RE 2020-0428.1 TNMP DCRF Denial
RESOLUTION NO. 2020-0428.1
A RESOLUTION OF THE CITY OF COPPELL, TEXAS FINDING THAT
TEXAS-NEW MEXICO POWER COMPANY’S APPLICATION FOR A
DISTRIBUTION COST RECOVERY FACTOR TO INCREASE
DISTRIBUTION RATES WITHIN THE CITY SHOULD BE DENIED;
AUTHORIZING PARTICIPATION WITH TNMP CITIES;
AUTHORIZING THE HIRING OF LEGAL COUNSEL AND
CONSULTING SERVICES; 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, the City of Coppell, Texas (“City”) is an electric utility customer of Texas-New Mexico
Power Company (“TNMP” or “Company”), and a regulatory authority with an interest in the rates and charges of
TNMP; and
WHEREAS, the Cities Served by Texas-New Mexico Power Company (“TNMP Cities”) is a coalition of
similarly situated cities served by TNMP that have joined together to efficiently and cost effectively review and
respond to electric issues affecting rates charged in TNMP’s service area in matters before the Public Utility
Commission (“Commission”) and the courts; and
WHEREAS, on or about April 6, 2020, TNMP filed with the Commission an Application for Approval of
a Distribution Cost Recovery Factor (“DCRF”), Commission Docket No. 50731, seeking to increase distribution
rates by $14.7 million annually (an approximately $2.79 increase to the average residential customer’s bill from
the rates approved in the Company’s most recent rate case); and
WHEREAS, the City of Coppell will cooperate with TNMP Cities in coordinating their review of TNMP’s
DCRF filing with designated attorneys and consultants, prepare a common response, negotiate with the Company,
and direct any necessary litigation, to resolve issues in the Company’s filing; and
WHEREAS, all electric utility customers residing in the City will be impacted by this ratemaking
proceeding if TNMP’s Application is granted; and
WHEREAS, working with the TNMP Cities to review the rates charged by TNMP allows members to
accomplish more collectively than each city could do acting alone; and
WHEREAS, TNMP Cities’ members and attorneys recommend that members deny TNMP’s DCRF.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF COPPELL,
TEXAS:
SECTION 1. That the City is authorized to participate with TNMP Cities in Commission Docket No.
50731.
SECTION 2. That, 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, P.C. and consultants to negotiate
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with the Company, make recommendations to the City regarding reasonable rates, and to direct any necessary
administrative proceedings or court litigation associated with an appeal TNMP's DCRF application.
SECTION 3. That the rates proposed by TNMP to be recovered through its DCRF charged to customers
located within the City limits, are hereby found to be unreasonable and shall be denied.
SECTION 4. That the Company shall continue to charge its existing rates to customers within the City.
SECTION 5. That the City's reasonable rate case expenses shall be reimbursed in full by TNMP within
30 days of the adoption of this Resolution, and within 30 days of presenting monthly bills to TNMP thereafter.
SECTION 6. 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.
SECTION 7. That a copy of this Resolution shall be sent to Scott Seamster,Associate General Counsel,
Texas-New Mexico Power Company, 577 N. Garden Ridge Blvd., Lewisville, Texas 75067, and to Chris
Brewster, General Counsel to TNMP Cities, at Lloyd Gosselink Rochelle & Townsend, P.C., P.O. Box 1725,
Austin, TX 78767-1725, or cbrewster@lglawfirm.com.
PASSED AND APPROVED this 2,$�'' day of , 2020.
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City Attorney
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