HomeMy WebLinkAboutOrd 1499 - rates of HL&P
ORDINANce 1'\0. 1..t99
AN ORDINANCE APPROVING A STIPULATION AND AGREEMENT RELATING TO
THE RATES OF HOUSTON LIGHTI:\fG AND POWER COIvfPANY; DETERMINING
JUST AND REASONABLE RATES TO BE OBSERVED AND IN FORCE WITHIN THE
CITY OF WEST UNIVERSITY PLACE, ORDERlNG RATE REDUCTIONS AND
CREDITS TO RATEPAYERS' BILLS: FIXING THE RATES THAT SHALL
CONSTITUTE THE LEGAL RA TES OF HOUSTON LIGHTING AND POWER
COIvfPANY UNTIL CHANGED AS PROVIDED BY THE PUBLIC UTILITY
REGULATORY ACT; PROVIDING FOR THE FILING OF RATE SCHEDULES AND
TARIFFS AND THE APPROY AL OR MODIFICATION OF SAME; AND PROVIDING
FOR THE REPEAL OF CONFLICTING ORDINANCES; CONT AlNING FINDINGS
AND OTHER PROVISIONS RELATING TO THE FOREGOING SUBJECT;
PROVIDING FOR SEVERABILITY; AND DECLARING AN EMERGENCY
WHEREAS, the City of West University Place, Texas (the "City") has joined with
. the City of Houston and various other municip:;lities comprising the Coalition of Cities (the
I "Coalition") in their respective capacity as regulatory authorities of Houston Lighting and
Power Company (the "HL&P"), as listed on Exhibit "A", have or will have intervened in
Docket No. 12065, ComDlaint of Kenneth D. Williams Against Houston Li~htinQ and
Power Comoanv, and Docket No. 13126. Inauirv of the General Counsel Into the Operation
and Management of the South Texas Nuclear Proiect. currently pending before the Public
Utility Commission (the "Commission"); and
WHEREAS, the City and the Coalition have initiated or will initiate local Section
42 Rate Proceedings that are to be appealed to the Commission and consolidated with
Docket No 12065; and
WHEREAS, the City and the other members of the Coalition and HL&P desire to
I resolve the controversies made the basis of Docket No. 12065 and Docket No. 13126,
including South Texas Nuclear Plant ("STP") outages addressed in that docket, to the extent
ofHL&P's involvement therein and the municipalities' respective local Section 42
I proceedings in accordance with the provisions of the "Stipulation and Agreement" (the
" "Stipulation") signed by parties to Docket No. 12065, a true copy of which is on file in the
City Secretary's office; and
WHEREAS, the public interest will be served by the adoption of an ordinance
approving the Stipulation because it provides for expeditious implementation of just and
reasonable rates, promotes the adequate and efficient provision of service and is in
accordance with applicable law; and
WHEREAS, resolution on a stipulated basis of all the matters set forth therein
would conserve resources, avoid the uncertainties inherent in further litigation and
minimize rate case expenses both in these ctlSCS and in the future;
NOW, THEREFORE, BE IT ORDAlNED BY THE CITY COUNCIL OF THE
CITY OF \VEST UNIVERSITY PLACE, TEXAS
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Ordinance 1'\0 1/;99
Section 1. The facts containeJ in ihe recitals hereto are hereby found to be true
and correct. Further, the City Council finds that the existing rates of HL&P, after
reasonable notice and hearing, are unreasonable and shall be decreased to reflect the
reductions and credits hereinafter ordered. The rates resulting from such reductions and
credits are hereby determined to be just and reasonable rates to be observed and in force
within the City.
Section 2. All terms and conditions specified in the Stipulation are further
hereby incorporated by reference as though set forth verbatim herein and are hereby
approved and ratified, including without limitation the provisions contained and specifically
I set forth hereinbelow. The Mayor, or in the absence of the Mayor, the Mayor Pro Tern, is
I hereby authorized to execute all related docllinents on behalf of the City of West University
I Place, Texas, and to take all actions nece:,salY to dfectuate the City's intent and objectives
I in approving the Stipulation in the event of changed circumstances. The City Secretary, or
in the absence of the City Secretary, the Assistant City Secretary, is hereby authorized to
I attest to all such signatures and to affix the seal of the City to all such documents. The City
Attorney is hereby authorized to take all action necessary to enforce all legal obligations
under the Stipulation in concert with the Coalition of Cities or otherwise without further
authorization from the City Council.
Section 3. It is hereby ordered that HL&P shall decrease the base rates it
charges for electric power and energy sold within the City by the amount of $62.2 Million
annually, effective January 1, 1995.
Section 4. It is further order.2d th~t I-:LL&P is prohibited from Increasing its base
rates from January I, 1995, through December 31, 1997, subject to exceptions for the
occurrence of certain force majeure events as specified in the Stipulation
Section 5 It is hereby ordered that HL&P's fuel factor be reduced by $199.5
Million annually. It is further ordered that HL&P's power cost recovery factor be further
reduced by $173 Million annually
Section 6. It is hereby ordered that HL&P's ratepayers within the corporate
limits of the City receive a one-time bill credit of $70 Million related to fuel reconciliation
issues. It is further ordered that HL&P ratepayers receive a one-time bill credit of $1 08
Million related to fuel cost over collection.
Section 7. It is hereby ordered that HL&P file with the Director of Finance of
the City of West University Place and with the City Secretary, Rate Schedules and Tariffs
consistent herewith within 30 days of the etfective: date hereof.
Section 8. All prior Ordinances ofth,~ City inconsistent with the terms and
conditions hereof are hereby repealed to the extent of the inconsistency and are of no further
effect.
Ordinance No \ 499
Section 9 If any provision, section, subsection, sentence, clause or phrase of
this ordinance or the application of same to any p~rson 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 application to other persons or sets of circumstances shall not be
affected thereby, it being the intent of the Cily Council in adopting this ordinance that no
portion hereof or provision or regulation contained herein shall become inoperative or fail
by reason of any uncol1stltul iOllality, voidness or invalidity of any other portion hereof, and
all provisions of this ordinance are declared to be severable for that purpose.
Section 10 The City Council officially finds, determines, recites and declares
that a sufficient written notice of the date, hour, place and subject of this meeting of the
City Council was posted at a place convenient to the public at the City Hall of the City for
the time required by law preceding this meet:ng, as required by the Open Meetings Law,
Tex. Govt. Code Ann., Chapter 55] (Vernon] 99(1); and that this meeting was open to the
public as required by law at all times during which this ordinance and the subject matter
thereof was discussed, considered and formally acted upon. The City Council further
ratifies, approves and confirms such written notice and the contents and posting thereof
Section 1], The public importance of this measure and the requirements of the
law 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 ?ccordingly passed as an emergency measure and shall take
effect immediately upon adoption and signature.
PASSED AND APPROVED this 271!.Ldny ofMl!Ji..Q, 1995.
Voting Aye
Voting Nay:
Absent:
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Bill Watson
Mayor
s Dougherty, Jr.
City Attorney
ATTEST:
1t~ $fd~
1< ylynn Holloway
City Secretary
(SEAL)
I,
Bay town
Bellaire
Brookshire
Brookside Village
Clute
Deer Park
El Lago
Fulshear
Galveston
Houston
Ordirnnce No. 1499
EXHIBIT A
LaPorte
Meadows
Pasadena
Santa Fe
Seabrook
Simonton
Surfside Beach
Thompsons
Webster
West University Place
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