HomeMy WebLinkAboutO-1986-1502
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Ordinance No. l502
AN ORDINANCE RELATING TO RATES TO BE CHARGED BY HOUSTON LIGHTING &
POWER COMPANY FOR ELECTRIC UTILITY SERVICE WITHIN THE CORPORATE
LIMITS OF THE CITY OF LA PORTE, TEXAS: CONTAINING FINDINGS AND PROVI-
SIONS RELATED TO THE SUBJECT: PROVIDING FOR A REPEALER AND FOR SEVER-
ABILITY: AND FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW.
WHEREAS, on or about March 18, 1986, Houston Lighting & Power
Company (the "Company"), filed with the City of La Porte a Statement
of Intent and Petition for Authority to Change Rates relating to
electric utility service, and proper notice thereof was duly given:
and
WHEREAS, by Ordinance No. 1496, the City Council suspended the
effective date of such proposed rate increase until April 14, 1986:
and
WHEREAS, the City Council, having considered the Company's rate
increase at a public hearing for which proper notice was duly given,
finds that such request is excessive: and
WHEREAS, the City Council having original jurisdiction over the
matter finds that a lesser increase in rates should be prescribed
for the Company: NOW, THEREFORE,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE:
Section 1. The City Council of the City of La Porte hereby finds
the requested rates of the Company to be excessive and unreasonable.
Section 2. The City Council hereby approves and adopts the
rates, adjustments, and determinations set out in Exhibit "A", attached
hereto and incorporated herein for all purposes, and additionally
finds and determines the following:
I. Findings
1. Cost of Service
The revenue requirement of the company is $3,087,698,000.00.
Adjustments were made to Operations & Maintenance Expenses, Fuel
Expenses, Purchased Power, Depreciation Expense, Other Taxes,
Federal Income Taxes, and the Return component.
It
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Ordinance No.
1502 , Page 2
a. Operations and Maintenance Expenses
Adjustments to the Company's Operation and Maintenance
Expenses amounted to $45,097,000.00. The major adjustments in-
clude a reduction in Salaries and Wages expense of $4,618,000.00,
a reduction of Limestone Operating Expenses of $1,889,000.00, a
reduction in Municipal Street Use Fees of $7,696,000.00, a
reduction in Rate Case Expenses of $1,059,000.00, elimination of
EEl dues of $331,000.00, a reduction in Gas Operation and
Maintenance Expense of $9,464,000.00, and a reduction for Non-
Recurring Maintenance of $8,550,000.00.
b. Fuel Expenses and Purchased Power
The adjustment of Fuel Expenses is a reduction of
$136,181,000.00. The adjustment to Purchased Power is a reduction
of $40,961,000.00. The Overall Fixed Fuel FActor per KWH is
$0.020386, the Distribution Level Fixed Fuel Factor per KWH is
$0.020854, and the Transmission Level Fixed Fuel Factor per KWH
is $0.019713.
c. Depreciation
The total adjustment to Depreciation Expense is a reduction
of $13,835,000.00.
d. Other Taxes
The total adjustment for all Taxes Other than Federal Income
Taxes is a net reduction of $5,Ol3,000.00.
e. Federal Income Taxes
The adjustment to the Cost of Service for Federal Income
Taxes is a reduction of $65,507,000.00.
f. Return
The rate of return on equity is 14.75 percent. The rate of
return on invested capital is 11.58 percent.
2. Invested Capital
The invested capital is determined to be $4,764,986,000.00
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Ordinance No. 1502 , Page 3
3. Adjustments to Invested Capital
The adjustments to invested capital include a reduction of
$5,496,000.00 in Plant in Service, an increase of $1,243,000.00
in Construction Work in Progress, a reduction of $2,713,000.00
in Fuel Oil Inventory, a reduction of $82,702,000.00 in Working
Cash Allowance, a reduction of $64,625,000.00 in Deferred Lime-
stone Cost, a reduction of $8,880,000.00 in Unrecovered Storm
Loss, a reduction of $ 29,878,000.00 in Deferred taxes, and a
reduction of $5,280,000.00 in Other Cost-Free Capital.
4. Revenue Deficiency
The overall non-fuel revenue deficiency is $159,759,000.00.
5. Rate Structure
a. Residential
The rate structure for the residential customer class is:
Summer: Customer Charge of $9.00 per month, which includes
250 kwh
all kwh over 251 kwh at 6.2460~ per kwh
plus: fuel charge of 2.0854~ per kwh for all kwh
Winter: Customer Charge of $9.00 per month, which includes
250 kwh
251-1,000 kwh at 6.2460~ per kwh
over 1,000 kwh at 2.9655~ per kwh
plus: fuel charge of 2.0854~ per kwh for all kwh
b. All Other Customer Classes
The rate structure for all customer classes other than
residential is that proposed in the Company's Statement of Intent and
Petition for Authority to Change Rates.
II. Related Issues
1. The City Council hereby authorizes the Company to utilize
the following deferred accounting treatment for certain expenses
related to Limestone Unit 2: Beginning on the commercial in-service
date as defined by the Public Utility Commission of Texas ("commercial
in-service date") for Limestone Unit 2 and continuing for a period of
time ending eighteen (18) months after that in-service date or upon the
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Ordinance No. 1502 , Page 4
effective date of rates set as a result of the Company's next filed
statement of intent to change rates, whichever ending date is sooner,
the Company may place into a deferred account all depreciation expense,
tax expense, and operation and maintenance expense incurred during
that time period by the Company related to Limestone Unit 2, and upon
review, approval, and adjustment of such deferred expenses by the
City inthe proceeding considering the Company's next filed statement
of intent to change rates, these deferred amounts shall be amortized
over a period of ten (10) years from the commercial in-service date
of Limestone Unit 2.
The City Council hereby orders the Company, upon the commercial
in-service date for Limestone Unit 2, to transfer its total investment
in Limestone Unit 2 from Construction Work In Progress to Plant in
Service. The City reserves the right to exclude from rate base or
other recovery any portion of the expenditures from the plant, AFUDC,
capitalized expenses, capitalized depreciation or other capitalized
costs related to Limestone Unit 2 t'.hat the City determines is not
used and useful, has been imprudently spent or incurred, or is in any
other way not lawfully includable in rate base or other recovery.
The City further reserves the right to determine the reasonableness
and prudence of any deferred expenses in the rate order in which rate
base treatment for Limestone Unit 2 is requested.
The City Council finds that all of the Company's investment in
Limestone Unit 2 as of December 31, 1985, is presently in rate base
as Construction Work in Progress.
The City Council hereby orders that the Company shall not, after
the date of final passage of this ordinance, accrue any AFUDC on any
Limestone Unit 2 investment.
2. The City Council hereby orders the Company, after the date
of final passage of this ordinance, to include in reconcilable fuel
expense for any fuel purchased form an affiliate only fuel prices at
cost, and to exclude any returns on or of equity.
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Ordinance No. l502 , Page 5
3. The City has incurred expenses for the purpose of conducting
investigations, presenting evidence, advising and representing the
governing body, and assisting with litigation in connection with the
request of the Company to change its rates. The Company shall
reimburse the City for the reasonable costs of such services pursuant
to Section 24(a) of the Public Utility Regulatory Act, TEX.REV.CIV.
STAT. ANN. art. l446c (Vernon Supp. 1986). The Mayor shall forward to
the Company an invoice or invoices for such costs together with a
request for reimbursement. The Company shall reimburse the City for
such costs incurred within thirty (30) days after having received
each such request.
III. Conclusions
1. The City has original jurisdiction over this case pursuant
to Section 43 of the Public Utility Regulatory Act.
2. The Company has the burden of establishing its revenue
deficiency under its present rates and of establishing the amount of
such deficiency that will be collected under its proposed rates
pursuant to Section 40 of the Public Utility Regulatory Act.
3. The rates prescribed herein will allow the Company to recover
its operating expenses together with a reasonable return on its
invested capital, pursuant to provision of Section 39 of the Public
Utility Regulatory Act.
4. The rates prescribed herein will permit the Company a
reasonable opportunity to earn a reasonable return upon the invested
capital used and useful in rendering service to the public over and
above its reasonably necessary operating expenses as provided by
Section 39(a) of the Public Utility Regulatory Act.
5. The rates for electric service set forth herein provide just
and reasonable and not unreasonably preferential, prejudicial, or
discriminatory rates, and are sufficient, equitable, and consistent
in application to each class of consumer, as provided by Section 38 of
.
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Ordinance No. 1502 , Page 6
the Public Utility Regulatory Act.
Section 3. The City Council hereby determines, prescribes,
establishes and authorizes the increased rates for sale or supply of
electric service by the Company within the corporate limits of the
City of La Porte as set out in this ordinance. Such increased rates
shall become effective as to each customer on or no later than the
thirtieth day after the date of final passage of this ordinance. The
Company shall be authorized to collect such rates until such time as
they may be changed, modified, amended or withdrawn in accordance
with applicable statutes and ordinances.
Section 4. The City Council hereby authorizes and directs the
City Secretary to serve the Company with a certified copy of this
ordinance which is the final determination and order of the City.
Section 5. The Company shall, within ten (10) days following
final passage and approval of this ordinance and thereafter whenever
required by applicable statutes and ordinances and whenever requested
by the City Manager, file a complete schedule of rates and tariffs
with the City Manager setting forth all of the Company's rates and
charges for utility service then in effect. The Ci ty Manager is
authorized to review, approve and require revisions to the tariff if
he determines it not be in accordance with this ordinance.
Section 6. Nothing contained in this ordinance shall be construed
now or hereafter as limiting or modifying, in any manner, the right
and power of the City under the law to regulate the rates and charges
of the Company.
Section 7. All ordinances or parts of ordinances in conflict
herewith are repealed to the extent of the conflict only.
Section 8. In the event that the Company appeals from this
order setting electric rates for the Company, the City hereby waives
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Ordinance No. 1502
Page 7
written notice of the hearing before the Public Utility Commission of
Texas on such appeal.
with respect to any such appeal, the City Council hereby authorizes
the City Attorney or his designees to represent the City and its
citizens in any and all matters in connection with such appeal and to
take any and all actions necessary and incidental thereto and to the
resolution of the matters subject to such appeal, all as may be in
the best interests of the City.
Section 9. If any provision, section, subsection, sentence,
clause, or phrase of this ordinance, or the application of same to
any person or set of circumstances is for any reason held to be
unconstitutional, void or invalid, the validity of the remaining
portions of this ordinance or their application to other persons or
sets of circumstances shall not be affected thereby, it being the
intent of the City Council in adopting this ordinance that no portion
hereof or provision or regulation contained herein shall become
inoperative or fail by reason of any unconstitutionality, voidness or
invalidity of any other portion hereof, and all provisions of this
ordinance are declared to be severable for that purpose.
Section 10. The City Council officially finds, determines,
recites and declares t.hat a sufficient written notice of the date,
hour, place and subject of this meeting of the City Council was posted
at a place convenient to the public at the City Hall of the City for
the time required by law preceding this meeting, as required by the
Open Meetings Law, TEX.REV.CIV.STAT.ANN. art. 6252-17 (Vernon Supp.
1986): and that this meeting has been open to the public as required
by law at all times during which this ordinance and the subject matter
thereof has been discussed, considered and formally acted upon. The
City Council further ratifies, approves and confirms such written
notice and the contents and posting thereof.
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Ordinance No. l502 , Page 8
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PASSED this :2.:3 day of
APPROVED this ~~ day of
ATTEST:
~ lS/~
City Secretary
, A.D. 1986.
, A.D. 1986.
Porte
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Docket No. 6765
APPLICATION FOR HOUSTON
LIGHTING & POWER COMPANY
FOR AUTHORITY TO CHANGE RATES
x
X
PUBLIC UTILITY COMMISSION
OF TEXAS
STIPULATION
TO THE HONORABLE PUBLIC UTILITY COMMISSION OF TEXAS:
WHEREAS, Houston Lighting & Power Company (HL&P) on March 18,
1986 filed an application for Rate Relief that is the subject of this
docket: and
WHEREAS, on March 18, 1986 HL&P also made a filing for rate
relief with the City of La Porte (the City); and
WHEREAS, The City ordinance on April 14, 1986 denied HL&P's
application; and
\vrlEP~AS, HL&P has appealed the action of the
City to this
Con~ission, where the appeal has been consolidated with this docket;
and
WHEREAS, the City is now in agreement that rates adopted by the
City of HOuston in its Ordinance No. 86-984 on June 18, 1986 are just
and reasonable;
NOW, THEREFORE, HL&P and the City, through their undersigned
representatives, hereby agree and stipulate as follows:
I.
HL&P and the City stipulate and agree to the dismissal of HL&P's
appeal from the rate action of the City.
II.
HL&P agrees to file, and the City agrees by necessary action of
its City Council to approve, rate schedules identical to those filed
with the City of Houston pursuant to Ordinance No. 86-984.
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III.
HL&P and the City agree that the above referenced rate schedules
will be effective for all electric service taken within the City from
and after the final action of the City Council approving such rate
schedules.
IV.
It is recognized and agreed between HL&P and the City that they
do not by filing this stipulation express agreement or concurrence
with any specific methodology for setting rates and that this
stipulation is made and filed solely for the purpose of settling and
compromising HL&P's appeal from the action of the City.
EXECUTED THIS q k DAY OF "-J C-f '- ..",
, 1986
by the under-
signed, each of whom covenants that he/she has full authority "to
enter into and bind the entity he/she represents to this stipulation.
HOUSTON LIGHTING & POWER COMPANY
tA~~"e~NEi
CITY OF LA PORTE
~~~~~
Norm Malone, Mayor .
ATTEST:
(ljuu_~~
City Secretary
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DOCKET NO. 6765
APPLICATION OF HOUSTON
LIGHTING & POWER COMPANY
FOR AUTHORITY TO CHANGE RATES
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PUBLIC UTILITY COMMISSION
OF TEXAS
JOINT MOTION TO DISMISS APPEAL
TO THE HONORABLE PUBLIC UTILITY COMMISSION OF TEXAS:
On March lB, 1986 Houston Lighting & Power Company (HL&P) filed
with the City of La Porte (the City) an Application to Change Rates
identical to the application filed with this Commission and designated
as Docket No. 6765. Subsequently on April l4, 1986 the City voted to
deny HL&P's application. HL&P took a timely appeal pursuant to ~26
of the Public Utility Regulatory Act. Pursuant to Examiners' Order
No. 5 that appeal has been consolidated into this docket.
HL&P and the City have reached an agreement set forth in the
stipulation attached hereto as Attachment A. The stipulation calls
for HL&P to file, and the City to accept, rate schedules identical to
those approved by the City of Houston in Ordinance No. 86-984 enacted
June 18, 1986. Pursuant to the Stipulation HL&P and the City have
agreed to move jointly for dismissal of HL&P's appeal from the City's
original rate action.
WHEREFORE, premises considered, HL&P and the City respectfully
request that the Commission dismiss HL&P's appeal from the City's
rate action.
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Respectfully submitted,
Attorney for Houston Lighting
and Power Company
77571
State Bar of Texas
No. 01321100
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SCHEDULE 1
CI TY OF HOUS TOI
HOUSTON lIGHTING ~ POWER COMPANY
REVENUE REQUIRElCEIIT
TEST YEAR ENDED DECEMBER 31, 1985
(OOO's)
LINE HUP CIn CITY
NO. DESCRIPTION PER BOOKS ADJUS TME NT REQUES T ADJUS TME NT RATE ORDER
---------- -------- ------- --- ---
I OPERATION AND MAINTENANCE $.594,576 $11,114 $605,690 ($45,097') $560,593
2 FUEl 1,420,262 (432,108) 9B8,154 (136,181 ) 851,973
3 PURCHASED POVER 442,802 96,454 539,256 (40,961) "98,295
4 DE PRECI A TION 177, 099 33,488 210,587 (13,835) 196,752
5 OTHER TAXES 140,185 16,507 . 156,692 (5,013) 151,679
6. INTER ON CUSTOMER DEPOSITS 0 0 2,302 (0) 2,302
.
7 FEDERAL' INCOME TAXES 262,557 77,439 339,996 (65,507) 27",1t89
8 RETURN- 495,883 121,940 617,823 (11I,209) 551,61"
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9 REVENUE REQUIREMENT $3,533,364 ($75,166) $3,UO,500 ($372,B02) $3,087,698
........... .----....-- ..--------- ...------- ....----
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EXHIBIT A
PAGE...LOF~
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LUE
110.
DESCRIPTIOII
- REYEIIUE REOUIRENEIIT
2 LESS: FUEl RE VE IIUES
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CITY OF HOUSTOI
HOUSTOII LIGHTING & POVER COIIPAIY
CALCULATIOI OF INCREASE
TEST YEAR ENDED DECEMBER 31, 1985
( 000' s )
HL&P CI TY
REOUEST ADJUSTNEIIT
$3,460,500 ($372,802)
(1,265,810) 177 , 158
(80,117) 9,069
(25,090) (1,241)
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$2,089,483 ($187,816)
......... ...-.....
3 IIUNIeI PAl STREE T USE REYE IIUES
4 OTHER REYEIIUES
5 BASE RATE RE YE NUE RE OU I RE liE lIT
IIIC RE ASE IN BASE RATE RE VE NUE S
EXHIBIT A
PAGI=' ~ OF...l4
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SCHEDULE 2
CITY TEST YEAR
RATE ORDER AS ADJUS TED
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$3,087,698 $3,500,255
(1,088,652) (1,651,171)
(71,048) (84,587)
(26,331) (22,589)
----- ----
$1,901,667 $1,741,908
......... ......--.
$159,759
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SCHEDULE 3
CITY OF HOUS TOI
HOUSTON LIGHTING C POWER COKPANY
OPERATIONS C KAUTENANCE EXPEISE ADJUSTKEITS
TEST YEAR ENDED DECEMBER 31, 1985
(OOO'S)
LINE HUP CIn CIn
NO. DESCRIPTION PER 800KS ADJUS TIlE IT REQUEST ADJUSTIlEIT RATE ORDER
-------------------- --------- ----------- --------- ---------------------
1 SALARIES & If AGES $226,920 $14,104 $241,024 ($4,618) $23&,406
2 E IlPLOYEE BE NEF ITS 29,511 (488) 29,023 (816) 28,207
3 LUIESTONE OPERATING EXPENSES 152 12,330 12,482 (1,889) 10,593
,. . STORII DAMAGES 2,076 (702 ) 1,374 0 1,374
5 STORII DAKAGES-5779 238 9915 1,234 0 1,234
6 MUNCIPAL STREET USE FEES 98,711 (19,967) 78,744 (7,696) 71 , 048
7 RATE ClSE E XPE NSES U8 757 1,255 (1,059) 1915
8 EEl DUES 414 (83) 331 (331) 0
9 R C 0 11,721 1,058 12,779 0 12,779
10 UORT. Of OTHER DEF. CHARGES. 204 0 204 0 204
11 MANAGE liE IT AUDIT 0 978 978 (652) 326
12 LE ASE AND RE IT AL 5,408 278 5,686 (318) 5,368
13 UNCOLLECTIBLE ACCOUNTS 14,419 902 15,321 (947) 14,374
14 ADVERT., CONTR. & DON. 2,803 784 3,587 (13) 3,574
15 LEGISLATIVE ADVOCACY 9 (9) 0 0 0
16 SOCIAL DUES 25 (25) 0 0 0
17 POIlER WHEELING 8,677 (6,855) 1,822 (117) 1,125
18 AIIORT. OF LIMESTOIE DEF. CHRGS 0 7,056 7,056 (7,056) 0
19 OTHER OCK E lPE ISES 192,790 0 192,790 0 192, 790
20 REDUCTION II GAS O&K EXP. (9,464) (9,4&4)
21 NE If BILtI NG PROCEDURES (255) (255)
22 ADO'L. LEGISLATIVE ADYOCACY (17) (17)
23 UNSUPPORTED & EXCESSIVE OfFICER EXP. (85) (85)
24 LE ASE & RE IT AL E lPE NSES (51) (51)
25 FUEl REFUND COSTS (248) (248)
26 MALAKOfF EXP. TO CWIP (115) (16)
27 STP 12 EXP. RECLASS. TO RATE ClSE EXP. (100) (100)
28 ION-RECURRING KAINTENAICE (8,550) (1,550)
29 AFF ILATE CHARGES (538) (538)
30 EKPLOYEE STORE EXPENSES (181 ) (181 )
-- ------ ------ --
TOTAL EXPE NSES $594,576 $11,114 Sl505, 690 ($45,097) UIO, 593
....... ....... ....... ....... .......
EXHIBIT A
PAGF' -3 OF~
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SCHEDULE 4
CITY OF HOUSTON
HOUSTOI lIGHTING C POVER COMPAIY
SUMMARY OF FUEL COSTS
TEST YEAR ENDED DECEIlBER 31, 1985
(OOO's)
lIlE HUP CIn CITY
NO. DESCRIPTION REQUES T ADJUS TIlE IT RATE ORDER
------------------ -------- ---------- ---
FUEl EXPENSE
------------
1 RECOVERABLE COSTS $875,322 ($121,279) $754,043
2 BASE RA TE FUEl 112,832 (14,902) 97.930
-------- ------ --
3 TOTAL FUEl 988,154 (136,181 ) 851,973
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PURCHASED POVER
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4 RECOVERA8lE COSTS 390,488 (55,879) 334,609
5 BASE RATE PURCHASED POIlER 148,768 14,918 1&3,686
--------- ------ -----
6 TO TAL PURCHASED POIlER 539,256 (40,961) 498,295
----- -----
7 TOTAL FUEl AND PURCHASED POWER $1,527,410 ($177,142) $1.350,268
......... ......... .........
8 BASE RATE FUEl $261,600 $16 $2&1,611
......... ......... .........
9 FUEL RE VE IUE $1,265,810 ($177,158) $1,088,652
......... ........- .........
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EXHIBIT A
PAGE.2:L OF.J.a.
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SCHEDULE 5
CIn Of HOUSTOI
HOUSTON LIGHTING' POWER COMPANY
INVESTED CAPITAL AID RETURI
TEST YEAR EIDED DECEMBER 31, 1985
(OOO'S)
LIIE HLtP CIn CIn
10. DESCRIPTIOI REQUEST AOJUS T lIE IT RA IE ORDER
----------------------- -------- ----------
PLANT IN SERVICE $5.915.823 ($5.496) $5,910,327
2 ACCUMULATED DEPRECIATION 1.201,576 0 1,201,576
----------- ------- ----
3 NE T PLANT 4.714,247 (5,496) 4,708,751
4 CONSTRUCTION II PROGRESS 676,830 1.243 678.073
5 PROPERTY HELD fOR fUTURE USE 3.613 (518) 3.095
6 NUC LEAR fUEl 118,181 (60,370) 57.811
7 FUEL OIL INVENTORY i '. 17,478 (2,713) 14,765
8 WORKING CASH ALLOWAICE 44,454 (82,702) (38.248)
9 MATERIALS AND SUPPLIES 56.662 0 56,6&2
10 PRE PA TNE ITS 15,058 (308) 14.750
11 OEfERRED LIMESTONE CHARGES 64,625 (64.625) 0
12 UNRECOVERED STORM LOSSES 8,880 (8.880) 0
13 DEfERRED TAXES (601.625) (29,878) (631,503)
14 PRE-1971 IIIVESTIIEIT TAl CREDIT (6.302) 0 (1,302)
15 CUSTOMERS DEPOSITS (32,538) 0 (32,538)
16 CUSTONER ADVAICES fOR CONSTR. (15,891) . 0 (15,891)
17 RESERVE FOR IIJURIES (5.597) 0 (5,597)
18 OTHER COST fREE CAPITAL (33,562) (5,280) (38,842)
---
19 I1VESTED CAPITAL SS.024.513 ($259,527) $4.714,986
.........-- ........... .--........
20 RA TE Of RErURI 12.3= -0.72' 11.5.
........... ........--- ...........
21 RETURN $617.823 ($6&.209) $551,114
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EXHI BIT A
PAGf:.5 OF..La..
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SCHEDULE 6
CI TY Of' HOUS TOI
HOUSTON LIGHTING & POWER COMPAI'
(OOO'S)
SUMMARY Of' CASH WORKIIG CAPITAL
WORKING CAPITAL USES
RECOMME IDEO
A"OUNT
(lEAO}/LAG
DAYS
MULTIPLIER CASH WORIIIG
(LEAO}/LAG DAYS CAPITAL
/365 DAYS REOUIREKEIT
------------------------------------------------------------
Revenue Require.ent
$3,087,698
36.25
0.0993
$306,655
WORKIIG CAPITAL SOURCES
-----------------------
Fuel $851,973 (29.47) (0.0807) ($68,784)
Purchased Power 498,295 ~. (37.50) (0.1027) (51,195)
Other oU 560,593 (17.54) (0.0481) (26,946)
Federal Incue Tues 160,139 (99.91 ) (0.2737) (43,834)
Other Tues 99,407 (180.54) (0.4946) (49,119)
Interest 247,571 (86.13) (0.2360) (58,418)
Preferred Dividends 29,391 (46.13) (0.1264) (3,715)
ESTI"ATED CAPITAL TO FINAICE THE
NET LEAD IN RECOVER OF COST OF SERVICE 4,594
Cash Cuponant 1,535
Municipal Franchise Fees 71, 048 (228.50) (0.6260) (44,478)
CASH VORKIIG CAPITAL REOUIREKEI' ($38,248)
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EXHIBIT A
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SCHEDULE 7
Cc.st of Capital
Houston Lighting & Power Cornpar.y
( O(IOS )
Percer.t e.f Wt. Av.
CC.f.,poner.t Balance Total Cost Cost of Capital
========= ===--=- _________a ---- ======-=aaa.===
---------.
Le.r'Q T e.'f., Debt $2,697,412 a) 43. 1 (I~ 8.76% (f) 3.78~
P.'efer'.'ed Stc.ck $341,348 ( b) 5.45% 8.49~ (g) 0.46"
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CC'fl1f"0r, Eq u it Y $2,725,464' (c) 43.55% 14.75% 6.42%
(Tes $494,082 (d) 7.89% 11. 58" 0.91"
=======_:11:: ====== =DD:::a=_
Tc.t a 1 $G, 258, 3(IG (e) 1 (10. 00" 11.58"
(a) RFI HOU 7-42 Page 1.
( b) HFI ....OU 7-42 Page 1.
(c) RFI HOU 7-42 Page 1.
Cd) Response to on-site i r.t et'rc.gat e..,y.
(e) RFI HOU 7.-42 Page 1.
t f) RFI HOU 7-42 Page 3.
(y) RFl HOU 7-42 Page 5.
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CITY Of' HOUSTON
HOUSTON LIGHTING & PO~R CORPANY
(OOO'S)
e
RE VE NUE BY RATE CUSS - PER CI TY RATE ORDER
Test Year Ending Dece.ber 31, 1985
Line
No.
RATE CUSS
1 RS - RESIDENTIAL SERVICE
2 MGS - RISCELU"EOUS GENERAL SERVICE
3 LGS - LARGE GEIERAL SERVICE
4 LOS-A - LARGE OVERHEAD SERVICE (A)
5 LOS-B - LARGE OVERHEAD StRVlCE (B)
6 TNP - TEXAS-NEW MEXICO PO~R CORPANY
7 IS - INTERRUPTIBLE SERVICE
B SPL - STREET AID PROTECTIVE LIGHTING SERVICE
9 GL - GUARD LIGHTING SERVICE
10 TOTAL ELECTRIC REVENUES
11 OTHER OPERATIIG REVENUES
12
TOTAL OPERA TUG REVENUES
EXHIBIT A
PAGS: ~ OF..l.A.
SCHEOOLE 8
CITY
RATE ORDER
$1,153,131
799,810
470,565
160,990
326,200
58,948
60,768
25,394
1,284
3,057,090
30,608
------
13,087,698
............
e
e
SOiEIlJLE 9
It is determined that Sheet No. El, Terms and Conditions for
Sale fo Electric Service in Section V, Service Rules and
Regulations, of the Company's Tarriff for Electric Service shall
read as follows: .
"Section V-Service Rules and Regulations
Terms and Conditions for Sale of Electric Service
Sheet No. El
Page 1 of 4
HOUSTON LIGHTING & POWER COMPANY
HL&P 90
TERMS AND CONDITIONS FOR THE SALE OF ELECTRIC SERVICE
APPLICABLE TO RATE SCHEDULES RS, RTD, MGS, LGS, LOS, ISA and ISB
I.' Electric service will be supplied in accordance with these terms and
cpnditions (as supplemented by the Company's Service Standards and Service
Rules and Regulations which are by reference incorporated herein), and any
changes required by law, and in accordance with such applicable rate
schedule or schedules as may, from time to time, be established by the
Company. However, in the case of Customers whose electrical service
requirements are of unusual size or characteristics, additional rate and
contract or service' arrangements may be required. These terms and
conditions constitute a selected list of rules from the Company's Service
Rules and Regulations. Upon request, Customer may obtain at any Company
office infor~ation on Company's policies regarding the extension of
service, ,refusal to serve, service disco'ntinuance, Customer credit,.
billing and metering.
~.. Comp~ny will make re~sonable provisions to supply steady and continuous
electric service, consistent with the- Customer's class of service, but I 1r
does not guarantee the electric service against fluctuations or
interruptions. Company will not be liable for any damages occasioned by
fluct~ations or interruptions unless it be shown that Company has not made
reasonable .provisions to supply steady and continuous electric service,
consistent with the Customer's class of servi'ce, and in the event of a
fa.i1ure to make such reasonable provisions 'Company's liability shall be IT
limited to the cost of necessary repairs of physical damage proximately
caused by the service failure to those electrical facilities of Customer
which. wer~ then equipped with the protective safeguards recommended or
. required by the then current edition of the National Electrical Code. In
nO'event shall Company be liable for damage occasioned by fluctuations or
interruptions or failure to begin supplying electric service, caused by an
act. of .God, . the publ ic enemy, unavoidable accident, fire, explosion,
. strike, 'riot,.war, order of any court or judgment granted in any bona fide
adverse legal proceeding, or action or.order of any commission or tribunal
having jurisdiction in the premises, or, without limitation by the
preceding enumeration, any act or thing reasonably beyond its control, or
for, interruptions (when Customer'has been given reasonable notice) which
are necessary for inspection, repair or cha~ges in Company's generating
equipment or its transmission or distribution system. Company may,
without liability, therefor, interrupt service to any Customer or Customers
i'n the event of an emergency arising anywhere on the interconnected system
of which it is a part, which emergency poses a threat to the area power
supply if, in its sole judgment, such action may prevent or alleviate the
emergency condition.
3. For the mutual protection of the Customer and the Company, only:authorized
employees of the Company are permitted to make and energize the
connections between the Company's service wires and the Customer's service
entrance conductors. The Company does not assume any duty of inspecting
the Customer's lines, wires, switches or other equipment and will not be
Revision Number: 8 th
Effective:
- EXH'BIT A
PAGF q. OF~
.
e
Section V-Service Rules and Regulations
Terms and Conditions for Sale of Electric Service
Sheet No. E1
Page 2 of 4
HOUSTON LIGHTING & POWER COMPANY
HL&P 90
responsible therefor. To the extent allowed by law, 7the customer agrees 1,-
to defend, indemnify and hold Company and its agents harmless from and
against all claims, causes of action, liability, the losses, costs and
expenses of any kind for personal injury, death and property damage
arising out of or resulting (a) from the design, installation, operation
or maintenance of the lines, wires, switches or other equipment on the
Customer's side of the point of delivery or (b) from energization by the
Customer of the Company's lines through operation of equipment within the
Customer's control without 24 hours advance notice to the Company's
dispatcher. The obligation to indemnify pursuant to (a) and (b) shall
apply without regard to the negligence of the Company or its agents if the
negligence of both the Customer and the Company or their respective agents
were proximate causes of such personal injury, death or property damage,
but shall not apply when proximately caused by the sole negligence of the
Company or its agents.
4. The Company will supply to one premises only one point of delivery and
only one of the standard types of service listed in the Service Standards
or one of the available transmission voltages, and Customer's installation
is to be so arranged that the Company can measure the Customer's electric
service with one meter. The Company will not install and maintain any
lines and equipment on the Customer's side of the point of delivery except
its meter. The Customer will provide, in accordance with the Company's
Service Standards and free of expense to the Company, locations for the
installation of the Company's meter and other equipment and acceptable
right of way for facilities erected solely to make service available to
Customer. The Customer will install and maintain all his wiring and
apparatus in accordance with good electric practice, all applicable lawful
regulations, and in such condition and manner as not to endanger persons
or property, or to cause impairment of the Company's service to the
Customer, or its other customers; and the Customer will obtain all
necessary permits and certificates of inspection covering his electric
installation. The Customer will not permit any other party to use the
service supplied to the Customer by the Company, or extend or connect his
installation to lines aEross or under a street, alley, lane, court or
other public or private space in order to obtain service for other
premises, even though such other premises be owned by the Customer, except
in the case of Customer owned street lighting installations.
5. Certain types of equipment used by Customers have electrical
characteristics which may cause serious fluctuations of voltage and
interfere with the service of the Company to its Customers. In such cases
the Company may decline to serve such equipment under the Company's
established rate schedules until the Customer having such equipment, has
provided at his expense, suitable apparatus to hold to reasonable limits
the effect of such fluctuations. Circumstances may require such equipment
to be supplied separately from other service, and in such event, the
Company may require additional contract arrangements and construction
charges and may meter and bill such service separately from other service
supplied to the Customer. Where the Customer owns generating equipment
and proposes to operate this equipment in parallel with and concurrent
!
Revision Number: 8 th Effective:"
EXHIBIT A
PAGE...ltJ.. OF~
. .
Section V-Service Rules and Regulations Sheet No. El
Terms and Conditions for Sale of Electric Service Page 3 of 4
HOUSTON LIGHTING & POWER COMPANY
HL&P 90
with electric service supplied by the Company, the Customer must obtain
consent from the Company.
6. The duly authorized representatives of the Company are to have access at
all reasonable hours to the Customer's premises for the purpose of
inspecting Company's wiring and apparatus, erecting, removing or replacing
its facilities, reading its meter and for all other purposes connected
with the supplying of electric service.
7. Company will upon Customer's request test the accuracy of Company's meter
used in the metering of Customer's service. Such test will be free of
charge provided Customer has not requested a similar test within a period
of four years or in any case if such meter is found to be not accurate
within the accuracy standards established by the American National
. Standards Institute, Incorporated. The maximum charge for testing a
residential Customer's meter shall be fifteen dollars (SI5.00).
Additional provisions of Company's Meter Policy, including re-billing. are
contained in Company's Service Rule~ ~nd Regulations.
8. The Company may require a deposit, if in accordance with Customer Credit
Policy, the credit of an applicant for service has not been established
satisfactorily to Company. For permanent residential, commercial and
industrial customers, such deposit shall not exceed one-sixth (1/6) of the
Customer's estimated annual billings. Company will pay interest on
required deposits at an annual rate established in accordance with the
prov;sions of Tex. Rev. Civ. Stat. Ann. art. 1440a (Vernon's Supp. 1985).
For amounts held on deposit with the Company prior to January 1. 1986. the
annual interest rate shall be 61. For amounts held on deposit with the
Company during calendar year 1986. the annual interest rate shall be
7.29%. Jf /t~f~fc~/(Jf /~~(J(Jf,Jf./Jf,/~/A~~/)fJf.Y./t./f.Y.lt't'l/ J.,}Jl/~/A'If,/(Jf/t~t~J(J't/(Jf I D
~~(J(Jf,J't,/t.(J/Jt.f.~t~f,t/(J/A'I~~t.'t/Jf,/t~~/t~~1 The Company reserves the right
(subject to Customer Credit Policy) to require an additional deposit. when
in accordance with Public Utility Commission rules. the Customer's
deposit is insufficient.' Any deposit shall not preclude the Company
(subject to Service Discontinuance Policy) from terminating the .Agreement
for Service or suspending the supply of electric service to the Customer
for any failure in the performance of the Customer's obligations under the
Agreement for Service. Additional provisions of Company's Customer Credit
Policy are contained in Company's Service Rules and Regulations.
9. Charges for electric service will normally be based on a monthly period of
apprOXimately 30 days but not more than twelve (12) bills shall be
rendered in any yearly period.
10. In the event Customer's service under this Agreement 1s suspended (such'
suspension being subject to Company's Service Discontinuance Policy)
because of tampering with Company's meters. bypassing the same, failure to
th
Revision Number: 8--
Effective:
EXHIBIT A
PAGE..1L OF-la.
. .
Section V-Service Rules and Regulations Sheet No. El
Terms and Conditions for Sale of Electric Service Page 4 of 4
HOUSTON LIGHTING & POWER COMPANY
HL&P 90
pay a delinquent account, failure to comply with deposit or guarantee
arrangements (when required by Customer Credit Policy), or, if a
reasonable opportunity to remedy the situation, violation of Company's
rules pertaining to the use of service in a manner which interferes with
the service of others, endangers persons or property, or is due to the
operation of nonstandard equipment, all guarantees, minimums and other
contract charges for the remainder of the term of the Agreement shall
thereupon become due and payable by Customer. Company agrees to accept
such sum as and for liquidated damages for such losses as Company may
suffer by reason of Customer's breach of the Agreement. An LOS Customer
shall have, as an alternative, the right to make payment of such charges
or billings as they fall due under the terms of the LOS agreement;
provided, however, in the event such LOS Customer shall fail to pay any
such charge or billing in a timely manner, Company may then, at its
option, require payment of all charges or billings in their total sum for
the unexpired term.
11. Upon the expiration of an Agreement for Service, the Company may, without
liability for injury or damage, dismantle and remove all facilities
installed for the purpose of supplying electric service to the Customer,'
and shall be under no further obligation to serve the Customer at the
point. .
12. Agreements for Service shall inure to the benefit of and be binding upon
the successors and assigns of the Customer and the Company, but no
assignments by the Customer shall be binding upon the Company until
accepted in writing by the Company. ~
EXHIBIT A
PAG~OF~