98-005 ORD APPROVE RETAIL BASE RATE REDUCTIONS FOR TX UTILITIES ELECTRIC CO

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ORDINANCE NO. 98-005 AN ORDINANCE APPROVING RETAIL BASE RATE REDUCTIONS FOR TEXAS UTILITIES ELECTRIC COMPANY; AUTHORIZING INTERVENTION IN PUC DOCKET NO. 18490; APPROVING A MOST FAVORED NATION PROVISION; FINDING AND DETERMINING THAT THE MEETING AT WHICH THIS ORDINANCE IS PASSED IS OPEN TO THE PUBLIC AS REQUIRED BY LAW; AND PROVIDING AN EFFECTIVE DATE OF APRIL 1, 1998. WHEREAS, the City of Paris is a regulatory authority under the Utilities Code and has original jurisdiction over the rates of Texas Utilities Electric Company (TUEC); and, WHEREAS, TUEC's retail base rates should be adjusted because of changes that have occurred since such rates were last reviewed in PUC Docket No. 11735; and, WHEREAS, on December 22, 1997, TUEC filed with the governing body of this municipality a Petition and Statement of Intent to implement base rate reductions for its retail electric service customers within this municipality, which base rate reductions are components of a settlement reached among various parties set forth in the Stipulation and Joint Application for Approval Thereof (Stipulation) filed with the Public Utility Commission of Texas (PUC) on December 17, 1997; and, WHEREAS, the Stipulation calls for recording depreciation that would normally be charged against transmission and distribution assets as additional depreciation on nuclear production assets; and, WHEREAS, the City of Paris desires on intervene in the PUC's proceeding to review the Stipulation, PUC Docket No. 18490, to ask the PUC to determine whether the provisions of the Stipulation are consistent with sound public policy; NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF PARIS: Section L That the retail base rate reduction tariffs filed by TUEC (Rider RRD - Residential Rate Reduction, Rider GSRD - General Service Secondary Rate Reduction, and Rider RD - Rate Reduction) are hereby approved effective January 1, 1998. The referenced schedules shall remain in effect until such time as they may be changed, modified, or amended by the approval of the Ciry Council. The filing of the rate schedules shall constitute notice to the consumers of electriciry, within this municipality, of the availability and application of such rate schedules. Section 2. That the Ciry of Paris shall intervene in PUC Docket No. 18490 and coordinate its efforts in that regard with other cities through the Steering Committee of Cities Served by TUEC. In this regard, the PUC is encouraged to review the shifting of depreciation from transmission and distribution assets, as called for in the Stipulation, and to determine whether the shifting of depreciation is consistent with sounds regulator and public policy. Section 3. That the action of the City Council of the City of Paris in adopting this rate reduction ordinance should not be construed to mean the City of Paris approves any depreciation shifting procedure as a means for TUEC recovering uneconomic investment in generation plant. Section 4. That nothing contained in this ordinance shall be construed as condoning or accepting any provisions of the Stipulation other than tariffs filed by TUEC with the City of Paris on December 22, 1997, and approved herein. Section 5. That nothing contained in this Ordinance shall be construed now or hereafter as limiting or modifying in any manner the right and power of the Governing Body of this municipality under the law to regulate the rates, operations, and services of TUEC.