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Home My WebLink AboutR21-510174 RESOLUTION NO. R21-510 A RESOLUTION BY THE CITY OF PLAINVIEW, TEXAS ("CITY") SUSPENDING SOUTHWESTERN PUBLIC SERVICE COMPANY'S PROPOSED EFFECTIVE DATE IN CONNECTION WITH ITS STATEMENT OF INTENT SUBMITTED ON ABOUT FEBRUARY 8, 2021; APPROVING TEMPORARY RATES; AUTHORIZING THE CITY'S CONTINUED PARTICIPATION WITH OTHER CITIES IN THE ALLIANCE OF XCEL MUNICIPALITIES ("AXM") TO DIRECT THE ACTIVITIES OF LAWYERS AND CONSULTANTS AND PARTICIPATION IN RELATED RATE PROCEEDINGS; AUTHORIZING THE HIRING OF ATTORNEYS AND CONSULTANTS; REQUIRING REIMBURSEMENT OF REASONABLE LEGAL AND CONSULTANT EXPENSES; REQUIRING PROOF OF NOTICE; 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, Southwestern Public Service Company ("SPS") filed a Statement of Intent with the City and with the Public Utility Commission of Texas ("PUCT") on or about February 8, 2021, to increase its base -rate revenue requirement for its Texas retail service area by approximately $143.3 million, which is an increase in base revenue of about 23%; 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, in order to maximize the efficient use of resources and expertise in reviewing, analyzing, and investigating SPS's rate request and its changes in tariffs it is prudent to coordinate the City's efforts with a coalition of similarly situated municipalities; and 1 of 4 2021 SPS Rate Application Filed on or About Feb. 8, 2021 Suspension Resolution 1 175 WHEREAS, the City, in matters regarding applications by SPS to change rates, has in the past joined with other local regulatory authorities to form the Alliance of Xcel Municipalities ("AXM") and hereby continues its participation in AXM; and WHEREAS, SPS's rate request consists of a voluminous amount of information including SPS's rate -filing package, pre -filed direct testimony, exhibits, schedules, and workpapers; and WHEREAS, SPS proposed March 15, 2021 as the effective date for its requested increase in rates, which is the 35th day after the date SPS submitted its application; and WHEREAS, it is not possible for the City to complete its review of SPS's filing within 35 days; and WHEREAS, the City will need an adequate amount of time to review and evaluate SPS's rate application to enable the City to adopt a final decision as a local regulatory authority with regard to SPS's requested rate increase; and WHEREAS, SPS filed its Statement of Intent to raise rates with the City and with the Public Utility Commission of Texas on the same date, February 8, 2021 and it is important to intervene in the PUCT proceeding because the PUCT's decisions could impact rates within the City; and WHEREAS, consistent with the settlement the PUCT approved in Docket No. 46936 regarding SPS's acquisition of the Hale and Sagamore wind -generation facilities, SPS in this application requests that its current rates be established as temporary rates as of March 15, 2021, which is the 35th day after the date SPS filed its application to increase rates ("Temporary Rate Date"), and that the final rates set in this case be applied to usage on and after the Temporary Rate Date, subject to refund or surcharge to the extent final rates differ from SPS's current rates. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIUCOMMISSION FOR THE CITY OF PLAINVIEW, TEXAS THAT: Section 1. The findings set out in the preamble are in all things hereby approved. 2of4 2021 SPS Rate Application Filed on or About Feb. 8, 2021 Suspension Resolution 176 Section 2. Consistent with PURA § 36.108(a)(1) and § 36.112(d), SPS's proposed effective date of March 15, 2021 to increase base rates, is hereby suspended one hundred and thirty-five (135) days, or at least until July 29, 2021. Section 3. The statutory suspension period will be extended automatically day for day should SPS extend its proposed effective date, and may be further extended if SPS does not provide timely, meaningful, and proper public notice of its request to increase rates, or if its rate -filing package is materially deficient. Section 4. SPS's request that its current rates be declared Temporary Rates as of March 15, 2021, is hereby APPROVED, subject to refund or surcharge to the extent the final approved rates differ from SPS's current rates. Section 5. The City authorizes intervention in proceedings related to SPS's Statement of Intent before the Public Utility Commission of Texas and any related proceedings, including proceedings in any courts of law. Section 6. The City continues its participation with other cities in a coalition of cities known as the Alliance of Xcel Municipalities ("AXM") with the understanding that the Steering Committee of AXM is to provide direction and guidance to Special Counsel representing said cities. Section 7. The City hereby retains Herrera Law & Associates, PLLC as Special Counsel to represent the City with regard to SPS's requested increase in rates and related proceedings before local and state regulatory authorities and any court of law and authorizes Special Counsel to employ such rate experts as may be necessary for review and evaluation of SPS's rate application. Section 8. The City, in coordination with the Steering Committee, shall review the invoices of the lawyers and rate experts for reasonableness before submitting the invoices to SPS for reimbursement. Section 9. SPS shall reimburse the City on a monthly basis, through AXM'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. 3 of 4 2021 SPS Rate Application Filed on or About Feb. 8, 2021 Suspension Resolution 1 177 Section 10. Not later than seven days after SPS has completed publication of notice of its proposed increase in rates, SPS shall notify AXM that it has completed notice by providing proof of notice to AXM's Special Counsel, Herrera Law & Associates, PLLC, and such proof shall be in the form of an affidavit from a representative from SPS that has personal knowledge that SPS has published notice; such affidavit shall include a copy of notice SPS published. Section 11. The City Secretary or other appropriate city official shall provide a copy of this Resolution to Mr. Alfred R. Herrera, Herrera Law & Associates, PLLC, 4524 Burnet Road, Austin, Texas 78756, 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, and Jeremiah W. Cunningham, Rate Case Manager, Southwestern Public Service Company, 790 S. Buchanan St. Amarillo, Texas 79101. Section 12. 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 13. To the extent any Resolution previously adopted by the City Council is inconsistent with this Resolution, it is hereby superseded. Section 14. The findings set out in the preamble are in all things hereby approved. Section 15. This Resolution shall become effective from and after its passage. PASSED AND APPROVED this 9tn day of March, 29?1. ATT T: Belinda Hinojosa CI SECRETARY Charles Starnks, MAYOR 4of4 2021 SPS Rate Application Filed on or About Feb. 8, 2021 Suspension Resolution