Ordinance No. 2,583ORDINANCE NO. 2583
AN ORDINANCE PRESCRIBING AND APPROVING RATES TO BE
CHARGED BY HOUSTON LIGHTING & POWER COMPANY IN THE CITY
OF BAYTOWN, TEXAS; PROVIDING FOR AN EFFECTIVE DATE FOR
SUCH RATE SCHEDULES; PROVIDING CONDITIONS UNDER WHICH
SUCH RATE SCHEDULES MAY BE CHANGED, MODIFIED, AMENDED
OR WITHDRAWN; CONTAINING FINDINGS AND PROVISIONS RELATED
TO THE SUBJECT; AND REPEALING ANY OTHER ORDINANCE OR
PART OR PARTS THEREOF WHICH MAY BE IN CONFLICT.
WHEREAS, on July 14, 1978, Houston Lighting & Power
Company filed with the City of Baytown a request for an
increase in rates to be charged within the City in the
amount of 174.9 million per annum on a system -wide basis, an
increase of approximately 12.6 %; and
WHEREAS, the City suspended the effective date of such
proposed rate increase for 120 days beyond August 21, 1978;
and
WHEREAS, the City Council entered on a hearing to
determine the propriety of the rate increase; and
WHEREAS, the City Council is of the opinion that the
Company's rate increase request is unreasonable and excessive,
and a lesser increase in rates should be approved for the
Company; and
WHEREAS, the City Council finds that a total increase
in the amount of $51.945 million will assure
rates which are just and reasonable to both consumers and
the Company; NOW THEREFORE,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
BAYTOWN:
Section 1: That an increase in the rates of Houston
Lighting & Power Company for electric power and energy sold
within the City of Baytown be approved in an amount such
that the adjusted total system -wide operating revenues for
the Company be increased $51.945 million per
annum, based on the adjusted test year ending March 31,
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1978, which constitutes an increase of approximately 3.68%.
Such rates as are approved in accordance herewith, are those
under which said Company shall be authorized to render
electric service and to collect charges from its customers
for the sale of electric power and energy within the corporate
limits of the City until such time as said rate schedules
may be changed, modified, amended or withdrawn, with the
approval of the City Council.
Section 2: That the Company shall determine the cost
of service for each customer class by the plant utilization
method of cost allocation and shall establish rates and
tariffs so that each class contributes to the overall rate
of return in the following manner:
High Voltage - return 1.25 times the
total system return
Large General Service - return 1.25 times the
total system return
Miscellaneous General - return 1.15 times the
Service total system return
Residential and Street - sufficient for the sum of
Lighting all classes to equal the
total system required.
Section 3: That the Company shall, within 10 days from
the final passage of this ordinance, file with the City of
Baytown a revised Schedule of Rates and Tariffs setting
forth those rates, tariffs, and charges based upon an increase
in total operating revenues as prescribed herein. Such
Schedule of Rates and Tariffs may be modified or amended by
City Council within 10 days from the date of filing, otherwise
same shall be considered approved as filed. Said rates, as
approved, shall be effective from and after final passage of
this ordinance and shall apply to each customer of the
Company within the City from and after each such customer's
first regular meter reading following the effective date of
this ordinance.
WE
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Section 4: That the Schedules of Rates and Tariffs
shall be subject to a monthly adjustment for changes in fuel
calculated according to the formula presently in effect.
That the monthly adjustment for changes in cost of service
shall be discontinued.
Section 5: That the action of the City Council enacting
this ordinance constitutes, on the date of its final passage,
a final determination of rates for sale of electric power
and energy by Houston Lighting & Power Company within the
City of Baytown in accordance with Section 43(e) of the
Public Utility Regulatory Act.
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 Houston Lighting & Power
Company.
Section 7: All ordinances or parts of ordinances in
conflict herewith are repealed to the extent of the conflict
only.
Section 8: This ordinance shall take effect immediately
from and after its passage.
INTRODUCED, READ, and PASSED by the affirmative vote of
the City Council on this 21st day of November
ATTEST:
BEN P. HALL, City Clerk
APPROVED:
S�0# A466-146�
SCOTT BOUNDS, City Attorney
METT 0. HUTTO, Mayor
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, 1978.