98-005 ORD APPROVE RETAIL BASE RATE REDUCTIONS FOR TX UTILITIES ELECTRIC COORDINANCE 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.
Section 6. That, notwithstanding any other provision of this Ordinance, the rates
authorized for electric service in the City of Paris shall not exceed the lowest rates available to
residents of any other municipality served by TUEC finally resulting from TUEC's filing of the
Stipulation and any other appeals from City ordinances connected therewith.
Section 7. That it is hereby officially found and determined that the meeting at which this
Ordinance is passed is open to the public as required by law and that public notice of the time,
place, and purpose of said meeting was given as required.
Section 8. This ardinance shall become effective April 1, 1998.
PASSED AND ADOPTED at a Regular Meeting of the City Council of the City of Paris,
Paris, Texas, on this the 9th day of March, 1998.
~
~
Eric S. Cliffo
ATTEST:
Mattie Cunningham, City Clerk
APPROVE AS TO FORM:
T. K. Hay s, Ciry Attorney