HomeMy WebLinkAbout1978-09-20 Public Hearing• •
• MINUTES - PUBLIC HEARING
OF THE
LA PORTE CITY COMMISSION, LA PORTE, TEXAS
SEPTEMBER 20, 1978
7:00 P.M.
MEMBERS OF THE COMMTSS'ION PRESENT; Mayor J. J. Meza.
Commissioners John Tomerlin, I. J. Kibodeaux, Virginia Cline and
Tom C. Simons.
MEMBERS OF THE COMMISSION AB-SENT: None.
OTHER CITY OFFICIALS
Margie Goyen, City C
Nutting, Director of
Stan Sherwood, Parks
OTHER CITY OFFICIALS
PRESENT: J. R. Hudgens, City Administrator;
Jerk; H. F. Freeman, Chief of Police; Gerard
Public Works; Paul Hickenbottom, Inspector;
& Recreation Director; Gail Hamilton, Attorney.
ABSENT: D. R. McLaughlin, Fire Marshal.
OTHERS PRESENT: Jim Wyatt of Houston Lighting & Power Company;
A. J. Busch, Jr., and David Corbin of Busch, Hutchison and Associates;
Decker McKim of Decker McKim Realty.
PRESIDING: Mayor J. J. Meza.
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1. CALL TO ORDER - Mayor Meza called the meeting to order.
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• •
• Public Hearing 9/20/78 2
2. PROVIDE CITIZENS THE OPPORTUNITY TO`COMMENT -0N-THE' USE OF
REVENUE SHARING ENTITLEMENT`MONTES,'..THE OVERALL BUDGET AND
THE RELATIONSHIP OF ENTITLEMENT MONIES TO THE OVERALL BUDGET
FOR THE'F'I'SCAL'YEAR 1978-1979, BEGINNING OCTOBER 1, 1978 -
The City Administrator gave a brief summary of the proposed
budget for the fiscal year beginning October 1, 1978, including
the Revenue Sharing monies.
It was determined that the total budget was less than a seven
percent increase.
Mayor Meza asked if there was anyone desiring to make a comment
or question regarding the budget, further stating that it was
a public hearing on the proposed budget.
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3. ADJOURNMENT - With no further comments or questions, Mayor Meza
adjourned the public hearing at 7:07 P.M.
•
a
Margie oyen, Ci y Clerk
Passed and Approved this the
4th day of October, 1978.
...-
Mayor J. J. Meza
•
• •
• MINUTES - PUBLIC HEARING
OF THE
LA PORTE CITY COMMISSION, LA PORTE, TEXAS
SEPTEMBER 20, 1978
7:07 P.M.
MEMBERS OF THE COMMISSION PRESENT: Mayor J. J. Meza.
Commissioners John Tomerlin, I. J. Kibodeaux, Virginia Cline and
Tom C. Simons.
MEMBERS OF THE COMMISSION ABSENT: None.
OTHER CITY OFFICIALS PRESENT: J. R. Hudgens, City Administrator;
Margie Goyen, City Clerk; H. F. Freeman, Chief of Police; Gerard
Nutting, Director of Public Works; Paul Hickenbottom, Inspector;
Stan Sherwood, Parks & Recreation Directory Gail Hamilton, Attorney.
•
OTHER CITY OFFICIALS ABSENT: D. R. McLaughlin, Fire Marshal.
OTHERS PRE-SENT: Jim Wyatt of Houston Lighting & Power Company;
A. J. Busch, Jr., and David Corbin of Busch, Hutchison and Associates;
Decker McKim of Decker McKim Realty.
PRESIDING: Mayor J. J. Meza.
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1. CAZL TO ORDER - Mayor Meza called the meeting to order at
7:07 P.M.
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• •
• Public Hearing 9/20/78 2
2. PROVIDE CITIZENS THE OPPORTUNITY TO COMMENT ON THE HOUSTON
LIGHTING & POWER COMPANY RATE INCREASE REQUEST - Mayor Meza
opened the public hearing by asking if there were any questions
or comments regarding the rate increase request of Houston
Lighting & Power Company?
Mr. Jim Smith asked what the rate increase would be.
Mr. Jim Wyatt stated that the adjusted increase would be 12.6,
system wide.
The City Administrator informed the audience that the City of
La Porte did join with other communities through Texas Municipal
League to form a consortium and hired a rate attorney, Mr. Don
Butler.
There were no further comments or questions.
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• 3. SUSPENSION - Motion by Commissioner Tomerlin, seconded by
Commissioner Simons that the hearing be suspended pending
action of Texas Municipal League for investigation of the
requested rate increase. Motion carried by the following vote:
AYES: Commissioners Tomerlin, Kibodeaux, Cline, and Simons.
NAYS: None.
The hearing was suspended at 7:09 P.M., to reconvene at a later
date.
~~ `~~ ~
Margie G yen, Ci erk
Passed and Approved this the
4th day of October, 1978.
J. J. Meza, Mayor
•
•
e
comps y
Houston Lighting & Power
July 14, 1978
Honorable Mayor and Board of Commissioners
City of La Porte
La Porte, Texas
Gentlemen:
In April of 1976 the Houston Lighting & Power Company
instituted a general increase in our rate schedules. It has been
more than two years since this change was made effective and
during that period, due to cost increases not within our control,
our rate of return has dropped below the level necessary to
provide sound financing of our Company's business.
The deterioration of our Company's return on investment has
been caused by such factors as general inflation, increases in
state and local taxes, environmental protection costs, and
similar items, which do not provide additional ,generating
capacity or efficiency for our system. It should be noted,
however, that the primary factor in our Company's declining
financial position has been the high cost of new construction.
In the past three years, 1975 through 1977, our generating
capacity has been increased by more than 16$ from an expansion
program amounting to $1.1 billion, and the energy needs of this
area's growing economy are exerting an even greater demand for
reliable electric service which must be met in the immediate
future. In addition, we must continue the gradual transition
from gas and oil-fired generators to more abundant energy sources
such as coal, lignite and nuclear fuel. Just looking forward to
the next three years, 1978 through 1980, we are already committed
to spend $1.6 billion to support our ongoing plant expansion.
The result of this is that within the six-year period, 1975
through 1980, plant expansions will be more than double our total
investment in plant and other facilities in 1974.
An expanding entity, whether it be a municipality or an
electric company, must be kept in healthy financial condition if
it is to operate successfully. So far our Company has been able
to do a better fob of keeping its rates down because its
securities have carried a good rating among electric utilities.
~J
P.O. Box 597 2000 Nasa 1 Seabrook, Texas 77586 (713) 474-4151
Ha:ston Lighting & Power Company ~ •
-.
._
Page 2
• It must be emphasized that our Company's ability to maintain its
credit rating has been of great benefit to our customers since we
have been able to finance our expansion programs on terms more
favorable than many other utilities. We have thus been able to
keep pace with the area's growing electrical needs and at the
same time maintain customer charges that are among the lowest of
all of the investor-owned electric utilities in the nation.
We estimate that between 60~ and 65~ of the $1.6 billion
required to meet our 1978-1980 expansion program may have to be
financed through the public sale of Company securities. With
such an expansion program facing us, we must be able to offer
securities of a quality commensurate with the other available
investment opportunities in order to compete effectively for the
investors' dollars. Tc do this we must have a record of earnings
that will make our securities attractive in today's highly
competitive money market, and without rate relief we cannot do
this.
We are including with this letter a Statement of Intent to
change rates for electric service along with the proposed revised
rate schedules for the Company's Tariff and the rate filing
package with supporting testimony that has been filed today with
the Public Utility Commission of Texas. We have requested that
the new rates become effective on August 21, 1978 and apply to
• all service taken by each customer on or after that date. A
simultaneous filing of Statements of Intent is being made with
all of the municipalities exercising original jurisdiction over
the Company. The rate increases sought in each municipality and
in the rural areas under the direct original jurisdiction of the
Public Utility Commission are uniform for each class of customer
throughout the Company's service area.
We regret that a rate increase is necessary; however, we are
pleased to report that your rates will continue to be among the
lowest in the United States. It is a privilege to serve your
City and it will be our objective to keep our rates at the lowest
possible level consistent with good service and sound operations.
Yours very truly,
HOUSTON LIGHTING & /POWER COMPANY
./% //
District Manage
Enclosures
•
Houston ~
Li hting
&~ower
Company
Electric Tower
P. Q Box 1700
Houston,Texas 77001
•
July 20, 1978
To Municipalities ar_d Commissioner's Courts within Houston
Lighting & Power Company Service Area
Gentlemen:
Houston Lighting & Power Company has filed a
Statement of Intent with the Public Utility Commission
of Texas to increase its rates. Pursuant to Commission
regulations we are hereby providing a copy of a notice
• of prehearing conference regarding this application to
be held at the Commission offices in Austin, Texas, on
Monday, July 31, 1978, at 9 A.M.
Very truly yours,
KRH:jlm
K. R. Hinckley
Group Vice President
•
C~
DOCKET N0. 2001
APPLICATIOia OF HOUSTON LIGHTIP;G ~ PU~3LIC UTILITY fOMMISSIOti
At;D POWER COt1PANY FOR A RATE ~
INCREASE ~ OF TEXr1S
NOTICE OF PP.EHEARIt;G COF~FER~NCE
On July 14, 1978 Houston Lighting and Po:rer Company filed a statement of intent to
increase its rates within unincorporated areas served by it on August 21, 1978. The
application and similar applications filed with each municipality served by HL&~ a~ould
result in a system-wide annual revenue increase of 3174,900,000 or approximately 12.6
percent of adjusted revenues. P.11 customers and classes of customers would be affected
by thn application. The number of customers affected is as follo~•~s: 721,163 residentials,
103,698 commercials, 1,478 ind~~strials, 78 municipalities, and 6 public utilities. A copy
of the application, specifying in detail each proposed chang?, has been filed at the Com-
mission offices and with each municipality served by HL&P.
The Commission has jurisdiction over this application pursuant to art. 1446c, S 17(e),
V.A.C.S. ~•~hich provides that the Commission shall have exclusive original jur•isdi~tion
over electric utility rates within unincorporated areas. Pursuant to Commission Rules
052.01.00.024(b) and 052.01.00.052 a prehearing conference shall be held at t~,e Commission
ffices located at 7800 Shoal Creek Bivd., Austin, Texas on July 31, 1978 at 9:00 a.m.
~fotions to intervene shall be filed by July 24, 1978 and written pretests shall be filed
by August 28, 1978. The scope of the prehearing conference shall include consi+eration of
motions to intervene, alignment of parties, determination of a hearings schedule, consider-
ation of suspension of the effective date of tine application, and other procedural matters.
Pursuant to art. 1446c, S 43(c), V.A.C.S. and Commission Ruie 052.01.00.0^3(a)(2)(B),
HL&P is directed to provide a copy of this notice to all affected municipalities and to
the Commissioners Court of each county in which the proposed rate change would take effect.
EP;TEP.ED AT AUSTIPi, TEXAS, on the ~tday of JULY, 1978
PUBLIC UTILITY COMMISSIG"d OF TEXAS
PHILIP F. RIC~' TTY
DIRECTOR OF ~EARINGS
AND SECRETAR'~ OF THE CO'1MISSION
•
~~ ~~ ~- ~ ~_ ~ T]E~.AS I~'IUI~TICIPAL LEAGUE
*'•- - 1020 Southwest Tower Austin, Texas 78701 (512) 478-GGO1
•
July 19, 1978
T0: CITIES SERVED BY HOUSTON LIGHTING & POWER CO.
FROM: TML STAFF
RE: HL&P RATE INCREASE REQUEST
City representatives have asked that TML advise you of a meeting
of representatives from cities affected by the recent HL&P rate
increase request. This meeting will be held at 10:00 A.M. on
Friday, July 28, 1978, in the fourth floor conference room
(Room 4100A) of the City Hall Annex in Houston. The City Hall
Annex is directly across the street from the Houston City Hall
and is located in the downtown area near One Shell Plaza. You
are urged to have a representative in attendance if you wish to
discuss the appropriate handling of this rate request.
Simultaneously with the filing of the local rate cases, HL&P
filed a rural rate case with the Public Utility Commission.
The rural rate case filed with the PUC will likely be precedent
setting for the city rate cases because the PUC has appellate
jurisdiction from city regulation. Because of the importance
of the case at the PUC, Houston, Baytown and perhaps others
have filed interventions in such case. The deadline for
filing any such intervention is Monday, July 24, 1978. Because
of the limited time for filing interventions, TML has been
asked to file a blanket intervention which would allow its
member cities to participate or not, if they so choose, in
the case at the PUC.
If you have any questions concerning the case at the PUC,
appropriate handling at the local level, or the scheduled meeting
please call Harriet Hubacker, Assistant City Attorney, at
713/222-5165 in Houston, or Don Butler at 512/476-6604 in
Austin.
MEMORANDUM
•
August 10, 1978
T0: Mayor and Council
FROM: J. R. Hudgens
SUBJECT: Houston Light and Power Rate Increase
On Friday, August 4, I attended a meeting in the Bellaire
- Council Chambers reference the above. In attendance were repre-
sentatives from many communities (approximately 20) served by
Houston Light and Power, including Houston and Baytown. The pur-
pose of the meeting was to determine whether or not smaller com-
,~ munities would band together, employ Council, and become an
intervenor in the Houston Light and Power rate case before the
Public Utilities Commission (PUC) in Austin. It was the concensus
of those representatives attending from the various smaller com-
e munities that this would be beneficial to the efforts of Baytown
and Houston, as well as make known to the Public Utilities Com-
mission that the smaller cities were not going to abdicate their
rate-making authority to the PUC. All of the intervenors in
Austin will be categorized between municipalities, industry, etc.,
and the smaller communities would be placed in the same category
• as Houston and Baytown, who have filed motion to be separate in-
tervenors.
A steering committee, comprised of Mayor Ware of Bellaire, -
Mayor Holmes of Shoreacres, and Jim Brown, City Administrator of
West University Place, was selected from the cities represented.
Also, the cities represented voted to employ Don Butler, of the
Texas Municipal League, to represent the consortiums' interest be-
fore the PUC. The employment of Don Butler to represent the cities
was predicated on the respective interested communities pledging
five (5) cents per capita, based on their 1970 population, to cover
legal fees. This represents a cost to the City of La Porte of
some $350.00 to $375.00. I have, with the advice and consent of
part of the Council, committed the City of La Porte to support the
combined efforts of the smaller communities before the PUC. I am
requesting that Council ratify this commitment and authorize the
expenditure of the required dollars based on our 1970 population,
so that we may join with the other communities in making ,our concerns
known to the Public Utilities Commission.
J. R. Hudgens
City Administrator
• JRH/cb
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August 10, 1978
T0: CITIES SERVED BY HOUSTON LIGHTING & POWER COMPANY
FROM: LOUISE WARE, MAYOR, BELLAIRE - CHAIRMAN, STEERING COMMITTEE
SUBJECT: STATUS REPORT - HL&P PROPOSED RATE INCREASE
On Friday, August 4, 1973, representatives of several cities met to
further discuss joint action in the above case. It was decided that a
consolidated effort should be made through the hiring of an attorney. Such
attorney would work with attorneys and rate consultants from Houston in
developing evidence for usage at the local level and presenting such
evidence at the Public Utility Commission. In return for such participation
by other cities, Houston is to pay for, and make available, all information
from their consultants, Touche-Ross & Co. Houston has committed to expend
up to $75,000.00 on this effort. There would be no expenses for the con-
sultants to the other cities, unless such cities want an individual
presentation. It is anticipated that one or more presentations will be
made on a joint basis, without cost to cities other than Houston, for all
• city representatives who might wish to attend.
The city representatives selected a steering committee composed
of the following to direct the activities of the case:
Louise Ware, Mayor, Bellaire - Chairman
Jim T. Brown, City .Manager, West University Place
John 6. Knox, Mayor, Missouri City
The representatives present also voted to hire Don Butler, an attorney
from Austin to represent their interests. It is anticipated that his fees
will run from $5,000.00 to an absolute maximum o'f $10,000.00. However, in
no event would any city be obligated to spend more than 5¢ per capita based
on 1970 population. A portion of this may be reimbursed depending upon
the extent of participation of other cities and reimbursement by the Company
under the Public Utility Regulatory Act. Enclosed find an authorization
which may be forwarded to the TML office in Austin. Such authorization, along
with appropriate payment, should be made prior to September 30, 1973, so that
such city's participation can be noted prior to commencement of the PUC hearings.
Attached are a schedule of dates and a form Ordinance which may be
used to suspend the rates for 120 days. Such action may also be taken through
a resolution depending upon your particular city charter by using the same
language but putting it in the form of a resolution. Such resolution or
ordinance should be adopted prior to the proposed effective date of the rate
increase (August 21, 1978).
• Any questions or communications may be directed, as applicable, to
either Mayor Ware, Bellaire City Hall, 7003 South Rice Avenue, Bellaire,
Texas, 77401 (7.13/667-8315), or Don Butler, 1225 Southwest Tower, Austin,
Texas, 78701 (512/476-6604).
a •
MEMORANDUM
• August 10, 1978
TO: Mayor and Council
FROM: J. R. Hudgens
SUBJECT: Houston Light and Power Rate Increase
On Friday, August 4, I attended a meeting in the Bellaire
Council Chambers reference the above. In attendance were repre-
sentatives from-many communities (approximately 20) served by
Houston Light and Power, including Houston and. Baytown. The pur-
pose of the meeting was to determine whether or not smaller com-
a munities would band together, employ Council, and become an
intervenor in the Houston Light and Power rate case before the
Public Utilities Commission (PUC) in Austin. It was the concensus
of those representatives attending from the various smaller com-
e munities that this would be beneficial to the efforts of Baytown
and Houston, as well as make known to the Public Utilities Com-
mission that the smaller cities were not going to abdicate their
rate-making authority to the PUC. All of the intervenors in
Austin will be categorized .between municipalities, industry, etc.,
and the smaller communities would be placed in the same category
as Houston and Baytown, who have filed motion to be separate in-
• tervenors.
A steering committee, comprised of Mayor Ware of Bellaire,
Mayor Holmes of Shoreacres, and Jim Brown, City Administrator of
West University Place, was selected from the cities represented.
Also, the cities represented voted to employ Don Butler, of the
Texas Municipal League, to represent the consortiums' interest be-
fore the PUC. The employment of Don Butler to represent the cities
was predicated on the respective interested communities pledging
five (5) cents per capita, based on their .1970 population, to cover
legal fees. This represents a cost to the City of La Porte of
some $350.00 to $375.00. I have, with the advice and consent of
part of the Council, committed the City of La Porte to support the
combined efforts of the smaller communities before the PUC. I am
requesting that Council ratify this commitment and authorize the
expenditure of the required dollars based on our 1970 population,
so that we may join with the other communities in making ,our concerns
known to the Public Utilities Commission.
J. R. Hudgens
City Administrator
JRH/cb
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