HomeMy WebLinkAboutOrdinance No. 98-1013 ORI( INAL
CITY OF THE COLONY, TEXAS
ORDINANCE NO. ~o~-/D/~
AN ORDINANCE OF THE CITY OF THE COLONY,
TEXAS, APPROVING RETAIL BASE RATE
REDUCTIONS FOR TEXAS UTILITIES ELECTRIC
COMPANY; PROVIDING AN EFFECTIVE DATE
THEREFOR; APPROVNG A MOST FAVORED NATIONS
PROVISION; REPEALING ORDINANCE NO. 98-1009
RELATING TO RATES FOR TEXAS UTILITIES
ELECTRIC COMPANY; PROVIDING AN EFFECTIVE
DATE.
WHEREAS, the City of The Colony, Texas, is a regulatory authority under the Texas
Utilities Code and has original jurisdiction over the rates of Texas Utilities Electric Company
("TUEC"); and
WHEREAS, TUEC's retail base rates should be adjusted because of changes that have
occurred since such rates were last reviewed in PUC Docket No. 11735; and
WHEREAS, on December 22, 1997, TUEC filed with the Governing Body of this
municipality a Petition and Statement of Intent to Implement base rate reductions for its retail
electric service customers within this municipality, which base rate reductions are components
of a settlement reached among various parties set forth in a Stipulation and Joint Application
for Approval Thereof ("Stipulation") filed with the Public Utility Commission of Texas (PUC)
on December 17,1997; and
WHEREAS, upon deliberation and consideration of the issues involved, the City
Council has determined that the best interest of the City will be met by approving the proposed
retail base rate reductions.
NOW THREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE
CITY OF THE COLONY, TEXAS:
Section 1. The retail base rate reduction tariffs filed by TUEC (Rider RRD -
Residential Rate Reduction, Rider GSRD - General Service Secondary Rate Reduction, and
Rider RD - Rate Reduction) (together, the "Tariffs") filed by Texas Utilities Electric
Corporation are hereby approved effective January 1, 1998. The Tariffs shall remain in effect
until such time as they may be changed, modified or amended by the approval of the City
Council. The filing of the rate schedules shall constitute notice to the consumers of electricity,
within this municipality, of the availability and application of such rate schedules.
Section 2. The action of the City Council in adopting this rate reduction ordinance shall
not be construed to mean the City of The Colony approves any depreciation shifting procedure
as a means for Texas Utilities Electric Company to recover uneconomic investment in
generation plant. In this regard, the PUC is encouraged to review the shifting of depreciation
from transmission and distribution assets to nuclear production assets, as called for in the
Stipulation, and to determine whether the shifting of depreciation is consistent with sound
regulatory and public policy.
Section 3. Nothing contained in this Ordinance shall be construed as condoning or
accepting any provisions of the Stipulation other than the Tariffs.
Section 4. Nothing contained in this Ordinance shall be construed nor or hereafter as
limiting or modifying in any manner the right and power of the City Council under the law to
regulate the rates, operations and services of TUEC.
Section 5. Notwithstanding any other provision of this Ordinance, the rates
authorized for electric service in the City shall not exceed the lowest rates available to
residents of any other municipality served by TUEC finally resulting from TUEC's filing of the
Stipulation and any appeals from city ordinances connected therewith.
Section 6. Ordinance No. 98-1009 is hereby repealed.
Section 7. That this Ordinance shall take effect immediately from and after its
passage and approval, and it is so ordained.
PASSED AND APPROVED by the City Council of the City of The Colony, Texas,
this
the 2na day of February, 1998.
'Mary glair Watts, Mayor
ATTEST:
Patti A. Hicks, TRMC, City Secretary
APPROVED AS TO FORM: