HomeMy WebLinkAboutR23-612364
RESOLUTION NO. R23-612
A RESOLUTION BY THE CITY OF PLAINVIEW, TEXAS ("CITY")
DENYING SOUTHWESTERN PUBLIC SERVICE COMPANY'S
PROPOSED RATE INCREASE REQUEST IN CONNECTION WITH
ITS STATEMENT OF INTENT SUBMITTED ON ABOUT
FEBRUARY 8, 2023; 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
WHEREAS, Southwestern Public Service Company ("SPS" or the
"Company") filed a Statement of Intent with the City and with the Public Utility
Commission of Texas ("PUCT") on or about February 8, 2023, to increase its base
revenues for its Texas retail service area by approximately $148.5 million, which
is an increase in base revenue of about 20.6%; and
WHEREAS, on about March 24, 2023, SPS updated its application to revise
data it initially presented as estimates of expenses and capital expenditures, to
actual data, which had the effect of amending its proposed increase in rates to an
increase of about $158 million; and
WHEREAS, the City previously suspended implementation of SPS's
proposed increase in rates and its proposed effective date by 135 days to July 28,
2023; and
WHEREAS, by agreement between AXM and SPS, SPS extended the
suspension period to August 25, 2023; 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's rates, operations, and services within the
municipality; and
WHEREAS, under PURA § 33.025(a), the City has standing in each case
before the Public Utility Commission of Texas that relates to an electric utility
providing service in the City; and
WHEREAS, SPS failed to establish that its overall revenue request resulted
in no more than an amount that will permit SPS a reasonable opportunity to earn
a reasonable return on the utility's invested capital used and useful in providing
service to the public in excess of the utility's reasonable and necessary operating
expenses; and
1 of 3
2023 SPS Rate Application
Filed on or About Feb. 8, 2023
Denial Resolution
365
1
WHEREAS, SPS failed to establish that its proposed rates are just and
reasonable; 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;
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL FOR THE CITY
OF PLAINVIEW, TEXAS THAT:
Section 1. The findings set out in the preamble are in all things hereby
approved.
Section 2. SPS failed to show that its proposed rates are just and
reasonable.
Section 3. The City hereby DENIES SPS's request to increase rates and
in support thereof finds that:
a) SPS's Statement of Intent fails to provide sufficient justification for its
requested increase in revenue or the changes set forth in SPS's
proposed tariffs;
b) SPS's 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 4. SPS is hereby directed to continue to reimburse the City on a
monthly basis, through AXM's coordinating city, the City of Amarillo, Texas, rate -
case expenses for the reasonable costs of attorneys and consultants and
expenses related thereto, upon the presentation of invoices reviewed by the City
of Amarillo.
Section 5. The City Secretary or other appropriate city official shall
provide a copy of this Resolution to Mr. Alfred R. Herrera, Herrera Law &
Associates, PLLC, 4400 Medical Pkwy, Austin, Texas 78756, and as a courtesy,
provide SPS a copy of this Resolution by sending a copy of the Resolution to Ms.
Brooke Trammel, Regional Vice President, Regulatory & Pricing, Southwestern
Public Service Company, 790 S. Buchanan St. Amarillo, Texas 79101.
Section 6. 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.
2of3
2023 SPS Rate Application
Filed on or About Feb. 8, 2023
Denial Resolution
366
Section 7. To the extent any Resolution previously adopted by the City
Council is inconsistent with this Resolution, it is hereby superseded.
Section 8. The findings set out in the preamble are in all things hereby
approved.
Section 9. This Resolution shall become effective from and after its
passage.
PASSED AND APPROVED this 3�d day of Augu-*^'"
ATTEST:
at j k'�
elinda Hinojosa, ity ecretary
3of3
2023 SPS Rate Application
Filed on or About Feb. 8, 2023
Denial Resolution
1
1
1