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Approval of a Resolution of the City of Lewisville, Texas Finding That Texas-New Mexico Power Company's Application for Approval to Amend its Distribution Cost Recovery Factor to Increase Distribution Rates Within the City Should be Denied; Authorizing Participation With TNMP Cities; Authorizing the Hiring of Legal Counsel and Consulting Services; Finding That the City's Reasonable Rate Case Expenses Shall be Reimbursed by the Company; Finding That the Meeting at Which This Resolution is Passed is Open to the Public as Required by Law; Requiring Notice of This Resolution to the Company and Legal Counsel.
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ADMINISTRATIVE COMMENTS:
On April 5, 2023, Texas-New Mexico Power Company (“TNMP” or “Company”) filed an Application for Approval to Amend its Distribution Cost Recovery Factor (“DCRF”) to increase distribution rates within each of the cities in their service area. In the filing, the Company asserts that it is seeking an increase in distribution revenues of $14,800,834. TNMP Cities have engaged the services of a consultant to review the Company’s filing. The consultant will review the filing and identify adjustments that should be made to the Company’s request. The resolution authorizes the City to join with other cities served by TNMP (“TNMP Cities”) to evaluate the filing, determine whether the filing complies with law, and if lawful, to determine what further strategy, including settlement, to pursue. The Public Utility Commission of Texas’s rules allow cities 60 days to act on this application. The deadline is June 2, 2023.
RECOMMENDATION:
That the City Council approve the resolution for denial as set forth in the caption above.