HomeMy WebLinkAboutR21-532•;
RESOLUTION NO. R21-532
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, 2021; 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, 2021, to increase its base revenues for its Texas retail
service area by approximately $143.3 million, which is an increase in base revenue of about
23%; and
WHEREAS, SPS proposed to implement its proposed increase in rates effective
on March 15, 2021; and
WHEREAS, on about March 25, 2021, SPS updated its Statement of Intent to
increase rates, modifying its proposed increase from about $143.3 million to about $143.0
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, 2021; and
WHEREAS, by agreement between AXM and SPS, SPS extended the suspension
period to September 30, 2021; 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
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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
and
WHEREAS, SPS failed to establish that its proposed rates are just and reasonable;
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/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. 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) The Statement of Intent fails to provide sufficient information to justify the
requested increase in revenue or to justify the changes set forth in SPS's
proposed tariffs;
b) The 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.
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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,
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 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.
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 28"' day of
AT ST:
CITf SEC RY
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