Ordinance No. 7,260950323 -1
JitDINANCE NO. 7260
AN ORDINANCE APPROVING A STIPULATION AND AGREEMENT
RELATING TO THE RATES OF HOUSTON LIGHTING AND POWER
COMPANY; DETERMINING JUST AND REASONABLE RATES TO BE
OBSERVED AND IN FORCE WITHIN THE CITY OF BAYTOWN;
ORDERING RATE REDUCTIONS AND CREDITS TO RATEPAYERS'
BILLS; FIXING THE RATES THAT SHALL CONSTITUTE THE LEGAL
RATES OF HOUSTON LIGHTING AND POWER COMPANY UNTIL CHANGED
AS PROVIDED BY THE PUBLIC UTILITY REGULATORY ACT;
PROVIDING FOR THE FILING OF RATE SCHEDULES AND TARIFFS
AND THE APPROVAL OR MODIFICATION OF SAME; PROVIDING FOR
THE REPEAL OF CONFLICTING ORDINANCES; CONTAINING FINDINGS
AND OTHER PROVISIONS RELATING TO THE FOREGOING SUBJECT;
PROVIDING FOR SEVERABILITY; DECLARING AN EMERGENCY; AND
PROVIDING FOR THE EFFECTIVE DATE THEREOF.
WHEREAS, The City of Baytown ( "City") and various
municipalities comprising the Coalition of Cities ( "Coalition ") in
their respective capacity as regulatory authorities of Houston
Lighting and Power Company ( "HL &P"), as listed on Exhibit "A," have
or will have intervened in Docket No. 12065, Complaint of Kenneth
D. Williams against Houston Lighting and PowerComyany, and Docket
No. 13126, Inquiry of the General Counsel into the Operation and
Management of the South Texas Nuclear Project, currently pending
before the Public Utility Commission ( "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 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 of HL &P's
involvement therein and the municipalities' respective local
Section 42 proceedings in accordance with the provisions of the
Stipulation and Agreement attached hereto as Exhibit "B"
( "Stipulation "); 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
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• 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 cases and in the future; NOW THEREFORE,
•
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN,
TEXAS:
Section 1: The facts contained in the 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 set forth hereinbelow. The Mayor, or in the absence
of the Mayor, the Mayor Pro Tempore, is hereby authorized to
execute all related documents on behalf of the City of Baytown, and
to take all actions necessary to effectuate the City's intent and
objectives in approving the Stipulation in the event of changed
circumstances. The City Clerk, or in the absence of the City
Clerk, the Deputy City Clerk, is hereby authorized to 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 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 and energy sold within the
City by the amount of $62.2 million annually, effective
January 1, 1995.
Section 4: It is further ordered that HL &P is prohibited
from increasing its base rates from January 1, 1995, through
December 31, 1997, subject to exceptions for the occurrence of
certain force majeure events as specified in the Stipulation.
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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 $108 million related to fuel cost overcollection.
Section 7: It is hereby ordered that HL &P file with the
Director of Finance and with the City Clerk, rate schedules and
tariffs consistent herewith within thirty (30) days of the
effective date hereof.
Section 8: All prior ordinances of the City inconsistent
with the terms and conditions hereof are hereby repealed to the
extent of the inconsistency and are of no further effect.
Section 9: If any provision, section, subsection,
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 application to other
persons or sets 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 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 of Baytown for the time required by law preceding this
meeting, as required by the Open Meetings Law, Tex. Gov't. Code
Ann., ch. 551 (Vernon 1994); and that this meeting was open to the
• public as required by law at all times during which this ordinance
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• 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 11: This ordinance shall take effect immediately
from and after its passage by the City Council of the City of
Baytown.
INTRODUCED, READ and PASSED by the affirmative vote of the
City Council of the City of Baytown this the 23rd day of March,
1995.
ATTEST:
EILEEN P. ILALL, City Clerk
APPROVED AS TO FORM:
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JGI�ACIO RAMIREZ, City Attorney
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PETE C. ALF O, Mayor
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COMPLAINT OF KENNETH D
WILLIAMS AGAINST HOUSTON
LIGHTING & POWER COMPANY
FEBRUARY 21, 1995
DOCKET NO. 12065
EXHIBIT A
PUBLIC UTILITY COMMISSION
OF TEXAS
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TABLE 0EQ)NTENTS
Page
ARTICLE I. Definitions ......... ............................... 3
ARTICLE II. Resolution of Docket No. 12065 ......................... 4
ARTICLE III. Resolution of Issues In Docket No. 13126 and Other
Dockets.......... ............................... 5
ARTICLE IV. Stipulated Rate and Tariff Changes ....................... 6
ARTICLE V. Calculation of AFUDC 14
ARTICLE
VI.
Rate Cap Period ..... ...............................
14
ARTICLE
VII.
Fuel Reconciliation ... ...............................
18
ARTICLE VIII. Fuel Factors, PCRF and HB -11 Factor ..................... 20
ARTICLE IX. Trinity Mine Investments and Malakoff
Electric Generating Station Investments ..................... 21
ARTICLE X. STP Deferrals ...... ............................... 22
ARTICLE XI. South Texas Project Performance Standards .................. 25
ARTICLE XII. Reduction of STP Investments ........................... 26
ARTICLE XIII. Accounting Issues ......... . ........................ 26
ARTICLE XIV . Share and Other Low Income Programs .................... 28
ARTICLE XV. Demand Side Management Programs ...................... 31
ARTICLE XVI. Additional Tariff Matters and Studies ...................... 33
ARTICLE XVIL Municipal Rate Case Expenses .......................... 34
ARTICLE
XVIII.
Pending Appeals ...................................
36
ARTICLE
XIX.
Disclosure Agreement ......... . . .. I ..................
38
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