HomeMy WebLinkAboutR20-463MOVA
RESOLUTION :NO. R20-463
A RESOLUTION BY THE CITY OF PLAINVIEW, TEXAS ("CITY")
DENYING SOUTHWESTERN PUBLIC SERVICE COMPANY'S
REQUEST TO INCREASE RATES IN CONNECTION WITH ITS
STATEMENT OF INTENT SUBMITTED ON -ABOUT AUGUST :83
2019; DIRECTING SPS TO REIMBURSE THE CITY'S: RATE CASE
EXPENSES; FINDING THAT THE MEETING COMPLIES WITH,
THE OPEN MEETINGS ACT;: MAKING OTHER FINDINGS AND
PROVISIONS RELATED TO THE SUBJECT
WHEREAS., on August 8, 2.01.9, Southwestern Public Service Company
("SPS" or the "Company") filed a Statement of Intent with the City to increase its
base revenues; and:
WHEREAS, SPS proposed to implement its proposed :increase in rates
effective on September 12, 2019; and
WHEREAS, on September 20, 2019,. SPS updated its Statement of Intent
to increase rates; and
WHEREAS, the City has -previously suspended implementation of SPS's
proposed increase in rates and its proposed effective -date by 135 days to January
25, 2020, and:
WHEREAS, SPS's proposed increase in rates as updated would, if
approved, result in an increase to its base revenues of approximately $136.5
million, which equates to. an increase of approximately 24.4% in base :revenue;
and
WHEREAS, SPS failed to establish that its overall revenue request resulted
in an amount that will permit, SPS a reasonable- opportunity to earn no more than
a.reasonable return on:the its invested capital used and useful in providing service
to the public in excess of its reasonable and :necessary operating. expenses; and
WHEREAS., SPS failed to establish that its proposed rates were: just .and
reasonable;: and
1of3
2.019 SPS Rate Application
Filed on Aug. 8, 2019 and as
Updated on -Sept. '20, '2019
Denial Resolution
1
293.
WHEREAS, the City is a regulatory authority and under Chapter 33,
§33.001 etseq. of the Public Utility Regulatory Act ("PURA"), the -city has exclusive
original jurisdiction over SPS's :rates, operations, .and services within the
municipality;; and
WHEREAS, SPS may exercise its statutory right to appeal a City decision
regarding SPS's :request to increase rates to the Public Utility Commission of
Texas ("PUC");
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIUCOMMISSION
FOR THE CITY -OF PLAINVIEW, TEXAS THAT:
Section 1. SPS failed to show -that its proposed rates are just and reasonable.
Section 2. The City '.hereby DENIES SPS's request to increase rates and finds
that:
a) The Statement of Intent fails to provide sufficient information to justify the
requested increase: in revenue or to justify the changes set forth in the
attached tariffs;
b) The Statement of Intent fails to provide sufficient information to justify the
adoption of.the rate base, expenses,. investment, .return on equity, and other
rate issues..
Section 3. SPS shall reimburse :the City on a monthly basis, through AXIVI'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 4. The City Secretary or other appropriate city official shall provide a
copy of this :Resolution to- Mr. Alfred R. Herrera, Herrera Law & Associates,.
2Of3
2019 SPS Rate Application
Filed on Aug. 8, 2019 and as
Updated on Sept. 20, 2019
Denial Resolution
294
PLLC, P.O. Box 302799, Austin, Texas 78703, and as a courtesy, provide SPS
a copy of. this Resolution by sending a copy of the Resolution. to William A.
Grant, Regional Vice President, Regulatory and Strategic Planning,
Southwestern Public Service Company, 790 S. Buchanan St., Amarillo, Texas
79101.
Section 5. 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 6. To the extent, any Resolution previously adopted by the City Council
is inconsistent with this Resolution, it is.hereby superseded.
Section 7. The findings set out in the preamble are in all things hereby
approved.
Section 8. This Resolution shall become effective from: and after its passage.
PASSED AND APPROVED this.28th day of January, 2020.
ATTEST:
Belinda Hinojosa, City Segetary
3 of 3
Wendell Dunlap, Mayor
2619 SPS Rate Application
Filed on Aug. 8, 2019 and as
Updated on Sept. 20, 2019
Denial Resolution
1
1
1