RE 2010-0914.2RESOLUTION NO. 2010 - 0914.2
RESOLUTION OF THE CITY OF COPPELL SUSPENDING
THE OCTOBER 1, 2010 EFFECTIVE DATE OF TEXAS -
NEW MEXICO POWER COMPANY'S ( "TNMP'S ")
REQUESTED RATE CHANGE TO PERMIT THE CITY
TIME TO STUDY THE REQUEST AND TO ESTABLISH
REASONABLE RATES; APPROVING COOPERATION
WITH OTHER TNMP CITIES; HIRING LLOYD
GOSSELINK ATTORNEYS AND CONSULTING
SERVICES TO NEGOTIATE WITH THE COMPANY AND
DIRECT ANY NECESSARY LITIGATION AND APPEALS;
DIRECTING TNMP TO REIMBURSE THE CITY'S RATE
CASE EXPENSES ON A MONTHLY BASIS; FINDING
THAT THE MEETING AT WHICH THIS RESOLUTION IS
PASSED IS OPEN TO THE PUBLIC AS REQUIRED BY
LAW; REQUIRING NOTICE OF THIS RESOLUTION TO
THE COMPANY AND LEGAL COUNSEL
WHEREAS, on or about August 26, 2010, Texas -New Mexico Power Company
( "TNMP" or "Company "), pursuant to PURA §§ 33.001 and 36.001 filed with the City of
Coppell a Statement of Intent to change electric delivery rates in all municipalities exercising
original jurisdiction within its service area effective October 1, 2010; and
WHEREAS, the City of Coppell is a member of the coalition of TNMP Cities and will
cooperate with the other similarly situated city members and other city participants in conducting
a review of the Company's application and to hire and direct legal counsel and consultants to
prepare a common response and to negotiate with the Company and direct any necessary
litigation; and
WHEREAS, PURA § 36.108 grants local regulatory authorities the right to suspend the
effective date of proposed rate changes for ninety (90) days after the date the rate change would
otherwise be effective; and
WHEREAS, PURA § 33.023 provides that costs incurred by Cities in ratemaking
activities are to be reimbursed by the regulated utility.
THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
COPPELL, TEXAS:
1. That the October 1, 2010 effective date of the rate request submitted by TNMP on
or about August 26, 2010, be suspended for the maximum period allowed by law to permit
adequate time to review the proposed changes and to establish reasonable rates.
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2. That the City is authorized to cooperate with other cities served by TNMP to
coordinate efforts to protect the interests of the City and protect the interests of TNMP's end -use
customers residing and conducting business within municipal limits.
3. Subject to the right to terminate employment at any time, the City of Coppell
hereby authorizes the hiring of the law firm of Lloyd Gosselink Rochelle & Townsend and
consultants to negotiate with the Company, make recommendations regarding reasonable rates
and to direct any necessary administrative proceedings or court litigation associated with an
appeal of a rate ordinance and the rate case filed with the City or Public Utility Commission.
4. That the City's reasonable rate case expenses shall be reimbursed by TNMP on a
monthly basis, and within 14 calendar days of receipt by TNMP of a request for reimbursement.
5. That it is hereby officially found and determined that the meeting at which this
Resolution is passed is open to the public as required by law and the public notice of the time,
place, and purpose of said meeting was given as required.
6. A copy of this Resolution shall be sent to TNMP, care of Scott Seamster,
Corporate Counsel, 225 E. John Carpenter Freeway, Suite 1500, Irving, Texas 75062 -2282 and
to Christopher Brewster, at Lloyd Gosselink Rochelle & Townsend, P.C., 816 Congress Avenue,
Suite 1900, Austin, Texas 78701.
Bob Mahalik, Mayor Pro Tem
ATTEST:
APPROV AS TO FORM:
City Attorney
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