RE 2010-1214.1RESOLUTION NO. Zp1 D- i 2 A. i
A RESOLUTION OF THE CITY OF COPPELL, TEXAS
FINDING THAT TEXAS -NEW MEXICO POWER
COMPANY'S REQUESTED INCREASES TO ITS
ELECTRIC TRANSMISSION AND DISTRIBUTION RATES
AND CHARGES WITHIN THE CITY SHOULD BE
DENIED; FINDING THAT THE CITY'S REASONABLE
RATE CASE EXPENSES SHALL BE REIMBURSED BY
THE COMPANY; 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, pursuant to § 33.001 of the Public Utility Regulatory Act ( "PURA "), the
City has exclusive original jurisdiction over the electric rates, operations, and services provided
within its city limits;
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 ( "City ") a Statement of Intent to increase electric transmission and delivery rates by
$20.1 million on a system -wide basis within its service area effective October 2, 2010; and
WHEREAS, pursuant to PURA § 36.108, the City lawfully suspended the October 2,
2010, effective date by resolution to provide time to study the reasonableness of the Company's
application to increase rates; and
WHEREAS, the City is a member of the coalition of Cities Served by TNMP and has
cooperated with its similarly situated city members to conduct a review of the Company's
application, to hire and direct legal counsel and consultants, to prepare a common response to the
filing, to negotiate with the Company and to direct any necessary litigation appealing final city
action; and
WHEREAS, the City, in a reasonably noticed meeting that was open to the public,
considered the Company's application; and
WHEREAS, the consultants who were retained by Cities Served by TNMP to evaluate
the merits of the Company's application have determined that the Company's requested $20.1
million increase in revenues for its transmission and distribution system is not supported by
evidence; and
WHEREAS, PURA § 33.023 provides that reasonable costs incurred by cities in
ratemaking activities are to be reimbursed by the regulated utility.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF COPPELL, TEXAS:
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1. That the rates proposed by Texas -New Mexico Power Company, to be recovered
through its electric transmission and distribution rates charged to customers located within the
City limits, are hereby found to be unreasonable and shall be denied.
2. That the Company shall continue to charge its existing rates for transmission and
distribution services to customers within the City.
3. That the City's reasonable rate case expenses shall be reimbursed by TNMP.
4. 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.
5. 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 Chris Brewster, Lloyd Gosselink Rochelle & Townsend, P.C., P.O. Box 1725, Austin, Texas
78767 -1725.
PASSED AND APPROVED, this the day of N, , 2010.
Douglas N. Stover, Mayor
A EST:
d z" 'I . �0
istel Pettinos, City Secretary
APP VE S TO FORM:
it Attorney
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