HomeMy WebLinkAboutResolution No. 04-61 CITY OF THE COLONY
RESOLUTION NO. 0~'~--~/~ [
DIRECTING TXU ELECTRIC DELIVERY COMPANY TO FILE
CERTAIN INFORMATION WITH THE CITY OF THE COLONY;
SETTING A PROCEDURAL SCHEDULE FOR THE GATHERING AND
REVIEW OF NECESSARY INFORMATION IN CONNECTION
THEREWITH; SETTING DATES FOR THE FILING OF THE CITY'S
ANALYSIS OF THE COMPANY'S FILING AND RATIFYING THE
HIRING OF LEGAL COUNSEL AND CONSULTANTS; RESERVING
THE RIGHT TO REQUIRE THE REIMBURSEMENT OF THE CITY OF
THE COLONY'S RATE CASE EXPENSES; SETTING A PUBLIC
HEARING FOR THE PURPOSES OF DETERMINING IF THE
EXISTING RATES OF TXU ELECTRIC DELIVERY COMPANY ARE
UNREASONABLE OR IN ANY WAY IN VIOLATION OF ANY
PROVISION OF LAW AND THE DETERMINATION BY THE CITY OF
THE COLONY OF JUST AND REASONABLE RATES TO BE CHARGED
BY TXU ELECTRIC DELIVERY COMPANY.
WHEREAS, the City of The Colony is a regulatory authority under the Public Utility
Regulatory Act (PURA) and has original jurisdiction over the rates of TXU Electric Delivery
(TXU) to determine if such rates are just and reasonable; and
WHEREAS, Sections 33.021, 36.003 and 36.151 of PURA empowers a regulatory
authority, on its own motion or on a complaint by any affected person, to determine whether the
existing rates of any public utility for any service are unreasonable or in any way in violation of
any provision of law, and upon such determination, to determine the just and reasonable rates;
and
WHEREAS, the City of The Colony has reason to believe that TXU is overearning and
its rates are excessive; and
WHEREAS, the City of The Colony is a member of the Steering Committee of Cities
Served by TXU; and
WHEREAS, the Steering Committee of Cities Served by TXU has unanimously
recommended that cities pas a resolution that requires TXU to show cause why its transmission
and disthbution rates should not be reduced; and
WHEREAS, the City of The Colony, and the City Council of the City of The Colony,
desires, on its own motion, to exercise its authority under Sections 33.021, 36.003 and 36.151 of
PURA; and
WHEREAS, a procedural schedule should be established for the filing of certain
information by TXU, procedures to be followed to obtain and review information from TXU, the
filing of an analysis of such information by the City, the filing of rebuttal information from TXU,
and a public heating at which time the City shall make a determination whether the existing rates
of TXU are unreasonable or are in any way in violation of any provision of law and if such rates
should be revised and just and reasonable rates determined for TXU.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF THE COLONY, TEXAS:
SECTION 1. This resolution constitutes notice of the City's intent to proceed with an inquiry
into the transmission and distribution rates charged by TXU. On or before November 30, 2004,
TXU shall file with the City of The Colony, information that demonstrates good cause for
showing that TXU's transmission and distribution rates should not be reduced. Specifically,
TXU shall file with the City of The Colony information for the test year beginning July 1, 2003
and ending June 30, 2004, regarding TXU's cost of service elements, including, but not limited
to, the elements detailed by the Public Utility Commission as necessary for the filing of a
Statement of Intent to Change Rates.
SECTION 2. City's designated representatives shall have the right to obtain additional
information from TXU through the filing of requests for information, which shall be responded
to within fifteen (15) days from the receipt of such request for information.
SECTION 3. City's designated representatives shall file their analysis of TXU's filing and
information on or before December 29, 2004.
SECTION 4. TXU shall file any rebuttal to the analysis of City's representative on or before
January 7, 2005. With its rebuttal, TXU may present whatever additional information it desires
to defend its current rates.
SECTION 5. A public heating shall be conducted by the City Council for the City of The
Colony on January 7, 2005, during the regular council meeting scheduled to commence at 7:00
p.m. At such heating a representative of TXU and a representative of the City of The Colony's
consultants will each be allowed to address the City Council and summarize previously flied
reports for not more than 15 minutes. Based upon such hearing, a determination of the
reasonableness of the existing rates of TXU shall me made by the City Council and, if necessary,
just and reasonable rates shall be determined to be thereafter observed and enforced for all
services of TXU within the City of The Colony, Texas.
SECTION 6. The City Council may, from time to time, amend this procedural schedule and
enter additional orders as may be necessary in the public interest and to enforce the provisions
hereof.
SECTION 7. Subject to the right to terminate employment at any time, the City of The Colony
hereby ratifies the Steering Committee's selection of Geoffrey Gay and Kristen Doyle with the
law firm of Lloyd, Gosselink, Blevins, Rochelle, Baldwin & Townsend as legal cotmsel to assist
the City of The Colony in its ratemaking and to prosecute any appeals to the Texas Public Utility
Commission or court.
SECTION 8. Fees and expenses of attorneys and consultants assisting the City in the Steering
Committee's review of the reasonableness of TXU's rate will be processed through the Steering
Committee but the City reserves the right to seek reimbursement from TXU pursuant to the
PURA Section 33.023.
SECTION 9. That it is hereby officially found and determined that the meeting at which this
ordinance is passed was open to the public as required by law, and that public notice of the time,
place and purpose of said meeting was given all as required by Section 551.041, Texas
Government Code.
Passed and APPROVED this 16th day of August, 2004.
Christie Wilson, City Secretary