RE 2023-0509.1 TNMPRESOLUTION NO. 2023-0509.1
A RESOLUTION OF THE CITY OF COPPELL, TEXAS FINDING
THAT TEXAS-NEW MEXICO POWER COMPANY'S
APPLICATION FOR APPROVAL TO AMEND ITS 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; PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, the City of Coppell, Texas ("City") is an electric utility customer
of Texas-New Mexico Power Company ("TNMP" or "Company") 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 5 , 2023 , TNMP filed with the Commission an
Application for Approval to Amend its Distribution Cost Recovery Factor ("DCRF"),
Commission Docket No. 5 4807, seeking to increase distribution rates by $14,800,834
million annually; 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 who
have retained original jurisdiction over electric utility rates deny TNMP's DCRF.
NOW, THEREFORE, BE IT RESOLVED 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. 54807; and, authorize the City Manager or designee to undertake appropriate
administrative action necessary to comply with this Resolution.
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 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 should and, are in all matters denied.
SECTION 4. That the Company should 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 Thomas Brocato, General Counsel to TNMP Cities, at Lloyd Gosselink
Rochelle & Townsend, P.C., P.O. Box 1725, Austin, TX 78767-1725, or
tbrocatoAlglawfirm.corn.
SECTION 8. This Resolution shall be effective from and after its passage as provided by
law.
PASSED,APPROVED AND ADOPTED on th. 9th day of May,2023.
k,
iju thew,Mayor Pro Tem
A 'T:
Ashley Owens, Secretary
APPRO D ; S ,♦ F• 'd :
, /
/// i
Robert . Hager, City torney