1978-023RESOLUTION NO. 78 -
CITY OF SOUTHLAKE, TEXAS
WHEREAS, approximately July 6, 1978, Tri -County Electric Cooperative, Inc.
filed with the City of Southlake, Texas, a request for rate change; and,
WHEREAS, the City Attorney and City Council have made a preliminary review
of saia application and will set the date of the first public hearing at a later
time in this present regular City Council session; and,
WHEREAS, pending hearings on said application and the future decision of
the said City thereon and while such matter is pending, the said City, through
its City Council, deems it in the best interest of the City and its citizen
customers of said utility that the operation of any proposed rate change, in
whole or in part, of the said utility be suspended until final action of the
said City Council cn said rate change request or December 6, 1978, whichever
event occurs first;
NOW THEREFIORE, BE IT RESOLVED BY THE CITY OF SOUTHIAKE, TEXAS:
That the effective date of any change in the rate schedule of Tri -County
Electric Cooperative,Inc. within the City of Southlake, Texas existing prior
to August 16, 1978 be and the same is hereby suspended Lentil final action of
said City Council on the said rate change request; or December 6, 1978, whichever
event occurs first;
That such suspension shall be effective upon delivery of a copy of this
resolution to said Tri -County Electric Cooperative, Inc. after delivery of
the written reasons for such suspension which are attached hereto for reference
purposes;
That during the period of suspension as above provided the rates in force
prior to the filing of the present rate increase application by Tri -County
Electric Cooperative,Inc. shall continue in force; and,
BE IT FURTHER RESOLVED:
That the City Secretary is hereby authorized and directed to deliver a copy
of this resolution to said utility company after delivery of the written reasons
therefor, such delivery to be by certified mail; return receipt requested, or by
personal delivery.
ADOPTED AND APPROVED this_ da of August, 1978.
ATTEST':-•..
Mayor
Lau
City Secretary
is
FINDINGS OF CITY COUNCIL OF CITY OF SOUTHLAKE, TEXAS
CONCERNING REASONS FOR SUSPENSION OF ANY RATE CHANGE
IN RATE SCHEDULE OF TRI -COUNTY ELECTRIC COOPERATIVE, INC.
The reasons of the City Council of the City of Southlake, Texas for
the consideration of and the passing of Reaolution No. 78- o?,3 , which
reasons were adopted by the said City Council prior to the actual passage
of such resolution, are as follows:
I. The application for rate adjustment was first received by the said City
July 6, 1978 and only one Council meeting has transpired since such date, and
the Council believes that approximately 120 days or more will be needed for
adequate review of the matter by the Council itself, its attorney, and the
conducting of public hearings.
II. A clarification of the test period involved needs to be made as apparently
there is an erroneous test period of 1-1-1967 thru 12-31-1976 as the adjusted
test year in the application. The Utility is hereby requested to advise of the
correct test year and if such test year and data supporting the same is the
same information as on file in the Public Utility Caanission of Texas Docket
No. 1395.
III. It will be necessary and proper for the citizens of the City of Southlake,
Texas to engage in public hearings and hear discussions both by the regulatory
body and Utility at rate hearings, which first rate hearing date the Council will
set later in this said Council meeting but it is contemplated such hearings will
not comrence Lentil the last meeting in September, 1978, at the earliest, due to
the pressing matters of budget and change in -city personnel.
IV. The status of Docket No. 680 on file with the Public Utility Conn fission of
Texas which is an appeal by the utility and which is still pending by order of
said Commission issued September 21, 1977, and the City attorney is hereby
authorized to investigate such status.
V. In the event the utility is basing its application on the test period of
the year 1976, as adjusted, the Council believes it needs more current data
and requests any available more current data including a oomparision of 1978
estimated and actual fuel cost adjustment factors and/or -purchase power
adjustment factors. The said utility failed to furnish all data requested at
It.
the last public hearing on the previous rate application and the Council
authorized its attorney to request in writing from the utility by not later
than August 15, 1978, such requested information.
VI. The Council finds that an apparent violation of the utility's franchise
agreement with the City could occur by the unrestricted right of the utility
to extend service to any permanent residence wherever located within the City
of Southlake, Texas as provided in Section 1AR Extension Policy of the
pending rate application Tariff sheets.
VII. The City Council has been advised that the Supreme Court of Texas on
July 26, 1978 in the case of Southwestern Bell Company vs. Public Utility
Commission of Texas has rendered an opinion concerning has rates shall be
based under the Public Utility Regulatory Act and such decision together with
the pending application information and Commission order in Docket No. 1395
should be reviewed prior to any action by this City Council and the City attorney
is so requested to make such review and the utility is requested to furnish an
executed copy of final Coanmi.ssion order in Docket No. 1395 as the same applies
to the customers outside the city limits of Southlake, Texas.
VIII. Based on the preliminary review of the information on hand by the said
City Council, the City Council is of the present opinion that there is
insufficient information to pass on a rate change and it presently appears
that obtaining proper information and public hearings and proper review could
be accomplished by the Council meeting of Deceaaber 5, 1978 and that the rate
increase should be suspended at least until such date.
IX. The Council further finds that in PUC -Docket 1973 an order was apparently
entered in which the changing of corporate structure was approved by the PUC
in connection with the applicant utility, Brazos Electric Power Cooperative, Inc.
and other companies pertaining to San Miguel Plant Project and information
concerning a description of such matter and the effect, if any, it has on the
rate application of the applicant utility is hereby requested from said utility.
The above findings made by the City Council of the City of Southlake,Texas
of this the Za,—day of August, 1978.
ATTEST:
Mayor
ity.5ecretary