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HomeMy WebLinkAboutORD 1998-014 � ORDINANCE NO. 98-14 ;�,,,, AN ORDINANCE APPROVING RETAIL BASE RATE REDUCTIONS FOR TEXAS UTILITIES ELECTRIC COMPANY, FINDING AND DETERMINING THAT THE MEETING AT WHICH THIS ORDINANCE IS PASSED IS OPEN TO THE PUBLIC AS REQUIRED BY LAW, DECLARING AN EMERGENCY AND PROVIDING AN EFFECTIVE DATE WHEREAS, on December 22, 1997, Texas Utilities Electric Company ("TUEC") filed with the City of Grapevine ("Grapevine") a Petition and Statement of Intent to implement base rate reductions for its retail electric service customers within Grapevine, 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 ("PUC") on December 17, 1997; and WHEREAS, electric utility rates are an important economic issue to the citizen- consumers of Grapevine, and as such, deserve a high level of scrutiny; and `�`�' WHEREAS, TUECs rates should accurately reflect any and all changes that have occurred since such base rates were last reviewed in PUC Docket No. 11735; and � WHEREAS, the Stipulation calls for the shifting of $335 million in Transmission and Distribution depreciation to Nuclear Production Plant, which warrants regulatory scrutiny to ensure that such is equitable, not anti-competitive, and is consistent with sound regulatory and public policy; and WHEREAS, it is anticipated that the Texas Legislature will consider depreciation shifting as part of legislation to restructure the electric industry in 1999; and WHEREAS, the City of Grapevine encourages the Texas Legislature to carefully consider whether depreciation shifting is consistent with sound regulatory and public policy before including depreciation shifting in any legislation restructuring the electric utility industry; and WHEREAS, Cities should encourage the PUC to review the Stipulation, PUC Docket No. 18490, to advocate any and all appropriate relief and to oppose any provisions that are found to be contrary to sound regulatory and public policy; and ,�� WHEREAS, there does exist an emergency need to protect the public health, safety, morals, peace and general welfare of the public which requires that this ordinance become effective from and after the date of its passage; � NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY � OF GRAPEVINE, TEXAS: � Section 1. The PUC is hereby encouraged to thoroughly review the equity of depreciation shifting from transmission and distribution assets to nuclear production assets, as called for in the Stipulation, to determine whether the shifting of depreciation is consistent with sound regulatory and public policy. Section 2. 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 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 City Council. The filing of the rate schedules shall constitute notice to the consumers of electricity, within this municipality, of the availability and application of such rate schedules. Section 3. 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 4. Notwithstanding any other provision of this Ordinance, the rates authorized for electric service in the City of Grapevine 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 appeals from city ordinances connected therewith. Section 5. This Ordinance shall be in full force and effect from and after its passage, and it is so ordained. Section 6. 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 and required. Section 7. The fact that the present ordinances and regulations of the City of Grapevine, Texas, are inadequate to properly safeguard the health, safety, morals, peace, and general welfare of the public creates an emergency which requires that this ordinance become effective from and after the date of its passage, and it is accordingly so ordained. PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF ,�„ GRAPEVINE, TEXAS on this the 3rd day of February , �ggg . � ORD.N0.98-14 2 � APPROVED: , v,�. William D. Tate Mayor ATTEST: �. J Brown A sistant City Secretary APPROVED AS TO FORM: . < '� . �.-,:.._ . - _ ., _ �` ` John F. Boyle, Jr. � City Attorney �.;,� � ORD.NO. 98-14 3