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Consideration of a Resolution of the City of Lewisville, Texas Finding that Texas-New Mexico Power Company’s (“TNMP”) Application to Change Rates Within the City Should be Denied; 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 May 30, 2018, Texas-New Mexico Power Company (TNMP or the Company) filed an application with cities retaining original jurisdiction seeking to increase system-wide transmission and distribution rates by $33.3 million. On June 21, 2018, Council approved a resolution suspending the July 5, 2018 effective date of the Company’s rate increase to allow time for further review. Under a pending settlement between parties (including TNMP Cities) and TNMP, the Company’s request is substantially reduced. Under the proposed settlement, the Company would be permitted a $10 million increase; however, that settlement remains in the process of being finalized. The requested Council action is therefore denial of TNMP’s original, $33.3 million proposed increase. Under the law, cities with original jurisdiction over this matter have 125 days from the initial filing to take final action on the application. As such, all cities with original jurisdiction will need to adopt this resolution no later than October 2, 2018.
RECOMMENDATION:
That the City Council approve the resolution as set forth in the caption above.