HomeMy WebLinkAboutR08-188236
RESOLUTION NO. R08-188
A RESOLUTION BY THE CITY OF PLAINVIEW, TEXAS ("CITY")
SUSPENDING THE EFFECTIVE DATE FOR NINETY DAYS IN
CONNECTION WITH THE RATE INCREASE FILING OF
SOUTHWESTERN PUBLIC SERVICE COMPANY ON JUNE 12, 2008;
APPROVAL OF CERTAIN INTERIM RATES; AUTHORIZING THE CITY
TO JOIN WITH OTHER CITIES IN THE ALLIANCE OF XCEL
MUNICIPALITIES ("AXM") TO DIRECT THE ACTIVITIES OF LAWYERS
AND CONSULTANTS; AUTHORIZING THE HIRING OF ATTORNEYS
AND CONSULTANTS; 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; AND DECLARING AN EFFECTIVE DATE
WHEREAS, on or about June 12, 2008, Southwestern Public Service Company
("SPS"), awholly-owned subsidiary of Xcel Energy, Inc. (Xcel) filed a Statement of
Intent with the City of Plainview, Texas ("City") to increase its systemwide, annual
revenue requirement, by approximately $84.2 million; and
WHEREAS, SPS' application with the City includes a request to reconcile its fuel
expenses for the calendar years 2006 and 2007 to recover an additional $50.6 million
previously under-recovered through its fuel factor during calendar years 2006 and 2007;
and
WHEREAS, SPS' application for a rate increase includes a request for approval
of interim rates associated with its purchased-power agreement (PPA) with the Lea
Power Partners (LPP) generating facility; 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; and
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Resolution Joining in the AXM Coalition,
Suspending SPS' Proposed Effective Date, and
Approving SPS' Request for Interim Base Rate Relief -
SPS'June 12, 2008 Rate Case
237
WHEREAS, a coalition of cities known as Alliance of Xcel Municipalities ("AXM")
has been organized to review the reasonableness of rates and services in SPS' service
territory in Texas; and
WHEREAS, the City has participated as a member of the AXM in prior
ratemaking proceedings involving SPS; and
WHEREAS, the City benefits from the expertise and the efficiencies of AXM in
reviewing the reasonableness of SPS' rates, operations, and services; and
WHEREAS, under PURR § 33.022 SPS is required to reimburse the reasonable
rate case expenses of the AXM cities; and
WHEREAS, the rate request of SPS, which was filed on June 12, 2008, consists
of a voluminous amount of pages of testimony, exhibits, schedules and workpapers;
and
WHEREAS, it is not possible for the City to complete its review of SPS'
Statement of Intent and supporting documentation within 35 days; and
WHEREAS, pursuant to the terms of the settlement reached in SPS' most recent
rate case SPS' was permitted to seek recovery of a portion of its costs associated with
its purchases of power from the Lea Power Partners power plant in the form of a
request for interim rate relief in the amount of approximately $1.5 million per month
commencing with the commercial operation date of the Lea Power Partners power
plant; and
WHEREAS, any interim base-rate relief related to the Lea Power Partners power
plant is subject to refund in the event the Lea Power Partners power plant does not
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Resolution Joining in the AXM Coalition,
Suspending SPS' Proposed Effective Date, and
Approving SPS' Request for Interim Base Rate Relief -
SPS'June 12, 2008 Rate Case
238
achieve certain operating standards, or in the event its costs are less than is recovered
through interim rates; and
WHEREAS, SPS as part of its request for interim rate relief proposes to reduce
its fuel charges via a credit of approximately $1.955 million per month for a net savings
to ratepayers of approximately $455,000 per month;
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL/COMMISSION
FOR THE CITY OF PLAINVIEW, TEXAS, THAT:
Section 1. The findings set out in the preamble are in all things hereby
approved.
Section 2. The effective date for SPS' filing of June 12, 2008 for its rate
request is hereby suspended for an additional ninety days or at least until October 15,
2008.
Section 3. SPS' request for interim base-rate relief associated with a portion of
its costs. related to its purchases of power from the Lea Power Partners power plant is
hereby approved, provided however, that:
a. Such interim rate relief is not implemented until the date that the
Lea Power Partners power plant is in commercial operation;
b. SPS demonstrates that it is actually making payments in
accordance with its purchased power agreement for such power;
c. The Lea Power Partners power plant is operating in accordance
with the operating standards set forth in the Unanimous Stipulation entered into
in Docket No. 32766, SPS' most recently concluded general rate case; and
d. Such interim base-rate relief is subject to refund in accordance with
the provisions of the Unanimous Stipulation entered into in Docket No. 32766,
SPS' most recently concluded general rate case.
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Resolution Joining in the AXMCoalition,
Suspending SPS' Proposed Effective Date, and
Approving SPS' Request for Interim Base Rate Relief -
SPS'June 12, 2008 Rate Case
239
Section 4. The statutory timeline may be further extended if SPS does not
provide timely and meaningful public notice of its request to increase rates or if its rate-
filing package is materially deficient.
Section 5. The City shall participate with other cities in the aforementioned
proceedings as part of a coalition of cities known as the Alliance of Xcel Municipalities
("AXM") and AXM shall select the experts to work with special counsel.
Section 6. SPS shall reimburse within 30 days after submission, the City's
reasonable monthly costs associated with the City's activities related to the rate review
or in related proceedings.
Section 7. 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 8. 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 9. 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 10. This resolution shall become effective from and after its passage.
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Resolution Joining in the AXM Coalition,
Suspending SPS' Proposed Effective Date, and
Approving SPS' Request for Interim Base Rate Relief -
SPS'June 12, 2008 Rate Case
240
PASSED AND APPROVED this 24th day
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Resolution Joining in the AXM Coalition,
Suspending SPS' Proposed Effective Date, and
Approving SPS' Request for Interim Base Rate Relief -
SPS'June 12, 2008 Rate Case