1979-12-03 Emergency Meeting - Laserfiche WebLink

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• • Emergency Meeting 12/3/79 3 2. CONSIDER APPROVING PROPOSED ORDINANCE N0. 1179 - ORDINANCE ESTABLISHING RATES TO BE CHARGED BY HOUSTON LIGHTING & POWER COMPANY (CONTINUED) The Attorney was of the opinion that the Light Company would appeal the rate that Houston and the other cities set, to the P.U.C. and in due course will be resolved on a negotiated basis. The Attorney stated that these were the options available to the City. The special meeting had been called because this matter could not wait and keep all the options some of them would have been closed if we had waited until Wednesday night. If nothing is done, then the Light Company will set at least the hearing examiners recommended rates under bond. If the P.U.C. were to set a lower rate, then the bond would stand good for the refund. There is some feeling that the P.U.C. will set a higher rate than the hearing examiners rate. The Attorney was of the opinion that it was to the City's best interest to better protect the City to set a rate and not just set silent. • Mr. Jim Wyatt was recognized and addressed the Commission by stating that the Light Company intends to file rates on December 5th and it just happens to coincide with the date that the 120- day suspension does run out. The rates could have been filed under bond in 90-days, but they waited until they got the hearing examiners report and they feel confident that that rate will go into effect. The full P.U.C. will meet on the 10th of December. During the interim time, they will set rates and send them in for approval. If the full P.U.C. should grant them a higher rate, they will have to come back and re- do the rate schedules and submit them to Austin for approval. Mr. Wyatt stated that he did not understand Mr. Butler's recom- mendation, the Light Company, as well as all utilities, recognize the P.U.C.'s legislative act, and they have never sought to question the cities action or have taken fact that the city did not take action. The Act is so designed that the City does not have to take action if it does not want to. So by not taking action he did not feel that the City was jeopardizing their rights what so ever. The City has one other option and they can extend the application another 30-days. That would have nothing to do with the Light Company rates under bond. The suspension does prevent the Light Company from putting a final rate into effect. He further stated that if the City took no action, it was not in any way construed as a weakness of the system. •