HomeMy WebLinkAboutR07-173RESOLUTION NO. R07-173
A RESOLUTION BY THE CITY OF PLAINVIEW, TEXAS
("CITY") APPROVING A SETTLEMNENT REGARDING
SOUTHWESTERN PUBLIC SERVICE COMPANY'S
("SPS") APPLICATION FOR A RATE INCREASE,
INCLUDING SPS' APPLICATION TO RECONCIE ITS
FUEL EXPENSES FOR THE YEARS 2004 AND 2005, ON
APPEAL BEFORE THE PUBLIC UTILITY COMMISSION
OF TEXAS; DETERMINING THAT THE MEETING AT
WHICH THIS RESOLUTION WAS PASSED COMPLIED
WITH THE TEXAS OPEN MEETINGS ACT; AND MAKING
SUCH OTHER FINDINGS AND PROVISIONS RELATED
TO THE SUBJECT.
WHEREAS, Southwestern Public Service Company ("SPS") on May 31,
2006 submitted to the City and to the Public Utility Commission of Texas (PUCT)
an application to increase its rates by approximately $47.9 million; and
WHEREAS, on May 31, 2006, SPS also submitted to the PUCT an
application to reconcile its fuel expenses for the period of January, 2004 through
December, 2005, during which reconciliation period SPS contends it incurred
approximately $957 million in total fuel and purchased-power expenses and an
under recovery of approximately $138 million; and
WHEREAS, the City joined with other cities to form a coalition of cities to
be known as the Alliance of Xcel Municipalities ("AXM") in order to coordinate the
hiring and direction of legal counsel and consultants working on behalf of AXM
and the City; and
WHEREAS, the City retained the services of lawyers and consultants who
primarily concentrate their practices on reviewing and analyzing the kinds of
issues and subject matter contained in SPS' rate-filing package, who after their
initial investigation recommended to the City to deny SPS' requested rate
increase; and
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WHEREAS, the City in a timely fashion denied SPS' request fora base-
rate increase; and
WHEREAS, SPS in a timely fashion appealed to the PUCT, the City's
denial of SPS' base-rate increase; and
WHEREAS, after lengthy negotiations between the AXM, SPS, and other
parties to the rate proceedings pending before the PUCT, the parties have
reached a unanimous agreement to resolve their differences by way of
settlement; and
WHEREAS, as part of the settlement, SPS has agreed to (a) implement
certain improvements in quality of service; (b) cooperate with the City in drafting
a certain transmission cost-recovery rule pending before the PUCT; (c) a
reduced increase in base rates; (d) a reduction in its 2004-2005 reconcilable fuel
expenses; and (e) to a further reduction in its 2006-2007 reconcilable fuel
expenses; and
WHEREAS, resolution of the case as set forth in the settlement will serve
to reduce rate case expenses and bring certainty not otherwise available from a
fully litigated outcome of the case.
NOW THEREFORE, BE IT RESOLVED BY THE CITY
COUNCIL/COMMISSION OF THE CITY OF PLAINVIEW, TEXAS THAT:
Section 1. That 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 a settlement of SPS' rate application and
fuel-reconciliation petition, that incorporates the following terms:
Resolution R07-173 Page 2 of 3
a. Abase-rate increase of $23 million as opposed to SPS' requested
base-rate increase of $47.9 million;
b. A reduction in reconcilable fuel expenses for the period of 2004-
2005 of $27 million;
c. A further reduction in reconcilable fuel expenses for the period of
2006-2007 of $2.3 million;
d. A cap on the increase of its service-availability charge for
residential customers of $5.10 per month, and of $11.00 per month
for its small business customers;
e. No net increase in the overall rates paid by the Canadian River
Municipal Water Authority;
f. A commitment by SPS to spend an additional $5 million in 2007
and an additional $5 million in 2008 for the addition of apprentices,
journeyman lineman, meterman, design engineers, area engineers,
substation electricians and relay technicians, and managers and/or
community service representatives, all with the goal of improving
SPS' quality of service;
g. A commitment by SPS to cooperate with AXM and the City to
attempt to reach a consensus on proposed language for a
transmission cost-recovery rule currently pending before the PUCT;
h. The litigation of a sole issue related to SPS' wholesale contract with
the EI Paso Electric Company; and
Reimbursement of AXM's and the City's rate case expenses
Section 3. 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.
PASSED AND APPROVED this 10th day of April, 2007.
ATT ST:
M YOR CIT SECRETARY
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