 1. The Commission approves SPS's application, as modified by the agreement and this Order. 2. Consistent with the agreement and this Order, the rates, terms and conditions described in this Order are approved. 3. SPS is authorized to file an application to implement the TCRF recoupment rider to recoup the revenue it would have billed for usage during the period January 23, 2018 through June 10, 2018. 4. The depreciation rates for the Tolk Generating Units 1 and 2 that are attached to the agreement are approved and are effective as of January 23, 2018. 5. SPS has no refund or bill credit obligation for the regulatory liability the Commission directed SPS to establish in Project No. 47945 regarding the reduction in the corporate tax rate. 6. SPS shall continue to unwind its excess ADFIT and NOL -related balances resulting from the change in tax rates under the TCJA as set out in finding of fact 38b. Parties retain the right to address the appropriate amortization period of the remaining ADFIT balances for unprotected plant items in SPS's next rate case. 7. SPS's line loss study presented in this case is approved and the resulting demand and energy loss factors are approved. The effective date of the new demand and energy Loss factors is February 1, 2018. 8. SPS shall comply with each provision of the agreement. 9. Entry of this Order does not indicate the Commission's endorsement or approval of any principle or methodology that may underlie the agreement. Entry of this Order consistent with the agreement shall not be regarded as binding holding or precedent as to the appropriateness of any principle or methodology underlying the agreement. PUC Docket No. 47527 Proposed Order SOAH Docket No. 473-17-5771 Attachment C to the Unopposed Stipulation - 14- 45 479 10. All other motions, and any other requests for general or specific relief, if not expressly granted, are denied. Signed at Austin, Texas the day of 2018. PUBLIC UTILITY COMMISSION OF TEXAS DEANN T. WALKER, CHAIRMAN ARTHUR C. D'ANDREA, COMMISSIONER SHELLY BOTKIN, COMMISSIONER PUC Docket No. 47527 Proposed Order SOAH Docket No. 473-17-5771 Attachment C to the Unopposed Stipulation -15- 46