1979-12-03 Emergency Meeting - Laserfiche WebLink

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. Emergency Meeting 12/3/79 2 2. CONSIDER APPROVING PROPOSED ORDINANCE NO. 1179 - ORDINANCE ESTABLISHING RATER TO BE CHARGED BY HOUSTON LIGHTING & POWER COMPANY IN THE CITY OF LA PORTE, 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DATE FOR SUCH RATE SCHEDULES; PROVIDING CONDITIONS UNDER WHICH SUCH RATE SCHEDULES MAY BE CHANGED, MODIFIED, AMENDED OR WITHDRAWN; CONTAINING FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; REPEALING ANY OTHER ORDINANCE OR PART OR PARTS THEREOF WHICH MAY BE IN CONFLICT HEREWITH; AND DECLARING AN EMERGENCY - Mayor Meza stated that the special meeting had been called to consider approving an ordinance establishing rates to be charged by Houston Lighting & Power Company in the City of La Porte and providing for an effective date for such rate schedules; and further stated that this ordinance had been recommended by the City Attorney rather than extension of our rate hearing. The Attorney reviewed the events that had transpired. Houston Lighting & Power Company filed an application for a general rate increase in this service area and it was filed July 21, 1979, with the City of La Porte. At the suggestion of the Light Company, the City passed an ordinance suspending rates, and it expires on December 5. • The City of Houston, based on its study passed an ordinance calling for a system wide rate increase of $48,500,000 and the examiner of the P.U.C. is recommending a rate increase in the $80,000,000 range. The Light Company has filed with the City of La Porte and possibly the other cities a $20,000,000 bond so that they can put into effect, the effective date of December 10 when the full P.U.C. is expected to act on the hearing examiners report, for that period until January 5, 1980, the P.U.C. examiners rate. The City of La Porte and other cities have certain choices: One,pass an ordinance and grant no relief. Another, is to be silent and do nothing and the Light Company's rate under bond will go into effect. Another is to set a rate, this is the option that Houston has chosen. The Attorney stated that he and the Administrator reviewed the file and had had a telephone conversation with Don Butler, who does rate analysis work for T.M.L. on rate matters. And he did not feel that it would be good for cities to do nothing. He was of the opinion that it would be best to set a rate at $48,500,000 as Houston did. •