HomeMy WebLinkAbout1998-O-04 - Retail Base Rate ReductionORDINANCE NO. 1998-4
AN ORDINANCE APPROVING RETAIL BASE RATE REDUCTIONS FOR
TEXAS UTILITIES ELECTRIC COMPANY; PROVIDING AN EFFECTIVE
DATE THEREFORE; APPROVING A MOST FAVORED NATION PROVISION;
PROVIDING AN EFFECTIVE DATE; AND FINDING AND DETERMINING
THAT THE MEETING AT WHICH THIS ORDINANCE IS PASSED IS OPEN
TO THE PUBLIC AS REQUIRED BY LAW.
WHEREAS; this City is a regulatory authority under the 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, TUEC's rates should be reviewed to reflect load growth, cost reductions, debt
refinancing, the possible synergistic savings attributable to the merger with Enserch, declining rate
base and declining cost of capital, all of which could have occurred since base rates were last
reviewed in PUC Docket No. 11735; and
WHEREAS, the Stipulation calls for recording depreciation that would normally be charged
against transmission and distribution assets as additional depreciation on nuclear production assets;
and
WHEREAS, this City desires the PUC to review the Stipulation, PUC Docket No. 18490,
and asks the PUC 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 provisions
of the Stipulation are consistent with sound regulatory and public policy.
NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
STEPHENVILLE, 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) are hereby approved effective January 1, 1998. The referenced schedules 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.
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SECTION 2. Nothing contained in this Ordinance shall be construed now or hereafter as
limiting or modifying in any manner the right and power of the Governing body of this municipality
under the law to regulate the rates, operations, and services of TUEC.
SECTION 3. Notwithstanding any other provision of this Ordinance, the rates authorized
for electric service in this municipality 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
other appeals from City ordinances connected therewith.
SECTION 4. This Ordinance shall be in full force and effect from and after its passage, and
it is so ordained.
SECTION 5. It is hereby officially found and determined that the meeting at which this
Ordinance is passed is open to the public and as required by law and that public notice of the time,
place and purpose of said meeting was given as required.
PASSED AND APPROVED at a Regular Meeting of the City Council of the City of
Stephenville, Texas, on this the 17th. day of February, 1998.
Jo ollan, Mayor
ATTEST:
Davis,
City Administrator
Randy Thomas, City Attorney
Approved as to form and legality
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