HomeMy WebLinkAboutORD 1263 - ORD Relating to Rates Charged By Houston Lighting & Power Company
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ORDINANCE NUMBER 1263 ' '
AN ORDINANCE RELATING TO RATES TO BE CHARGED
BY HOUSTON LrGHTING & POWER COMPANY FOR
ELECTRIC UTILITY SERVICE WITHIN THE CORPORATE
LIMITS OF THE CITY OF WEST UNIVERSITY PLA();E,
TEXAS; CONTAINING FINDINGS AND PROVISIONS
RELATED TO THE SUBJECT; PROVIDING FOR A
REPEALER AND FOR SEVERABILITY; AND DECLARING
AN EMERGENCY.
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WHEREAS, on or about March 18, 1986, Houston Lighting & Power
Company (the "Company"), filed with the City of West University Place,
Texas, a Statement of Intent and Petition for Authority to Change Rates
relating to electric utility service, and proper n(j)tice thereof was
duly given; and
WHEREAS, by Ordinance Number 1258, the City Council suspended the
effective date of such proposed rate increase until July 22, 1986; and
WHEREAS, the City Council, having considered the Company. s rate
increase at a public hearing for which proper notice ,was duly given,
finds that such request is excessive; and
WHEREAS, the City Council havi ng ori gi na 1 juri sdi cti on over the
matter finds that a lesser increase in rates should ~e prescribed for
the Company; I
NOW, THEREFORE
BE IT' ORDAINED BY THE CI[TY" COUNCIL O'F THE, CITY OF WEST UNIVERSITY
PLACE, TEXAS:
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Section 1. The City Council of ,the City of, West=University Place
hereby finds the requested rates of: 'the Company to be excessive and
unreasonab 1 e. ' . -
Section 2. The City Council hereby approves and adopts the rates,
adjustments, and determinations set out in Exhibit "A", attached hereto
and incorporated herein for all purposes" and additionally finds and
determines the following: '
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I. Findings:
1. Cost of' Servi.ce'
The revenue requirement"of the Company is $3,087,698,000.00.
Adjustments were made to Operati ons & Maintenance Expenses, Fuel
~xpenses, Purchased Power,' Depreciation Expense, Other Taxes,
Federal Income Taxes, and the Return component~)
a. Operations and Maintenance ~xpenses
Adjustments to the Company. s Operation and Maintenance
Expenses amounted to $45,097~OOO.00. The major adjustments
include . a 'reduction "in' :Salaries and Wages expense of
$4,618,000.00. a' reduction: -' of : Limestone Operating Expenses of
$1,889,000.00, a reduction in Municipal Street Use Fees of
$7,696,000.00, a reduction in Rate Case Expenses of $1,059,000.00,
elimination of EEl dues of $331,000.00, a reduction in Gas
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Operation and Maintenance Expense of $9,464,000.00, and a ,\:'!
reduction for Non-Recurring Maintenance of $8,550,000.00.
b. Fuel Expenses and Purchased Power
The adjustment of Fuel Expenses- is a reduction' of '---..J
$136,181,000.00. The adjustnientto Purchased Power is a reduction
of $40,961,000.00. The Overall, Fixed Fuel Factor per KWH is
$0.020386, the Distribution Level Fixed Fuel Factor per KWH is
$0.020854, and the Transmission Level Fixed Fuel Factor per KWH is
$0.019713.
c. Depreciation
The total adjustment to Depreciation Expense is a reduction
of $13,835,000.00.
d. Other Taxes
The total adjustment for all Taxes Other than Federal Income
Taxes is a net reduction of $5,013;000.00.
e. Federal Income Taxes
The adjustment to the Cost of Service for Federal Income
Taxes is a reduction of $65,507,000.00.
f. Return
The rate of return on equity is 14.75 percent. The rate of
return on invested capital is 11.58 percent.
2. Invested Capital
The invested capital is determined to be $4,764,986,000.00.
3. Adjustments to Invested Capital
The adjustments to invested capital include a reduction of
$5,496,000.00 in Plant in Service, an increase of $1,243,000.00 in )~
Construction Work in Progress, a reduction of $2,713,000.00 in Ui
Fuel Oil Inventory, a reduction of $82,702,000.00 in Working Cash
Allowance, a reduction of $64,625,000.00 in Deferred Limestone
Cost, a reduction of $8,880,000.00 in Unrecovered Storm Loss, a
reduction of $29,878,000.00 in Deferred Taxes, and a reduction of
$5,280,000.00 in Other Cost-Free Capital.
4. Revenue Deficiency
The overall non-fuel revenue deficiency if $159,759,000.00.
5. Rate Structure
a. Residential
The rate structure for the residential customer
class is:
Summer: Customer Charge of $9.00 per month, which
includes 250 kwh
all kwh over 251 kwh at 6.2460~ per kwh
plus: fuel charge of 2.0854~ per kwh for all
kwh
Winter: Customer Charge of $9.00 per month, which
includes 250 kwh
251-1,000 kwh at 6/2460~ per kwh
over 1,000 'kwh at 2. 9655<t per kwh U1
plus: fuel charge of 2.0854~ per kwh for all
kwh
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b. All Other Customer Classes
The rate structure for all customer cl asses other than
residential is that proposed in the Company's Statement lof Intent
and Peti ti on for Authori ty to Change" Rates.
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I I. 'Rel ated Issues
1. The Ci ty Counci 1 hereby authori zes the Company to uti 1 i ze the
following deferred accounting ,treatment for certain expenses related to
Limestone Unit 2: Beginning ,on the, commer.cial in~service date as
defined by the Public Utility Commission, of Texas C':commercial in-
service"date") for Limestone Unit 2 and continuing for:a period of time
ending eighteen (18) months after that in-service date or upon the
effective date of rates set as a result of the Company's next filed
statement of intent to change rates, whichever ending date is sooner,
the Company may place into a deferred account all: depreciation expense,
tax expense, and operation ~nd maintenance expense.,incurred during that
time period by the Company, related, to, Limestone Unit 2, and upon
revi ew, approval, and adju,stment .:'of such" deferred expenses by the Ci ty
in the proceeding considering the, Company's next filed statement of
intent to change rates~ these deferred amounts shall be amortized over
a period of ten years from the commercial in-service date of Limestone
Un it 2.
The City Council hereby orders the, Company, upon the, commercial in-
service date for Limestone Unit 2, to transfer its total investment in
Limestone Unit 2 from Construction Work in Progress to Plant in
Service. The City reserves the, 'right to: exclude, from rate base or
other recovery any portion of the, expenditures ,from the plant,AFUDC,
capitalized expenses, capitalized depreciation or other capitalized
costs related to Limestone Unit 2 that, the City determines is not used
and useful, has been imprudently spent or .incurred, or i.s in any other
way not, lawfully includahle. in rate base;"or ,other recovery. The City
further reserves the right to determine the reasonableness and prudence
of any deferred expenses in the rate order in which rate base treatment
for Limestone Unit 2 is requested.
,The Ci ty Counci 1::. finds: that ,all of the; :Company' 51 d'nvestment in
Limestone Unit 2 as o~f :DEmember, 31, 1985,",;j-s present'ly in rate,base as
Constructi on Work, in Progress., l ;,; ,: I :' , '
The City Council hereby orders that the Company shall not, after
the, date of final ,passage 'of this ordinance, accrue any 8FUDC on any
Limestone Unit 2 investment. ' "
,2. ' The City Council, hereby orders ,the Company, after the date of
final passage OfT this: ordinance, : to i'nclude in reconcilable. fuel
expense for any fuel purchased":from.an,affi:liate,only'ftueLprices at
cost, and ,t'O exclude any re;turns on 'or of equHy.. I ' ./ '
3. The City: has incurred expenses for ,the pu.fjposeofconducting
investigations, presenting evidence,.-: advis',ing ''-andl r,epres,enting the
governing body, and assisting with litigation in connectjon with the
request of the Company 'to 'change its rates~ The,' Company shall
reimburse the City for the reasonable costs of such servi ces pursuant
to Section 24(a) of thePublic:Uti'lity,Regulatory.Act, TE,X. REV;,iCIV.
STAT. ANN. art. 1446c (Vernon Supp. 1986). The Mayor shall forward to
the Company an invoi ce or invoi ces for such costs together with a
request for reimbursement. The Company shall reimburse the City for
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such costs incurred within thirty days after having received each such
request.
III. Conclusions
1. The City has original jurisdiction over this case pursuant to
Section 43 of the Public Utility Regulatory Act.
2. The Company has the burden of establishing its revenue
defi c i ency under its present ra tes and of es tab 1 is hi ng the amount of
such deficiency that will be collected' under-' its proposed rates
pursuant to Section 40 of the Public Utility Regulatory Act.
3. The rates prescribed herein will allow the Company to recover
its operating expenses together with a reasonable - return 'on its
invested capital, pursuant to provision' 'of Section 39 of ~he Publ ic
Utility Regulatory Act.
4. The rates prescribed herein will permit the Company a
reasonable opportunity to earn a re'asonable return upon the invested
capita 1 used and usefu 1 in renderi ng servi ce to the ,pub 1 i c over and
above its reasonable necessary operating expenses as provided by
Section 39(a) of the Public Utility Regulatory Act.
5. The rates for electric service set forth herein provide just
and reasonable and not unreasonably preferential, prejudicial, or
discriminatory rates, and are sufficient, equitable, and consistent in
application to each class of consumer, as provided by Section 38 of the
Public Utility Regulatory Act.
Secti on 3. The City Counci 1 hereby determi nes, prescri bed,
establishes and authorizes the increased rates for sale or supply of
electric service by the Company within,the corporate limits of the City
of West University Place, Texas, as set out in this' ordinance. Such
increased rates shall become effective as to each customer on or no
later than the thirtieth day after the date of final passage of this
ordlnanc'e. The Company shall be authorized to collect such rates until
such time as they may be changed, modified, amended or withdrawn in
accord~hte with applicable statutes and otdinances~
Section 4. The City Council hereby authorizes and directs the
City Secretary to serve the Company wi th a certi fi ed copy of thi s
ordinance which is the final determination and order of the City.
Section 5. The Company shall, within ten days following the final
passage and approval of this ordinance and' thereafter whenever required
by appl icable . statutes and ordinan'ces ahdwhenever requested by the
Mayor, file a complete schedule of' rates and tariffs with the Mayor
setting 'forth all of the Company.s rates and charges for utility
servic~ then in effect. The Mayor is authorized to review, approve and
require revisions to the tariff if he determines it not to be in
accordance with this ordinance.
Section '6. Nothing contained in this ordinance shall be construed
now or hereafter as limiting or modifying, in any manner, the right and
power of the City under the law to regulate the rates and charges of
the Company. .
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Section 7. All ordinances or parts of ordinances in conflict
herewi th, are repealed to the ~xtent of the confl;i <:tJon,ly.
Secti on 8. In the event that the Company appea 1 s from thi s order
setting electric rates for the Company, the City hereby waives written
noti ce of the heari ng befor.e the Pub] i c, Uti 1 ity Commi ss i on of Texas on
such appeal.,.
With respect to any such appeal, the City Council hereby
authorizes the City Attorney or his designees to represent the City and
its citizens in any and all matters in connection with such appeal and
to take any and all actions necessary and incidental thereto and to,the
resolution of the matters subject to such appeal, all as may be in the
best interests of the City.
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Section 9. If any provision, section, subsection, I sentence,
clause, or phrase of this ordinance, or the application of same to any
person or set of circumstances is for any reason held to be
unconstitutional, void or' invalid, the validity of the remaining
portions of this ordinance or their applicatitin to,othe~ persons or set
of circumstances shall not be affected,'thereby, it being the intent of
the City Council in adopting this ordinance that no portion hereof or
provision or regulation contained herein shall become inoperative or
fail by reason of any unconstitutionality, voidness or invalidity of
any other portion hereof, and all provisions of this ordina,nce are
declared to be severable for that purpose.
Section 10. The City Council officially finds, determines and
declares that a sufficient written notice of the date;lhour, pla.ce and
subject of each meeting at which this ordinance, was discussed~
considered or acted upon was given in.the manner r.equi'red by the. Open
Meetings Law, TEX. REV. CIV. STAT. ANN. art. 6252-17, as amended, and
that each such meeti ng has been open to the pub 1 i c as requi red by 1 aw
at all times during such discussion, consi.deration and action. The
City Council ratifies, approves and confirms such notices and the
contents and posting thereof.
Section 11. The public importance of this measure and the fact
that it is in the best interest of the City and its inhabitants for the
City Council of the City of West University Place, Texas, to consider
the rates to be charged by the Houston Li ghting & Power Company as
herein set out at the earliest possible date, constitute and create an
emergency and an urgent public necessity requiring that this Ordinance
be passed and take effect as an emergency measure, and a state of
emergency is hereby declared, and this Ordinance is accordingly passed
as an emergency measure and shall take effect and be in force
immediately from and after its passage.
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PASSED AND APPROVED, this the" 14th. day of July., 1986.
Councilmembers Voting Aye:,
Councilmemb~rs Voting No:
Councilmembers Absent:
..,Mayor Parks, Council members
Higley" Cummings~ Schwartzel
None
Counc i 1 member Bryan,
, :
Michael L. Parks, Mayor.
City of~West University Place~ Texas
ATTEST:,
Audrey' Nichols, City,Secreta~y
City of West University Place, Texas,
(SEAL)
Approved as to Form:
James L. Dougherty, Jr .-,
Ci ty Attorney .
City of West University Place;, Texas
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EXHIBIT A
PAGE....L. OFA
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SCHEDULE 2
CITY Of 10USTOI
10USTOI LlSHTlIG , ;oIlEI CORPAIY
CALCUUTlOI OF llClUSE
TEST YUI EIDED DECElBEI 31. 1'15
(000'.)
JII[ . .UP CITY cln 'ES' YEU
Ill. DESCRIPTlOI :IUU[$1 ADJUSTIlEI' IUE OIDEI as ADJUSTED
IEnlUE IEOUIIEIlEI' 'n.460.500 (Sm,ID2) U.OI7.'11 IJ.5DO.US
LESS: FUEL IEYEIUES (1.2&5.110) 177.151 (1.0....52) (1.151.171)
.IICIPAl STREET USE IEYEIUES (10.117) 1.061 (71.04i) (,".517)
OlIlEI InuUE$ (25.010) U.IU) (21.331) (12.519)
laSE IAlE lEVER1/[ IEOUIIEIlEI' 12.011.413 ($117.111) 11.101.11' Il.7U.'01
IICIUSE .11 eaSE RATE IEYEIUES. 1151.75'
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EXHIBIT A
PAGE..LOF.J2..
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SCHEDULE 3
CITY OF 10US tOI
10UStOl UGHtJ IG & 'OWE. CORPIIT
o.nlUOIS & ..IITnIICE [lI'(ISE ADJUStllUU
tESt 'lEAl EIDEO DECElln ;11, IllS
(ODD'S)
UIlE IL'" City CltT
10. OESCRlI'tlOI . I'(R IDOlS ADJU$tlI[lT lEoum ADJUSTltlT laTE OIDEI
--
I SALARIES C IIAGES $226,120 $14,104 $241,024 ($4,111) 1236,406
2. lRPLOTf:E IEIltFltS 2'.511 (48') 2'.023 (lIS) 21,207
3 11lESTOllt OI'(UTlIG [lI'(ISES 152 12,330 12.4'2 (I,lm 10,513
4 S TORI OARAGES 2,016 (102) 1,314 0' 1.314
5 STon DAUGES-577' 23. Ite 1,234 0 1,234
I IUICIPAL STREET IISE FEES 11,711 (1',1&1) 71.744 (1,6") 71,048
7 UTE CASE [II'( I$ES "I 757 1.255 (1.059) III
I EEl OUES 414 (13) m (331) 0
I Reo 11.721 1,05' , 12.77' 0 12.77'
10 AIORT. or OTHER DEF. CMARGU . 204 0 204 0 204
II I..AG[IIE IT AUD n 0 17. .11 (152) ;126
12 UASE AIll IEITAL 5.40' 21. 5,116 (JII) 5,36'
13 UICOLUCTlIU ACCOUITS 14,41' 102 15,321 (141) 14.314
14 ADVERT., COITR. COOl. 2.'03 714 3.511 (13) 3,574
IS UGISLATlVE ADVOCACV I (') 0 0 0
1& SOCIAL DUES 25 (25) 0 0 0
11 POWER MIlEEi.lIG ',677 (6,155) 1.122 (m) 1,125
(\ II ARORt. OF UIU101lE DEF. CHRGS 0 7,056 7.056 (1,056) 0
I i I' OTHER OU [II'( ISES 1'2.710 0 112. ,.0 0 1'2,7'0
I 20 REOUCTlOI JI 'IS OU U'. (',4") (',4")
I
I~ 21 IE II '1 LUIG PROCEDURES (255) (255)
22 ADO'L. UGJSLATlYE ADVOCACY (17) (17)
23 UISUPPORtEO C UCESSJY[ OFFICER UP. . (IS) (IS)
24 LEASE C RElTAL [II'( ISES (51) (511
25 FUEL REFUII) COSTS (m) (241)
21 .ALAIOFF UP. TO tIIJp (II) (16)
27 STP #2 UP. IECLASS. to, UTE CASE UP. (IDO) (100)
2. IOI-aECURlJ III IAUTElAICE (1.550) (1.550)
It AFFJLATE '.Al6[$ (531) (SU)
30 UPLOTf:E STORE UI'(I$ES (JIl) (111)
TOTAL [lI'(I$ES 15'4.575 m,m 1105.190 ($45.097) 1560.5'3
EXHIBIT A
PAG~OFJL
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SCHEDULE 4
, ellt' Of' 10USTO.
10USTO. UGHTUG , POIlU COI'Ut'
SUIIARY or FUEl COSTS
lEST YEAR [IIlEO O(C(lI(I 31. IllS
(000',5 )
LJI(
10. DESCII.P1l01
IU.
IEoum
ell'
AOJUSTlUT
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1m oaOER
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1 IECOYEUlLE COSTS $175.322 ($121,21') 17~.043
2 lASE IUE FUEl 112. .32 (14..02) '7. .30
3 10TAl FUEL ''',1~ (135.111) '51, .73
PURCHASED POilU
4 IECOYUAllE COSTS 3'0,41' (55, .71) 334,10'
5 'ASE 1m PURCHASED POilU 141.761 14. .11 113.11&
I 10TAl PURCHASED POilU 53'.25& (40,'11) 411.215
7 10TAl FUEl Alii PURCHASED POilU 11.527,410 (SU7,142) 11,350.261
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I lASE UTE FOE l S261.100 IU 12'1.111
. FUEl InUUE 11.215.110 (Sm,15') II.OIS.'52 --,
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EXHIBIT A
PAGE-L OF la..
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84
IORUIG CAPITAL USES
'..IIIUI '"qul r..lllt
IORIIIG CAPIUL SOURCES
hll
'yreha... 'ow.r
Other OCI
f ,'.ra! I.e... r.lt.
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CITY Of 10UStOl
IDUSTOI UliHtUG l POilU CORPAIf
SUIIIIARY Of CASH IORIJ IG CApnAl
(000 'S)
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SCHEDULE: 6 U
IUl tlPUEtl CIlSI IORlIIG
IECDIIIIUDEO (LUO)/LAG. (LUO)/LAG OAfS CAPItAL
AIIOUI1 DUS /365 OAfS IEOUIIUUt
$3,017.1"
3'.25
O. DIU
$.30I.n5
SUI,'U (21.47)
"I,2SS (37.50)
5&0,513 (17.54)
1'0,131 (.U!)
",'07 (J'0.5I)
247,571 (16.13)
21,311 (41.13)
[StlUTED CAPITAl to FUUeE tHE
In LUO II IECOYU OF COST Of SUYlCE
Caah C:..p.ftllllt
..olel,.1 FrallChh. Fan
CASH IOIIl IG CAPITAL IEOUJIEllElT
71,041
(221.50)
EXHIBIT A
PAGE-ILOFA
(0.0107) (SU,714)
(0. J027) (51,1.5)
(0.0111) (2&..41)
(11.2737) (43,'34)
(Mtu) (".111)
(0.23.0) (5',41') :l
(0.12") (3,715) U
',5'4
1,131
(D.l210) ('4."')
($3',2'1)
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, Cost 0' C.pital
'.
Hou.ton Lighting & pow.~ Comp.ny
1000.)
~
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Percent of W
COMpon.nt' 8alal'le. Total Cost C,
........... -.-.-.. .-.-...-.- .... .'
Lc.I'lY TIl'''hl Dl!bt .2,697,412 e.1 43.101/. 8.76" ef)
Pt''''' ...t'",d Stock .341, ,348 Ibl 5.Io5,c 8.49,c Cg)
COM.~on Equity "2, 72S, 464. leI 43. 551/. 14.75"
fTC. .494,082 Cd' 7.891. 11. 581.
.-.-.----. _ts_=_.
fe.tal "6,258,3('6 C.I 1 ('0. (I('l/.
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lal RFl HOU7-42 P.g. 1.
Ibl Hr.l HOU 7-42 Pag. 1.
Ce) nFl HOU 7-4a Pag. 1.
Idl A..pon.. to on-sit. int.....og.to..y.
leI AFt HOU 7-42 Pag. 1.
I , I .nt: t HOU7-42 Pag. 3.
Ig) AFt HOU 7-42 Pag. 5.
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cny Of' 10US TOI
10UStOl lIGHTU. C POIIER cOIPur
IEYElUE If UTE CLASS - 'EI cny UTE OIOEl
lnt Y..~ hdlftl DIC..b.~ 31. IllS
(000 'S)
Lt..
10.
UTE CLASS
IS
- IESIDEIITlAL SERVICE
2 IGS - IISCElLAIEOUS IEIElIL SEAnCE
3 LGS - LUGE GnUll ~UYlCE
" LOS-l - LUGE O'ERHE AD SElnCE (II
5 LOS-I - LAI.E O'ERHEAD SERYlCE (II
, liP
IUAS-IE II lIE lICO POIIER COIPAIT
IS
- IITUIUpnBlE SEAnCE
I S'l ;. StIEEt AIO PIOTEcn'E lI.HUIG sunCE
t Gl - GUllO LIGHTUG SERVICE
10 TOTAL ELECTRIC InEIUES
11 OTHEI O'Eunl. IE'EIUES
12 TOTAL OPUAnl' IEYEIUES
EXHIBIT A
~E: g &*,~
CIn
UTE OIDEI
51,153,131
71t. lID
470,555
1I0.ltO
325,200
51, ".
60. "I
25,314
1,214
3.057.010
30.&01
53,087,618
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It is determined that Sheet No. El, Terms and Conditions for
Sale fo Electric Service in Section v, Service Rules and
Regulations, of the Company's Tarriff for Electric Service shall
read as follows:
.Section V-Service Rules and Regulations
Terms and Conditions for Sale of Electric Service
Sheet No. El
Page 1 of "
HOUSTON LIGHTING l POWER COMPANY
HLlP 90
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TERMS AND CONDITIONS FOR THE SALE OF ELECTRIC SERVICE
APPLlCAB~E TO RATE SCHEDULES RS. RTD. MGS, LGS. LOS. ,ISA and ISB
1. Electric service will be supplied in accordance with these terms and
conditions (as supplemented by the Company's Service' Standards and ,Service
Rules and Regulations which are by reference incorporated herein). and any
changes required by law. and in accordance with such applicable rate
schedule or schedules as may, from time to time, be established by the
Company. However, in the case of Customers whose electrical service
requirements are of' unusual size or characteristics, additional rate and
contract or service' arrangements may be required. These terms and'
conditions constitute a selected list of rules from the Company's Service
Rules and Regulations. Upon request, 'Customer may obtain at any Company
office information on Company's policies' regarding the extension of
service, refusal to serve, service discontinuance, Customer credit,
billing and metering. '
2. Company will make reasonable provisions to. supply steady and continuous
electric 'service. consistent with the Customer's class of service. but l-r
does not guarantee the electric service against fluctuations or
interruptions. Company will not be liable for any damages occasioned by
fluctuations or interruptions unless it be shown that Company has not made
reasonable provisions to supply steady and continuous electric service,
consistent with the Customer's class of service. and in the event of a
failure to make 'such reasonable provisions Company's liability shall be I 1r
limited to the cost of necessary repairs of physical damage proximately
caused by the service failure to those electrical facilities of Customer
which were then equipped with the protective safeguards recommended or
required by the then current edition of the National Electrical Code. In
no event shall Company be liable for damage occasioned ,by fluctuations or
interruptions or failure to begin supplying electric service, caused by an
act of God, the public enemy, unavoidable accident, "fire, explosion,
strike, riot, war. order of any court or judgment granted in any bona fide
adverse legal proceeding. or action or order of any commission or tribunal
having jurisdiction in the premises, or, without limitation by the
preceding enumeration, any act or thing reasonably beyond its control, or
for interruptions (when Customer has been given reasonable notice) which
are necessary for inspection, repair or changes in Company's generating
equipment or its transmission or distribution system. Company may,
without liab~lity therefor, interrupt service to any Customer or Customers
in the event of an emergency arising anywhere on the interconnected system
of which it is a part, which emergency poses a , threat to the Irea power
supply if, in its sole judgment. such action may prevent or alleviate the
emergency condition.
3. For ,the mutual protection of the Customer ,and the Company, only luthorized
employees of the 'Company are permit~ed to make and energize the
connections between the Company's service wires and the Customer's service
entrance conductors. The Company does not ass~me any duty of inspecting
the ,Customer's lines, wires. switches or 'other equipment and will not be
Revision Number: 8 th
Effective:
EXHIBIT A
Pl&<?llL-' Q~_12
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HOUSTON LIGHTING l POWER COMPANY
HLlP 90
responsible therefor. To the extent allowed by law, 7the customer agrees I..
to defend, indemnify and hold Company Ind its Igents harmless from Ind
against .11 claims, causes of Iction, liability, the losses, costs Ind
expenses of Iny kind for personal injury, death and property damage
arising out of or resulting (a) from the design, installation, operation
or lIaintenance of the lines, wires, switches or other equipment on the
Customer's side of the point of delivery or (b) from energization by the
Customer of the ,Company's lines through operation of equipment within the
Customer's control without 24 hours advance notice to the Company's
dispatcher. The obligation to indemnify pursuant to (a) Ind (b) shall
apply without regard to the negligence of the Company or its agents if the
negligence of both the Customer and the Company or their respective Igents
,were proximate causes of such personal injury, death or property damage,
but shall not apply when prOXimately caused by the sole negligence of the
Company or its agents.
.
4. The Company will supply to one premises only one point of delivery and
only one of the standard types of 'service listed in the Service Standards
or one of the available transmission voltages, Ind Customer's installation
is to be so Irranged that the Company can measure the Customer's electric
service with one lIeter. The Company will not install and Ilaintain Iny
lines and equipment on the Customer's side of the point of delivery except
its meter. The Customer will provide, in accordance with the Company's
Service Standards and free of expense to the Company, locations for the
installation of the Company's lIeter and other equipment and Icceptable
right of way for facilities erected solely to make service available to -
Customer. The Customer will install and lIaintain 111 his wiring In~
apparatus in Iccordance with good electric practice, all applicable laWfuu'
regulations, Ind in such condition and manner as not to endanger person1
or property, or to cause impairment of the Company's service to th\
Customer, or its other customers; Ind the Customer will obtain a,j
necessary permits and certificates, of inspection covering his electric
installation. The Customer will not permit any other party to use the
service supplied to the Customer by the Company, or extend or connect his
installation to lines Icross or under a street, Illey, lane, court or
other'public or private space in order to obtain service for other
premises. even though such other premises be owned by the Customer. except
in the case of Customer owned street lighting installations.
5. Certain types of equipment used by Customers have electrical
characteristics which lIay cause serious fluctuations of voltage and
interfere with the service of the Company to its, Customers. In such cases
the Company lIay decline to serve such equipment under the Company's
established rate schedules until the Customer having such equipment. has
provided It his expense. suitable Ipparatus to hold to reasonable lillits
the effect of such fluctuations. Circumstances lIay require such equipment
to be supplied separately from other service, and in such event. the
Company lIay require, additional contract arrangements and construction
charges and may lIeter and bill such service separately from other service
supplled to the Customer. Where the Customer owns generating equipment
and proposes to operate this equipment in paral'el with and concurrent
Revision Number: 8 th Effective:
EXHIBIT A
PAGEltL OF..n.
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HOUSTON LIGHTING 1 POWER COHPANY
HLlP 90
:
with electric service supplied by the Company, the Customer must obtain
consent from the Company.
6. The duly authorized representatives of the Company are to have access at
all reasonable hours to the Customer's premises for the purpose of
inspecting Company's wiring and apparatus, erecting, removing or replacing
its facilities, reading its meter and for all other purposes connected
with the supplying of electric service.
7. Company wil~ upon Customer's request test the accuracy of Company's meter
used in the metering of Customer's, service. Such test will be free of
charge provided Customer has not requested a similar test within I period
of four years or in any case if such meter is found to be not accurate
within the accuracy standards ,established by the American National
Standards Institute, Incorporated. The maximum charge for testing a
residential Customer's meter shall be fifteen dollars ($15.00).
Additional provisions of Company's Meter Policy, including re-billing, are
contained in Company's Service Rules and Regulations.
8. The Company may require a deposit, if in accordance with Customer Credit
Policy, the credit of an applicant for service has not been established
satisfactorily to Company. For permanent 'residential, commercial and
industrial customers, such deposit shall not exceed one-sixth (1/6) of the
Customer's estimated annual billings. Company will pay interest on
required deposits at an annual rate established in accordance with the
provisions of Tex. Rev. Civ. Stat. Ann. art. 1440a (Vernon's Supp. 1985).
For amounts held on deposit with the Company prior to January I, 1986, the
annual interest rate shall be 6~. For amounts held on ,deposit with the
Company during calendar year 1986, the annual interest rate shall be
7.29%. 11 /t#p.;.;,/Pf /;,#Jf41f./If./;tj.;,~/~If.'V;./f.'f.Itf.f/I.'JlI;4#/;,f /f##_f./~f I D
_~p;,tlf.J/;.;,/I;.f.~t#f./"'j.f;.l;.f./lt/t~r.##~1 The Company reserves the right
(SUbject to Customer Credit Policy) to require In additional deposit, when
in accordance with Public Utility Commission rules, the Customer's
deposit is insufficient. Any deposit shall not preclude the Company
(subject to Service Discontinuance Policy) from terminating the Agreement
for Service or suspending the supply of electric service to the Customer
for any failure in the performance of the Customer's obligations under ~he
Agreement for Service. Additional provisions of Company's Customer Credit
Policy are contained in Company's Service Rules and Regulations.
9. Charges for electric service will normally be based on a monthly period of
approximately 30 days but not more than twelve (12) bills shall be,
rendered in any yearly period.
10. In the event Customer's service under this Agreement is suspended (such
suspension being subject to Company's Service Discontinuance Policy)
because of tampering with Company's meters, bypassing the same, failure to
Revision Number: 8!h
Effective:
EXHIBIT A
PAr.F' \\ t'lF' I;)
t~lTr1
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90
Section V-Service Rules Ind Regulltions
Terms Ind Conditions for Slle of Electric Service
HOUSTON LIGHTING I POWER COMPANY
Hl&P 90
pay a delinquent 'account, , fl11ure to' comply with deposit or guarlntee
Irrangements (when required by Customer Credit Policy), or, if I
reasonable opportunity to remedy the s1tult1on, violation of Company's
rules pertaining to the use of service in I ~anner which interferes with
the service of others, endangers persons or property, or is due to the
operation of nonstandard equipment, all guarantees, '.'nimums and other
contract charges for the remainder of the term of the Agreement shall
thereupon become due and plyable by Customer. Company Igrees to Iccept
such sum IS and for liquidated damages for such losses IS Company .ay
suffer by reason of Customer's breach of the Agreement. An LOS Customer
shall have, as an alternative, the right to make payment of such charges
or billings 'as they fill due under the terms of the LOS Igreementi
provided, however, in the event such LOS Customer shall fail to pay any
such charge or billing in a timely manner, Company may, then, It its
option, require 'payment of III charges or billings in, their total sum for
the unexpired term.
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Plge 4 of 4
11. Upon the expiration of an Agreement for Service, the Cqmpany may, without
liability for injury or damage, dismantle Ind remove III flc111ties
installed for the purpose of supplying electric service to the Customer,
and shall be under no further obligation to serve the Customer at the
point.
12. Agreements for Service shall inure to the benefit of and be binding upon
the successors and Iss1gns of the Customer Ind the Company, but no
assignments by the Customer shall be binding upon the Company unti~l
accepted in writing by the Company. .. !
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FYHIRIT A
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