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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. + + + 1. CALL TO ORDER - Mayor Meza called the meeting to order. + + + • • • 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. + + + 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. + + + 1. CAZL TO ORDER - Mayor Meza called the meeting to order at 7:07 P.M. + + + • • • 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. + + + • 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 ~~ • • 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 r~