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HomeMy WebLinkAbout1979-12-03 Emergency Meeting• MINUTES - EMERGENCY MEETING OF THE LA PORTE CITY COMMISSION, LA PORTE, TEXAS DECEMBER 3, 1979 5:00 P.M. MEMBERS OF THE COMMISSION PRESENT: Mayor J. J. Meza; Commissioners I. J. Kibodeaux, Virginia Cline, and Tom C. Simons. MEMBERS OF THE COMMISSION ABSENT: Commissioner John Tomerlin. OTHER CITY OFFICIALS PRESENT: J. R. Hudgens, City Administrator; Margie Goyen, City Clerk; and Knox Askins, City Attorney. OTHER CITY OFFICIALB ABSENT: H. F. Freeman, Chief of Police; • Jack Burks, Director of Public [Yorks; Stan Sherwood, Director of Parks & Recreation; Joe Sease, Fire Chief; D. R. McLaughlin, Fire Marshal. OTHERS PRESENT: James Wyatt, Houston Lighting & Power Company; J. J. Liddell, and Betsy Webber, La Porte-Bayshore Sun. PRESIDING: Mayor J. J. Meza. + + + 1. CALL TO ORDER - Mayor Meza called the meeting to order. + + + • i ~ CITY OF LA FORTE INTER-O~~IC~ MEMQRANDUM T 0: Jim Hudgens, City Administrator FROM: Benjamin Talburt, Inspecotr SUBJECT: Greco Property DATE : December 19, 1979 • I made an inspection of Mr. Grecos' property (building) on December 18, and found it to be in the same condition as on my Iast report. I recommend that the City Commission set a new hearing date and have Mr. Greco notified by the City Clerk. • . 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DATE FOR SUCH RATE SCHEDULES; PROVIDING CONDITIONS UNDER WHICH SUCH RATE SCHEDULES MAY BE CHANGED, MODIFIED, AMENDED OR WITHDRAWN; CONTAINING FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; REPEALING ANY OTHER ORDINANCE OR PART OR PARTS THEREOF WHICH MAY BE IN CONFLICT HEREWITH; AND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. • • • 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. • ,- • • Emergency Meeting 12/3/79 4 2. CONSIDER APPROVING PROPOSED ORDINANCE NO. 1179 - ORDINANCE ESTABLISHING RP,TES TO BE CHA'RGE'D BY HOUSTON LIGHTING & POWER COMPANY (CONTINUED) Mr. Wyatt stated that it was clear in the mind of the Light Company that the State of Texas was setting the rates. The Light Company was setting rates under bond because last year they had 84 cities setting 84 different rates and different times and for accounting purposes, it was very bad. By setting the rates under bond, all cities start out at the same time, for accounting purposes. There was a discussion regarding the differences of the proposed rate of the Light Company and the rate proposed by Houston. • The Attorney stated that he had always been complementary to the Light Company in that they had always dealt equally with the small cities as the large cities. He stated that there were still many unanswered questions, and he was trying to protect his client in every stage and did not want La Porte paying any more than Houston. Mayor Meza stated that what he understood that the Light Company was asking for on an average $80.00 light bill, would be an increase of $8.40; the P. U. C. rate would increase an average $80.00 bill by $4.00; and if we pass the proposed ordinance, it would increase an average $80.00 light bill by $2.40. There was a brief discussion regarding the bond that had been filed and other things that are still in question. Mayor Meza asked if there were any more questions for Mr. Wyatt. Commissioner Cline stated that she had no more questions for Mr. Wyatt, but had some for the Public Utility Commission. After the proposed ordinance was read in full, motion by Commissioner Cline, seconded by Commissioner Simons to approve Ordinance No. 1179 as read. Motion carried by the following vote: AYES: Commissioners Kibodeaux, Cline, and Simons. NAYS: None. CAPTION: AN ORDINANCE ESTABLISHING RATES 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. + + + .,. • Emergency Meeting 12/3/79 3. ADMINISTRATIVE REPORTS - None. + + + 4. COUNCIL ACTION - Commissioner Simons requested a brief executive session for personnel matters. + + + 5 5. EXECUTIVE SESSION - V.A.T.S. - ARTICLE 6252-17 - SECTION 2 - (E), (F), AND (G) - (LEGAL, LAND ACQUISITION AND PERSONNEL). Motion by Commissioner Kibodeaux, seconded by Commissioner Simons that the meeting recess for an executive session. Motion carried by the following vote: AYES: Commissioners Kibodeaux, Cline, and Simons. NAYS: None. • The meeting recessed at 5:38 P.M. The meeting reconvened at 5:45 P.M. + + + 6. ADJOURNMENT - Mayor Meza adjourned the meeting at 5:46 P.M. Passed and Approved this the 5th day of December, 1979. ,-__ • J. J. Meza, Mayor • Q Margie G en, Cit Clerk ,. ~~~- , y s ~~-- ~ 'The Li ht~ compa~iry ~„~o~~,~~,,,g~w.~ November 28, 1979 Honorable Mayor City of La Porte La Porte, Texas Gentlemen: and City Council As you are aware, the City Council has not yet completed action on the pending rate application of Houston Lighting & Power Company. The Council has previously taken action to suspend the effective date of the proposed rate increase for a period of one hundred and twenty days. • Under the Public Utility Regulatory Act any regula- tory authority has a maximum period of one hundred and fifty days beyond the proposed effective date of a rate increase in which to complete action on the application. While this statutory time period will not expire prior to January 4, 1980, the one hundred twenty day suspension period for the rate application will expire on December 5, 1979. At this time the Public Utility Commission of Texas has not yet taken final action on HL&P's rate application, which has been designated Docket No. 2676. However, the Examiner's Report was filed November 19, 1979, and a hearing on the Commission's Final Order is scheduled for December 10, 1979. In order to achieve maximum uniformity in rate levels throughout the service area, HL&P is taking steps to put into effect, subject to refund, temporary rates throughout the Company's service area pending final action on the Company's rate application. The purpose of this letter is to notify you of the Company's intent to place in effect within the City of P.O. Box 597 2000 Nasa 1 Seabrook, Texas 77586 . (713) 474-4151 i Howion,lightin~ & Power Company • • Honorable Mayor and City Council City of La Porte Page 2 • e a e o filing and will be subject to refund to the extent there is any difference between the temporary rates and those ultimately approved by the City Council or by the Public Utility Commission of Texas or any court of competent jurisdiction in any appeals resulting from the action of the City Council. • La Porte rates based on the Examiner's Report and Proposed Final Order in Docket No. 2676. The rate schedules will be filed with your City Secretary when they are prepared, but in no event prior to December 5, 1979. Such rates will be effective for all electric service taken after th d t f Enclosed is a draft of a bond in the amount of $20,000,000 as security for HL&P's potential refund obligation by virtue of these temporary rates. You will note that the bond is payable to the Public Utility Commission of Texas and all those municipalities, including your City, acting as "Regulatory Authorities" with respect to HL&P under the Public Utility Regulatory Act. The form of the bond and the surety have been approved by the Public Utility Commission pursuant to Section 43(e) of the Public Utility Regulatory Act. At the Commission's request, the interest rate for any refunds will be equal to the composite cost of capital for HL&P of 10.55% as found in the Examiner's Report in Docket No. 2676. Unless we hear from you to the contrary, we will assume that you have no objections to the bond. Please let us know if you have any questions regarding these matters. Very truly yours, HOUSTON LIGHTING & POWER COMPANY gy i rict Manager Encl. Received and filed this ~ 7` day of November, 1979. • -~~ ..~ City Se retary City of La Porte, Texas .. 't\r,.r`, .~i 4) l'N ~ .(. I y.,` `r ', ._~__',r ~ ~ ~ ~~~f .v l' r{~ •/ '~.~."f 'f 1 I • Bond No. AC SU945 • • R 0 N I) h"ti'OW ALL MEN I3Y T}IESE PRESENTS: Thac we, }fouston Lighting & Power Company, a Texas corporation, as Principal, and `__ _ ArfERIC~'1N GENERAL INSURANCE COMPANY a corporation of the State of Texas, duly authorized to carry on a surety business in the State of Texas, are held and firmly bound to the Public Utility Commission of Texas, and those municipalities listed on Rider A, which is attached hereto and made a part hereof for all purposes, all of which entities are acting as "Regulatory Authorities", as that term is defined in the Publie • Utility Regulatory Act, Art. 1446c, S 3(g), VACS, with .respect to ]]ouston Lighting & Power Company, in the sum of TWENTY MILLION DOLLARS ($20,000,00O.OOa The condition of this obligation is such that: ` WHEREAS, on July S, 1979 ]Iouston Lighting & Power Company filed a Statement cf Intent to Change Rates pursuant to Section 43(a) of the Public Utility Regulatory Act (Utility Act), Article 144Ge, VACS, with each of the • Regulatory Authorities, and W}IF-:RF.AS, each of the Regulatory Authorities took action to suspend _ •the.effective date of the proposed rate change for a period of one hundred twenty days beyond the proposed effective date of August 7, 1979, and WIIF,REAS, the one hundred twenty day suspension period expired on December 5, 1979, and • k7iF.REAS, the ninety day period beyond the proposed effective date, • after which period rates not to exceed the proposed rates may be placed into effect under bond and subject to refund, expired on November 5, 1979, and • Wi{ERF.AS, the maximum period for action on the rate application before such•appliration is drr~mcd to have been aI\prove`d :rs a matter of ]aw is one hundred fifty days beyond the props\sed effective d:~te, which period will end on January 4, 1980, and W'HF:1tEAS, the appro~rriate amount of increased rates to be collected • prior to January 4, 1980 throughout the sc•rvicc :rrca of llouston Lighting ~ P~\wer Company is lass than 1'IJI:N7Y P1I}_I,ION [1t11~1_AItS_(;"?0,000,000__00 r -- -~- - _ ~ _ ". NOW, TIIF:IlF:I~OIZF., if swirl(1,(I/l/~/~Jr;ton Li};htin}; f: 1'owcr Company: (a) sh:rl l ahi do b a' f i na I de t e ern i n:+t i on ~ ~cy~~CX:(i ~`(X~C?SYi{r''{;(~(XX,v,y,•t;{1~,,x~,vy;};};YJ~+)(JC w1r i ch may he made un this :rpplir:rlion I,y :rny Rc•l;ul:rtnry Authority as to r:rt<•s within the area under its jurisdiction, or by the Public Utility Commission of "Texas in any appeals ~r/Ge7sril,ting from the action of a municipality acting as a Regulatory Authority, X~?tXLYLJI-,{{/X/~?jr-,XX:X~X:.~{XXX~~XXX~~,~(;YX~(~tx?~7CIBS,~E.YId,~(~}'iti<P:Xi.Yi!Xi~4Ay Xt•;}I?th9r.Ir.~C)i~i~~JCl•1X(~;?{,':Xft~'ri7x XY.XcxXXXYY.•XilCXrYXXY~,~~x~,:~;~;x>.~,xaxX>.Y~•xX1XiUItiY,~tiSX,~ and (b) shall promptly pay hack to its custorners'in the area subject to the jurisdiction of each regulatory authority, the excess, if any, of tiro rates which said }louston Lil;lrtiug & Power Comp:,ny shall he•reafter•actually put into effect and collect from said customers prior to the final determination on its rate application over and above the rues which are .~ finally determine) to be flee just and reasonable rates which should have. been charged During such time Chat Houston Lighting & Power Company has collected • said excess, if any, together with interest at the rate of _ 10_55 percent per annum; and shall, shou]d it be impossible because of inability of }louston Lighting & Power Company to locate the customer or customers to whom any refund shall be due, credit-the amount thereof to the fuel adjustment account of (louston Tighting & Power Company, thereby reducing the amount that would otherwise be passed on to customers; then in such event this oblig.3tion shall be null and void; otherwise to remain in full force and effect; provided that this bond may be discharged at such time and in such manner as the Regulatory Authorities may ordcr._ Signed and sealed this 26t1i day of November 19 79 • r ATTEST`. •' ' ~ ~~ ,' ~, ~ 1 ' ~~ ~ ,~) --,• ? -fI~ ~ - • Secret,rry 1, ,~~)•~ •~ Af ''ROVED AS TO F Ri~ • P blic Utili' Hunt Sion of Texas HOUSTON LICIT"1'INC & PO~~ILR COP1l'ANY [lY- - - - - Vi ce I'r-es i r1<~nt AI`i1:RTCAN Cf?~7ERAI. INSURrWCE CU;~11'ANY ~~ /~irrcty-- - - •-----•--------~ . ~.•, ; ~. r' • ~ r ~ ~ Attorney in 1'~JCt Janice Watts • • 4 • • j'~o:!rwed,'Ttrat this Cnrnlrnn}' dc~, and it herchy dcr_s authorize and cmp~wcr its I'residcnt or any one of lts Vice• Presidents, in conjunction with any one of its S^c-aetaries ur any one of its /'•e.'.i`tant Sic rc';,ries, under its cr~rl>orate real, to appoint an}' per:~n or per:.ons as attornc}'•in-fact or attornc}'s•in-fact, or zgcnt or agents of t}ris Compzny, in its name and as its act, to execute znd d:iivcr any and all contracts gtrarantccing the fidelity oC p^_rsons holding positions-of public or priti~te trust, guararrtceing tl~e perforrnurcx of contracts other t}•.an insurarue poli~ics:rnd cxecutin, or guar: ntecirrg bonds znd trnder- tal:ings, required or Iturtitted in all actions or proceedings, ortby law allowed; and, in its n:+me and as its attorney-in-fact or attorneys-in-fact, of scent or agents, to execute and guarantee t>>e condi-cons of r.n} and aJl bonds, recogr.irnecs, obligations, stipulations, und~rtakin~s or anything in tyre nztue of the rrrn~, v.'hich arc or may by law, municipal or otlrcr:~ise, or by any Statute of the United States or of an}' State or Territory of the United Sta'cs, or by the nrles, regulations, orders, customs, practice or discretion of any hoard, body', organiz3lion, office or offrcer, lo:~l municipal or otherwise, be allowed, required or p°rmitted to be executed, made, taken, given, t=ndered, ace -pled, filed or recorded for the eectrrit}' or protection of, by or for azr}' p_rson or p'rsons, corporation, body', office, interest, znuni~ipaJ.it}' or other z.rsociation or orEaniz2tion whatsa:s'er, in an}' P.nd all cspacnc~s w}ra_tscWver, conditioned for the doing or not do~ng of~.r.ytl-~ir.g of any ~~ tDZ~itre'o ~ma}~ be provided for in any such bond, re.cei~.z:=nc,=, abL~~tior., stipu._tion or un~,~rt~.~.ing, or an} siring the nature, class oz extent of the irrstrurri°nts so autho;ved to be sp/4ifrcd ~n fuch power of atttrrrey. I, Elisabeth Reap ,Secretary of the AhiEt21CA2: GENERAL INSUPANCE COhiFANY, hereby' certify that at a meeting of the Board of Directors of said Compzny', duly ezJled and held at the offict of the Co;npany at the City of Houston, on the l lth day of Septcrnber, A. D. 1430, at which ~'as prc,~:nt a quorum of :aid Directors, duly authorized to act in the premises, resolutions were pa~~ed grid entered on the minutes of said Company, of which resolutions the foregoing is a true cop}' and of the whole thereof. In Tr-stimony ~4'lr°reof, I have hereunto set my hand and gal of the AhiER1CAN GENNEP~AI- INSUR-°J`CE CO'~iPAir'Y, this ~~~.-dry of Anrl~ , A. D. 1~--. (Signed) Elizabeth P•eap. (SF A~) Secretary. STATE OF TEa AS ~ ~: COUNTY OF H.4RR.IS . ~? c-u~lution • I, Secretary of the p`?'of a PoweGof Attorneys xtcu cd }said AhiER1C1ANeGENELRA-L L'~S~URANCE CO1~iPA2v'Y, is a tnu rrtd co:rett copy which is still in full force and effect. I also certify that the Sollowing Resolution was adopted by the Board of Directors of the American General Insurance Company at the regular meeting held in Houston, Texas, on February' 3, 1976: P.E~OLVED, that, pursuant to Article VI, Section S., of the bylaw's of A1~iER1CAN GENERAL INSURANCE COhiP.~hTY and Article 2.02 (3) of the Texas Bustness Corporation Act, the facsimile sicmatures oC the chairman of the board, the president, or any vic^. president of the company', and of the r~cretar}' or any ~ssist.:.nt secretary' of the company, and the facsimile corporate sr al may be afirxcd to any~oh facsimile sigra~ures or rcorporate seal fshall be as~~aLfd and binding of-bonds, reco~rtizvnces, and consents; and that an}' upon the company as though manually affixed. W FITNESS W1iEREOF, I have hereunto set my hand and affixed the seal of said Company at the City of Houston, Texas, this 26th ~y of Irovember A. D. 19 7 9 Secretary. C,~4i Al. I~SU ~,~ ~~llSTpN'Qg2 C~ c tr U n C: ~'~ * ~ O '~ a ~~ TEXAS ~<'~ • ' • - Ah;LRICAN GENERAL INSURANCE COMPANY •; I IousT~,v, T r_xAs , ~~ ~ l ~ I ., • ~ ` .~ ;~. < < •.;~ •, GFNI;RAL P044`LR OF A'TTORI\'f~Y , ,, (BONDS FORUNL}Af1•IFD AA[CUNTS) Know .4ll i11en b}' these Presents: _ That the A,'vfERICAN GENERAL [NSURANCE COh1PANY, a corporation, duly incorporated under the Jaws of the State of Texas, doth hereby constitute and appoint -____~a~i~~wa~~_ of the City of Hnu sto n__ and lawful attorne ---- ~ State of Teas y•in-fact for the follow~,ng purposes, to•wit: , to be its true• To sicn its name as surety, and to execute, seal and ackro•,vledge any and all bonds, reco~,ziz3nces, ob[i~ations, stip- ulations, undertakings or anything in the nature of the same, and to respectively do and perform any and all acts and thines set forth in the appended resolution of the Board of Directors of the said AIfERIC.4N GENERAL INSURANCE CObfPA1~tY; provided, that the penal sum of no single one of such bonds, recogni~;nces, obli,ations, stipulations or underLakinos shall exceed the sum of Unlimited_ (S . ); the Company hereby ratifying and conf`urrung all and whatsoever the Dollars • do in the premises by virtue of these presents, but resen-ing to itself full power of substitutionrand r~vocation3ct may lawfully In 4Yitness li7rereof The said A',IE}tICAV G N1', pursuant to a resolution passed by its Board of Duectors, at a meeting held on the ] Ith day of S'pUmberCA.D. 1930, a certi ied co annexed, has caused these presents to be scaled with its corporate seal, duly attested by the signaPuyre of its Presidento, Vice-Presidents and Secretary this ?th day of - April (SEAL) ATTEST: (Signed) ---~Li~.ahe~~R~n.R_____ Secretary. STATE OF TEXAS - COU, lTY OF IiARR1S, ss: CITY OF I[OUSTON. '. A. D. 1978 Ameri~rn General Insurance Company IIy (Signed)____ Andrew Delaney • Senior Vice - Preside On this Zi`h_. day of April in t}re ear 19 78 • }' before me personally carne _-~' _-----_`An_d_rew Dc1:lncy-------- to me known who, being by me duly sworn, did depose and say: That he resides in I[ousto s; that he is V . _1 G ~-_ Presi- dent of the A,1fER1CAN GENERAL INSURANCE. COtifPANY, the corporation described in and •,vhich- execu ed t}ioe a rnstrurnent; that he knows the Seal of said corporation; that the Seal affixed to said instnunent is such corporation Seal; that it was affixed to such insinunent by and under authority conferred by t}re Board of Directors of said corporation and that he signed his name drereto by like authority. • (Si ned ~ ~~' ~' , Notary Public, f[arris County, T xcis A•76-~ 1 ~- ., .. • i To be attached to Insurance Company Cities referred to 1. Alvin 2. Baytown 3. Beach City 4. Beasley 5. Bellaire 6. Bonney 7. Broo4;shire 8. Brookside Village 9. Bunker Hill 10. Clear Lake Shores 11. Clute 12. Cove 13. Danbury 14. Deer Park 15. Dickinson 16. E1 Lago 17. Freeport 18. Fri endst•~ood 19. Fulshear 20. Galena Park 21. Galveston 22. Nedwig Village 23. Hillcrest Village 24. Hi 1 sf~i re Vi 11 age 25. Hitchcock 26. Humble 27. Hunters Creek 28. Io~•~a Colony 29. Jacinto City 30. Jamaica Beach Village 31. Jersey Village 32. Jones Creek 33 . Katy 34 . Y,ema h 35. Kendleton 36. La Marque 37. La Porte 38. Lake Jackson 39. League City 40. Li ve--pool 41. Lomax 42. Magnolia Signed, and sealed this 26th day of \1 r,l ; , .•~, •, Attest: ~ ~~ ~~~ •~ • S~ rotary R}1)I:K A and form a part of Po on behalf of Houston in Paragraph. One are nd No. AG 50945 Lighting & Power as follows: 43. 44. 45. 46. 47. 48. 49. 50. 51. 52. 53. 54. 55. 56. 57. 58. 59.. 60.~ 61. 62. 63. 64. 65. • b6. 67. 68. 69. 70. 71. 72. 73. 74. 75. 76. 77. 78. . 7 9 . G• 80. L• 81 . t• 82. l 83, l 84. H November of American C~~ner.al Company. !•lanvel Missouri City hlorgans Point !•tont Belvieu Nassau Bay Needville Oak Ri dae ~Jorth Ol d River-1~1i nfree Orchard Oyster Creek Pasadena Pattison Pearland Piney Point Village Prairie View Quintana Richmond Richwood Rosenberg San Felipe Santa Fe Seabrook Sealy Shorcacres Simonton South Houston Soutfrside Place Spring Valley Stafford Stagecoach Sugarland Surfside Beach Village Taylor Lake Village Texas City Thompsons Tomball Taller Dallis lobster •Jest University lharton ouston 1979 }}OUS'TON LIGHTING S POiJER CO`1PANY _l~-_ ~ _ _ Vice President A.*1 n _CAN GENERt~L INSURANCE CO'fPAh'y y_~:--~ --- _ _ • • ORDINANCE N0. 1179 AN ORDINANCE ESTABLISHING RATES TO BE CHARGED BY HOUSTON LIGHTING & POWER CO^~PANY IN THE CITY OF LA PORTE, TEXAS, PROVIDING FOR Aiv EFFECTIVE DATE FOR SUCH RATE SCHEDULES; PROVIDING COI~'DITIONS UNDER [r~HICH SUCH RATE SCHEDULES MAY BE CHANGED, MODIFIED, AMENDED OR [4ITHDZA~VN; 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 AP1 E;.~IERGENCY . WHEREAS, on July 21, 1979, Houston Lighting & Power Company filed with the City of La Porte, a request for an increase in rates to be charged within the City in the amount of $179.4 million per annum on a system-wide basis, and increase of approximately 10.50; and WHEREAS, the City Commission is of the opinion that a • lesser increase in rates should be approved for the Company; and S4HEREAS, the City Commission finds that a total increase of $48,500,000 will assure rates which are just and reasonable to both customers and the Company, NOW THEREFORE, BE IT ORDAINED BY THE CITY COP-1~n'IISSION OF THE CITY OF LA PORTE: Section 1. That an increase in the rates of Houston Lighting & Power Company for electric power and energy sold within the City of La Porte be approved in an amount such that the adjusted total system-wide operating revenues for the Company be increased • $48,500,000 per annum, based on the adjusted test year ending March 31, 1979, which constitutes an increase of approximately 3~. Such rates, as are approved in accordance herewith, are those under which said Company shall be authorized to render electric service and to collect charges from its customers for the sale of electric power and energy within the corporate limits of the City of La Porte, until such time as said rate schedules may be changed, modified, amended or withdrawn, with the approval of the City • Commission. • Ordinance No. 1179 Page 2 Section 2. That the Company shall establish rates and • tariffs so as to allocate the authorized increase among customer classes in the same manner as proposed for its requested increase. Section 3. That the Company shall, within ten (10) days from the final passage of this ordinance, file with the City a revised Schedule of Rates and Tariffs setting forth those rates, tariffs and charges based upon an increase in total operating revenues as prescribed herein. Such Schedule of Rates and Tariffs may be modified or amended by City Commission within ten (10) days from the date of filing, otherwise same shall be considered approved as filed. Said rates, as approved, shall be effective from and after final passage of this ordinance and shall apply to each customer of the Company within the City of La Porte from and after each such customer's first regular meter reading following the effective date of this ordinance. Section 4. That the Schedules of Rates and Tariffs shall be subject to a monthly adjustment for changes in fuel cost calculated according to the formula presently in effect. Section 5. That the action of the City Commission of the • City of La Porte enacting this ordinance constitutes, on the date of its final passage, a final determination of rates for sale of electric power and energy by Houston Lighting & Power Company within the City of La Porte in accordance with Section 43 (e) of the Public Utility Regulatory Act. Section 6. Nothing in this ordinance shall be construed • now or hereafter as limiting or modifying, in any manner, the right and power of the City of La Porte under the law to regulate the rates and charges of Houston Lighting & Power for electric service within the City of La Porte. -2- • Ordinance No. 1179 Page 3 Section 7. All ordinances or parts of ordinances in conflict herewith are repealed to the extent of the conflict only. Section 8. If any provision, section, sub-section, sentence, clause or phrase of this ordinance is for any reason held to be unconstitutional, void or invalid (or for any reason unenforce- able), or shall conflict in any way with rules and regulations of the Texas Public Utility Commission, the validity of the remaining portions of this ordinance shall not be affected tizereby, it being the intention of the City Commission of_ the City of La Porte in adopting this ordinance that no portion • thereof or provision or regulation contained therein shall become inoperative or fail by reason of any unconstitutionality or invalidity of any other portion, provision or regulation, and to this end, all provisions of this ordinance are declared to be severable. PASSED AND APPROVED THIS THE 3RD day of DECEMBER , 1979. CITY OF LA PO.RTE By ATTEST: • City Cler APPROVED: ty Attorney ~ . J. i~ieza, Mayor • -3- f t 1' f ~~ t j' • ..,. J- i .t , ~ ~ ~/ DOC:~ET NO. PETITION OF HOUSTON LIGHTING & § PUBLIC UTILITY COMMISSION POWER COMPANY FOR REVIEW OF § RATE ORDiNr~~1CE OF THE CITY OF § OF TE.YAS LaPORTE § PETITION OF HOUSTON LIGHTING & POWER COMPANY FOR REVIEW OF RATE ORDINANCE OF THE CITY OF LaPORTE TO THE HONORABLE PUBLIC UTILITY CONII'~IISSION OF TEXAS: COMES NOW Houston Lighting & Power Company (HL&P) and files this its Petition for Review of Rate Ordinance of the City of LaPorte, Te:~as (the City) and in support thereof would respectfully show the Commission the following: • I. On July 2, 1979 HL&P filed with the City a Statement of Intent to Change Rates pursuant to Section 43(a} of the Public Utility Regulatory Act (Utility Act), Article 1446c, VACS. The proposed changes, if approved throughout the HL&P service area, were expected to result in a system-wide annual revenue increase of some $179.4 million, or approximately 10.5% of the adjusted total operating revenues for the test year ending March 31, 1979. HL&P's filing with the City was accompanied by a rate filing package~in the form prescribed by this Commission together with the sworn testimony of witnesses supporting the rate application. Simultaneous filings were made with other cities exercising original rate • jurisdiction over HL&.P and with this Commission, where the application was assigned Docket No. 2676. II. On December 3, 1979 the City Council took final action by passing Ordinance No. 1179 which approves rates alleged to be sufficient to produce a system-wide revenue • • • • increase of $48.5 million. A certified copy of Ordinance No. 1179 is attached hereto and made a part hereof as Exhibit A. III. The City is given notice of this Petition by serving a copy of the same upon its City Clerk at the follow- ing address: i~iargie Goyen City Clerk City of LaPorte LaPorte, Texas 77571 IV. Section 17(d) of the Utility Act gives this Commis- Sion exclusive appellate jurisdiction to review orders or • ordinances of municipalities exercising original jurisdiction over electric rates within their municipal limits. By Section 26(e) of the Act the Commission is directed to fix by final order such rates as should have been fixed by the municipality. By filing of this Petition for Review within thirty days of the final decision of the City Council, HL&P hereby invokes the appellate authority of this Commission: V. HL&P believes that the rate ordinance adopted by the City fails to provide adequate rate relief and that said ordinance fixes the rates of HL&P within the City at a level that would fail to provide overall revenues sufficient to permit HL&P to recover its operating expenses together with • a reasonable return on its invested capital as provided in Section 39 of the Utility Act. In addition, the City has failed to base its rates on the proper adjusted value of invested capital of HL&P as provided in Section 41 of the Utility Act. As evidence in support of these contentions, HL&P requests that the Commission incorporate by reference the rate filing package, supporting testimony, and hearing • record before the Commission in Docket No. 2676. -2- ~ ~ VI. HL&P further alleges said ordinance requires rates that are unreasonably preferential, prejudicial and discrimi- natory in application to various classes of customers in contravention of Section 38 of the Utility Act. VII. The City's ordinance requires that conforming rate • schedules be filed within ten days of fir_al passage. HL&P believes it is in the public interest to have uniform rates throughout its service area. Therefore, HL&P requests that this Commission declare Ordinance No. 1179 of the City to be vacated by the filing of, this Petition for Review and substitute rates based on the Examiner's Report in Docket No. 2676 as interim rates within the City pending final resolution of this appeal. HL&P further requests that the rates finally set in Docket No. 2676 be fixed by Final Order in this docket as well. WHEREFORE, HL&P requests that the Commission r: declare Ordinance No. 1179 of the City of .LaPorte to be vacated by the filing of this Petition, that the Commission institute a de novo proceeding to fix rates to be applied within the City, that interim rates be allowed to become effective at the earliest possible date and to remain effec- tive pending final resolution of this appeal, and that HL&P -3- • • be granted all other relief to which it may show itself to be entitled. Respectfully submitted, /; William R. Brown Robert A. Webb 3000 One Shell Plaza Houston, Texas 77002 (713) 229-1234 Attorneys for Houston Lighting & Power Company OF COUNSEL: Baker & Botts 3000 One Shell Plaza Houston, Texas 77002 (713) 229-1234 • CERTIFICATE OF SERVICE I hereby certify that a copy of this Petition for Review of Rate Ordinance of the City of LaPorte has been placed in the United States Mail, Certified Mail, Return Receipt Requested, addressed to: Margie Goyen City Clerk City of LaPorte LaPorte, Texas 77571 John F. Bell General Counsel Public Utility Commission of Texas 7800 Shoal Creek Blvd., Suite 450N Austin, Texas 78757 r this 4th day of December, 1979. • ~ ~1 ~ ~~' ~ ~J I Robert A. Webb RW:O1:O • -4- • THE STATE OF TEYAS X COUNTY OF HARRIS X CITY OF LA PORTE X I, Margie Goyen, City Clerk of the City of La Porte, Texas, • do hereby certify that the attached is a true and correct copy of Ordinance No. 1179 passed and approved and adopted by the City Commission of the City of La Porte at a special meeting thereof duly called and held on the 3rd day of December ~ 19~_, as same appears of record in the minutes of said meeting, at which meeting a quorum of the City Corr~nission was present and all present voted for the approval, passage and adoption of said ordinance. TO CERTIFY WHICH WITNESS MY HAND AND OFFICIAL SEAL OF the City of La Porte, this the 3rd day of December 19 79 A.D. SEAL u o ~~ ~~~ ~~ City Clerk City of La Porte, Texas • • ORDINANCE N0. 1179 • AN ORDINANCE ESTABLISHIi]G RATES TO BE CHARGED BY HOUSTON LIGHTING & POt•]ER CO^~PANY IN THE CITY OF LA PO RTE, TEXAS, PROVIDING FOR AN EFFECTIVE DATE FOR SUCH PATE SCHEDULES; PROVIDING CONDITIONS UNDER TVHICH SUCH RATE SCHEDULES ~IP.Y BE CHANGED, :IODIFIED, AMENDED OR TdITHDZA:~]N; CONTAI~]ING FINDINGS AL]D PROVISIONS RELATED TO THE SUBJECT; REPEALING ANY OTHER ORDINANCE OR PART OiZ PARTS THEREOr^ ;-dI3ICH MAY BE IN COL]FLICT HEREI4ITH; AND DECLARING Ai] E-IERGENCY . IVHEREAS, on July 21, 1979, Houston Lighting & Power Company filed with the City of La Porte, a request for an increase in rates to be charged within the City in the amount of $179.4 million per annum on a system-wide basis, and increase of approximately 10.5; and ;4HEREAS, the City Commission is of the opinion that a • lesser increase in rates should be approved for the Company; and iaHEP.EAS, the City Commission finds that a total increase of $48,500,000 will assure rates which are just and reasonable to both customers and the Company, N0~4 THEREFORE, BE IT ORDAINED BY THE CITY COP~1`'`~IISSION OF THE CITY OF LA PORTE: Section 1. That an increase in the rates of Houston Lighting & Po:ver Company for electric power and energy sold within the City of La Porte be approved in an amount such that the adjusted total system-wide operating revenues for the Comoany be increased $48,500,000 per annum, based on the adjusted test year ending • PQarch 31, 1979, which constitutes an increase of approximately 3°s. Such rates, as are approved in accordance herewith, are those under which said Company shall be authorized to render electric service and to collect charges from its customers for the sale of electric power and energy within the corporate limits of the City of La Porte, until such time as said rate schedules may be changed, modified, amended or withdrawn, with the approval of the City • Commission. • • Ordinance No. 1179 Page 2 • Section 2. That the Company shall establish rates and tariffs so as to allocate the authorized increase among customer classes in the same manner as proposed for its requested increase. Section 3. That the Company shall, within ten (10) days from the final passage of this ordinance, file with the City a revised Schedule of Rates and Tariffs setting forth those rates, tariffs and charges based upon an increase in total operating revenues as prescribed herein. Such Schedule of Rates and Tariffs may be modified or amended by City Commission within ten (10) days from the date of filing, otherwise same shall be considered approved as filed. Said rates, as approved, shall be . effective from and after final passage of this ordinance and shall apply to each customer of the Company within the City of La Porte from and after each such customer's first regular meter reading follocaing the effective date of this ordinance. Section 4. That the Schedules of Rates and Tariffs shall be subject to a monthly adjustment for changes in fuel cost calculated according to the formula presently in effect. Section 5. That the action of the City Commission of the City of La Porte enacting this ordinance constitutes, on the date of its final passage, a final determination of rates for sale of electric power and energy by Houston Lighting & Power Company within the City of La Porte in accordance with Section • 43(e) of the Public Jtility Regulatory Act. Section 6. Nothing in this ordinance shall be construed now or hereafter as limiting or modifying, in any manner, the right and power of the City of La Porte under the law to regulate the rates and charges of Houston Lighting & Power for electric service within the City of La Porte. -2- J` • • Ordinance X10. 1179 Page 3 Section 7. All ordinances or parts o~ ordinances in conflict here~~~ith are repealed to the extent of the conflict only. Section 3. If any provision, section, sub-section, sentence, clause or phrase of this ordinance is for any reason held to be unconstitutional, void or invalid (or for any reason unenforce- able), or shall conflict in any way with rules and regulations of the Texas Public Utility Commission, the validity of the remaining portions of this ordinance shall not be affected thereby, it being the intention of the City Commission of the City of La Porte in adopting this ordinance that no portion • thereof or provision or regulation contained therein shall become inoperative or fail by reason of any unconstitutionality or invalidity of any other portion, provision or regulation, and to this end, all provisions of this ordinance are declared to be severable. PASSED AIQD APPROVED THIS THE 3RD day of DECEP~IBER 1979. CITY OF LA PORTE J. J. i~iez P4ayor ATTEST: • p Ca> ity Clerk APPROVED: ~ ~~ ~ ~ City Attorney ` • -3- • DOCKET N0. PETITION OF HOUSTON LIGHTIi & POWER COMPANY FOR REVIEW RATE ORDINANCE OF THE CITY OF LaPORTE MOTION OF HOUSTON TO SET 1G § PUBLIC UTILITY COMiv1ISSI0N OF § § OF TEXAS LIGHTING & POWER COMPANY INTERIM RATES TO THE HONORABLE PUBLIC UTILITY COMMISSOIN OF TEXAS: CONIES NOW Houston. Lighting & Power Comparay (HL&P ) and files this its Motion to Set Interim Rates and in support thereof would respectfully show the Commission the following: I. On December 5, 1979 HL&P filed with the Commission a Petition for Review of Rate Ordinance of the City of • LaPorte in which HL&P sought review of Ordinance No. 1179 of the City of LaPorte pursuant to Section 17(d) of the Public Utility Regulatory Act (Utility Act), art. 1446c, VACS. In that Petition HL&P requested a de novo review of said ordinance in accord with Section 26(e) of the Utility Act. II. The City of LaPorte enacted Ordinance No. 1179 on December 4, 1979 in response to HL&P's rate application of December 4, 1979. In that application HL&P requested changes in its rates as part of a system-wide effort to secure additional revenues. Simultaneous filings were made with the City of LaPorte, other cities exercising original rate jurisdiction over HL&P, and with this Commission, where the • application was designated as Docket No. 2676. HL&P's rate application before this Commission as the subject to hearings in Docket No. 2676. On November 19, 1979 the Examiner issued a Report and Recommended Order, which will be the subject of a hearing before the Commission on December 10, 1979. • • • , • III. HL&P has filed temporary rates based upon the Examiner's Report to be effective, under bond and subject to refund, for all service taken after December 5, 1979 in all areas under the original jurisdiction of the Commission and within those municipalities acting as regulatory authorities with respect to HL&P that have not yet acted the rate appli- cation. In order to give recognition to the Commission's policy of setting a system-wide cost of service, it is appropriate to permit HL&P to charge interim rates within the City of LaPorte equal to those to be charged under bond in areas under the Commission's original jurisdiction and within the remaining municipalities. HL&P has requested in • its Petition for Review that interim rates be set pending a final disposition of its appeal. To provide equal treatment for all HL&P customers, it is appropriate to enter an order setting interim rates within the City of Houston for all electric service taken after December 5, 1979. WHEREFORE, HL&P requests that the Commission grant this Motion and issue an order setting interim rates to be charged within the City of LaPorte equal to those rates that have been made effective by HL&P under bond; such rates to be effective for all electric service taken after December 5, 1979 pending a Final Order in this docket. OF COUNSEL: Baker & Botts 3000 One Shell Plaza Houston, Texas 77002 (713) 229-1234 • Respectfully submitted, t, William R. Brown Robert A. Webb 3000 One Shell Plaza Houston, Texas 77002 (713) 229-1234 Attorneys for Houston Lighting & Power Company -2- • STATE OF TEXAS § COUNTY OF FERRIS § • Before me, the undersigned authority, on this day personally appeared Robert A. Webb who, having been by me duly sworn, upon oath stated that the statements of fact in the foregoing Motion are true and correct. Robert A. Webb Subscribed and sworn to before me on this the 5th • day of December, 1979. ,, ~ ~ ,o, / .._.-y :-~_ _ CERTIFICATE OF SERVICE I hereby certify that a copy of this Motion has been placed in the United States Mail, Certified Mail, Return Receipt Requested, addressed to: Margie Goyen City Clerk City of LaPorte City Hall LaPorte, Texas 77571 John F. Bell General Counsel Public Utility Commission of Texas 7800 Shoal Creek Blvd., Suite 450N Austin, Texas 78757 this 5th day of December, 1979. L~ RW:O1:M CJ n^ ~- /%~ Robert A. Webb Notary Public in and for Harris County, Texas -3-