HomeMy WebLinkAboutR21-506161
RESOLUTION NO. R21-506
RESOLUTION BY THE CITY OF PLAINVIEW, TEXAS ("CITY")
APPROVING THE SURCHARGE RELATED TO DOCKET NO. 49831
SUBMITTED BY SOUTHWESTERN PUBLIC SERVICE COMPANY ON
ABOUT DECEMBER 18, 2020; AUTHORIZING PARTICIPATION IN A
COALITION OF SIMILARLY SITUATED CITIES KNOWN AS THE
ALLIANCE OF XCEL MUNICIPALITIES; AUTHORIZING
PARTICIPATION IN RELATED RATE PROCEEDINGS; REQUIRING THE
REIMBURSEMENT OF MUNICIPAL RATE CASE EXPENSES;
AUTHORIZING THE RETENTION OF SPECIAL COUNSEL; FINDING
THAT THE MEETING COMPLIES WITH THE OPEN MEETINGS ACT;
AND MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE
SUBJECT
WHEREAS, on about December 18, 2020, Southwestern Public Service
Company, LLC ("SPS") filed an application for authority to implement a surcharge in the
amount of about $71.5 million related to the rates agreed to and approved by the Public
Utility Commission of Texas ("PUCT") in Docket No. 49831 (SPS's 2019 general rate
case); and
WHEREAS, SPS's application to approve a surcharge is in accord with the
agreement the parties, including the Alliance of Xcel Municipalities ("AXM"), reached in
Docket No. 46936 (SPS's 2017 "Wind -Farm Case") in which the PUCT approved SPS's
request to allow it to construct and operate the Hale and Sagamore wind facilities; and
WHEREAS, in the Wind -Farm Case the parties agreed that in SPS's then -next
general rate case, SPS could seek to implement the rates finally approved in that general
rate case such that those rates would relate back to the 35th day after it filed its general
rate case; and
WHEREAS, that general rate case is Docket No. 49831, SPS's 2019 rate case,
and the 35th day after filing in Docket No. 49831, is September 12, 2019; and
WHEREAS, the rates the PUCT ultimately approved in Docket No. 49831 have an
effective date of August 31, 2020, thus making the period over which the surcharge is
calculated, the period from September 12, 2019 through August 31, 2020; and
WHEREAS, SPS proposes to implement the surcharge over a one-year period
from April 1, 2021 through March 31, 2022; and
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WHEREAS, AXM's Special Counsel and rate experts engaged on behalf of AXM
have reviewed SPS's application to implement an surcharge and have confirmed that
SPS correctly calculated the surcharge and that its method for implementing the
surcharge is mathematically correct and consistent with AXM's prior agreement with SPS;
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, in order to maximize the efficient use of resources and expertise in
reviewing SPS's request it is prudent to coordinate the City's efforts with a coalition of
similarly situated municipalities; and
WHEREAS, the City, in matters regarding SPS's rates, services, and operations
has in the past joined with other local regulatory authorities in the Alliance of Xcel
Municipalities ("AXM") of cities and hereby continues its participation in AXM; and
WHEREAS, SPS simultaneously filed its application to implement a surcharge with
the Public Utility Commission of Texas, and therefore the decision of the Public Utility
Commission of Texas could affect SPS's proposed surcharge, and thus impact the rates
charged within the City, and in order for the City's participation to be meaningful it is
important that the City promptly intervene in such proceeding at the Public Utility
Commission of Texas.
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. The City APPROVES SPS's application filed on about December 18, 2020,
to implement a net surcharge in the amount not to exceed $71,546,546, including interest
in the amount of $1,604,142, and directs SPS to refund to ratepayers any over -recovery
that may occur above the $71,546,546.
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Section 3, The City authorizes intervention in proceedings related to SPS's application
before the Public Utility Commission of Texas and related proceedings in courts of law as
part of the coalition of cities known as the Alliance of Xcel Municipalities.
Section 4. The City hereby directs SPS to reimburse the City's rate case expenses, as
part of the Alliance of Xcel Municipalities, and that it do so on a monthly basis and within
30 days after submission of the City's invoices related to proceedings involving SPS
before the City, the Public Utility Commission of Texas, or any court of law.
Section 5. Subject to the right to terminate employment at any time, the City retains
and authorizes the law firm of Herrera Law & Associates, 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 and to retain such experts as may be
reasonably necessary for review of SPS's surcharge application subject to approval by
the City.
Section 6. The City, through its participation in the Alliance of Xcel Municipalities, shall
review the invoices of the lawyers and rate experts for reasonableness before submitting
the invoices to SPS for reimbursement.
Section 7. A copy of this resolution shall be sent to SPS's local representative and to
Mr. Alfred R. Herrera, Herrera Law & Associates, PLLC, 4524 Burnet Road, Austin, Texas
78756.
Section 8. The meeting at which this resolution was approved was in all things
conducted in compliance with the Texas Open Meetings Act, Texas Government Code,
Chapter 551.
Section 9. This resolution shall become effective from and after its passage.
PASSED AND APPROVED this 91h day of fe�rugry, ?O�
Marles 91arnes, Mayor
A T:
Belinda Hinojo a, ty Secretary
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