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RESOLUTION NO. R08-187
A RESOLUTION BY THE CITY OF PLAINVIEW, TEXAS ("CITY")
APPROVING SOUTHWESTERN PUBLIC SERVICE COMPANY'S
("SPS") PROPOSED TARIFF SHEETS RELATED TO CERTAIN
INTERRUPTIBLE-SERVICE TARIFFS FILED ON OR ABOUT
MAY 13, 2008; EXPRESSLY DECLINING TO APPROVE SPS'
METHODOLOGY FOR CALCULATING CERTAIN CREDITS AND
AVOIDED COSTS; EXPRESSLY RESERVING TO THE CITY THE
RIGHT TO REVIEW IN SPS' NEXT GENERAL RATE CASE THE
METHODOLOGY UNDERLYING CERTAIN CREDITS AND
AVOIDED COSTS; REQUIRING THE REIMBURSEMENT OF
EXPENSES ASSOCIATED WITH THE REVIEW OF SPS'
TARIFFS; DETERMINING THAT THE MEETING AT WHICH THIS
RESOLUTION WAS PASSED COMPLIED WITH THE TEXAS
OPEN MEETINGS ACT; MAKING SUCH OTHER FINDINGS AND
PROVISIONS RELATED TO THE SUBJECT; AND DECLARING
AN EFFECTIVE DATE.
WHEREAS, Southwestern Public Service Company ("SPS") timely notified the
City of SPS' intention to be revise its tariffs to provide interruptible service to certain
customers; and
WHEREAS, SPS did in fact on or about May 13, 2008 file its Application of
Southwestern Public Service Company for Authority to: (7) Revise its Interruptible Credit
Option Tariff; (2) Implement a New Saver's Switch Tariff,• and (3) Related Relief
(hereinafter referred to as SPS' "Interruptible Service Tariffs"); and
WHEREAS, SPS proposed an effective date of June 17, 2008, for its proposed
Interruptible Service Tariffs; and
WHEREAS, the City pursuant to its authority granted local regulatory authorities
under Chapters 33 and 36 of the Public Utility Regulatory Act as well as other provisions
of the Act, has original jurisdiction over SPS' rates, operations, and services within the
municipality, including the authority to review SPS' proposed Interruptible Service Tariffs
for reasonableness; and
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WHEREAS, a coalition of cities known as the Alliance of Xcel Municipalities
("AXM") has been organized to review the reasonableness of rates and services
provided by SPS, a subsidiary of Xcel Energy, and the City in the past has participated
in the AXM and hereby continues its participation in the AXM; and
WHEREAS, SPS' rate request consists of a material amount of documentation,
including testimony, exhibits, schedules and proposed tariffs, all of a highly complex
nature; and
WHEREAS, it is not possible for the City to complete its review of SPS' filing
within 35 days; and
WHEREAS, SPS seeks approval not only of its proposed rates, but also of its
proposed methodology used to calculate certain credits attendant to its Interruptible
Service Tariffs, including calculation of SPS' avoided costs upon which such credits are
based, each of which constitutes a complex undertaking; and
WHEREAS, the City is nonetheless desirous of facilitating implementation of
reasonable means that may forestall the need to build and/or purchase additional
generating capacity and allow its citizens the opportunity to subscribe to the optional
services proposed by SPS; and
WHEREAS, SPS' application notes that SPS will not implement its Interruptible
Service Tariffs until late 2008 or early 2009; and
WHEREAS, the City will need a reasonable amount of time before it is ready to
approve the methodology underlying calculation of the credits in SPS' Interruptible
Service Tariffs and the methodology SPS used to calculate its avoided costs underlying
such credits; and
WHEREAS, a thorough review of the methodology used to calculate certain
credits attendant to its Interruptible Service Tariffs, including calculation of SPS' avoided
costs upon which such credits are based, is better accomplished in a general rate case
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where all of the company's operations, services, rates, customer classifications, rate
design, expenses and revenues are subject to review;
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 approved and
incorporated herein as if fully set forth.
Section 2. SPS' proposed tariff sheets for its revised "Interruptible Credit
Option" Tariff; its "Residential Controlled Air Conditioning and Water Heater Ridel"
tariff; and its "Commercial and Industrial Controlled Air Conditioning Ridel" tariff are
hereby approved with an effective date of June 17, 2008.
Section 3. The City hereby expressly declines to approve the methodology by
which SPS calculated the credits and the avoided cost underlying the credits to be
issued under its proposed tariffs.
Section 4. The City's approval of SPS' tariff sheets for its revised "Interruptible
Credit Option" Tariff; its "Residential Controlled Air Conditioning and Water Heater
Rider" tariff; and its "Commercial and Industrial Controlled Air Conditioning Rider" tariff,
is granted subject to the City's express reservation of the right to review in SPS' next
general rate case (which is expected to be filed on or about June 6, 2008), the
methodology underlying the credits and SPS' calculation of its avoided costs.
Section 5. SPS' proposed form of notice and its proposed notice procedure is
hereby approved.
Section 6. The City is a participant in a coalition of cities known as the Alliance
of Xcel Municipalities ("AXM").
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Section 7. SPS shall reimburse within 30 days after submission the City's
reasonable costs associated with the City's activities related to this rate review or to
related proceedings involving SPS before the City, the Public Utility Commission of
Texas, or any court of law.
Section 8. Subject to the right to terminate employment at any time, the City
authorizes the law firm of Herrera & Boyle, PLLC to act as special counsel with regard
to rate proceedings involving SPS before the City, the Public Utility Commission of
Texas, or any court of law.
Section 9. A copy of this resolution shall be sent to Mr. James Bagley,
Director, Regulatory Administration, Xcel Energy, 600 S. Tyler, Suite 2400, Amarillo,
Texas 79101, and to Mr. Marcus Norris, City Attorney, City of Amarillo, P.O. Box 1971,
Amarillo, Texas 79105-1971
Section 10. 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 11. This resolution shall become effective from and after its passage.
PASSED AND APPROVED this 10th day of June~`2~08.
YOR
ATTE T:
CITY SECRETARY
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