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HomeMy WebLinkAbout1999-058ORDINANCE NO R AN ORDINANCE OF THE CITY OF DENTON, TEXAS SUSPENDING THE PROPOSED RATE CHANGE SET FORTH IN THE STATEMENT OF INTENT AND APPLICATION FILED ON JANUARY 15, 1999 BY TEXAS UTILITIES ELECTRIC COMPANY FOR TIME - OF -USE RATE OPTIONS PERTAINING TO THE SALE OF ELECTRIC SERVICE TO ITS RESIDENTIAL, COMMERCIAL, AND INDUSTRIAL CUSTOMERS IN THE CITY OF DENTON, TEXAS, FOR NINETY DAYS BEYOND THE INTENDED EFFECTIVE DATE, ADOPTING DECLARATIONS AND FINDINGS IN THE PREAMBLE, PROVIDING THE REASONS THEREFOR, PROVIDING FOR A SEVERABILITY CLAUSE, AND PROVIDING FOR AN EFFECTIVE DATE WHEREAS, on January 15, 1999 Texas Utilities Electric Company ("TU Electric") filed with the City its Statement of Intent and Application ("Application") to change its rates for electric utility service in the City of Denton, Texas, as a prerequisite to a proposed change in electric service rates and options, to become effective February 19, 1999 The proposed rate changes pertain to time -of -use rates to be offered to TU Electric's residential, commercial, and industrial electric service customers situated within TU Electric's certificated areas only, within the City of Denton, and WHEREAS, the City Council, as regulatory authority, may establish and regulate rates of an electric utility operating within the City of Denton, and may adopt rules for determining the classification of customers and services, and the applicability of rates, pursuant to Section 36 001, Texas Utilities Code, V T C A (1997), and WHEREAS, as regulatory authority, the City Council shall ensure that for each electric utility rate to be charged to the citizens of the City, that any electric utility makes, demands, or receives, is lust and reasonable, and that the rate may not be unreasonably preferential, prejudicial, or discriminatory, but must instead be sufficient, equitable, and consistent in application to each class of customer in accordance with the provisions of Section 36 003, Texas Utilities Code, V T CA (1997), and further that a determination must be made by the City Council, as regulatory authority, as to whether the requirements respecting equality of rates and services, pursuant to Section 36 004, Texas Utilities Code, V T C A (1997) have been complied with, and WHEREAS, the City Council has determined that TU Electric's proposed change in its rates and options for electric service in the City of Denton, should be suspended to a future date, as permitted by state law, to wit to a time ninety (90) days after the proposed effective date of February 19, 1999, for the following reasons 1 That the City Council of the City of Denton is charged with the duty of making a "reasonable determination" of rate base, expenses, investment, rate of return, and other relevant factors involved in the proposed rate design, for electric services provided within the municipal boundaries of the City of Denton, and 2 That the City Council has had insufficient time to properly review, analyze, and study the proposed rate changes, and That materially identical rime -of -use electric rates to those proposed by TU Electric in its Application, are now pending determination and approval at the Public Utilities Commission of Texas ("PUC") in Docket No 17942, and at this time the City Council desires to suspend its determination respecting the proposed Application until such time as the PUC has ruled upon the validity or invalidity of TU Electric's proposed rate changes, NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS SECTION I That in accordance with, and under the authority of Section 36 108 (a), Texas Utilities Code, V T C A (1997), the proposed rate changes proposed by TU Electric in its Application, respecting its rates for electric service in the City of Denton, be, and the same are hereby suspended for a period of ninety (90) days after February 19, 1999, the date on which the proposed rates of TU Electric would otherwise have gone into effect, until May 20, 1999 SECTION II That the City Manager is hereby directed to send or deliver a copy of this ordinance, which shall constitute a written statement of the City of Denton's reasons for suspending the operation of the rate change Application, to officials of TU Electric SECTION III That all of the declarations and findings contained in the preamble to this ordinance are made a part hereof and shall be fully effective as a part of the ordained subject matter of this ordinance SECTION IV That should any portion, section, or part of a section of this ordinance be declared invalid, inoperative, or void for any reason by a court or administrative agency of competent jurisdiction, such decision, opinion, or judgment shall in no way impair the remaining portions, sections, or parts of sections of this ordinance, which said remaining provisions shall remain in full force and effect SECTION V That this ordinance shall take effect, and shall be in force and effect from and after its passage, and it is hereby so ordained PASSED AND APPROVED this the P day of , 1999 K MILLER, MAYOR Page 2 ATTEST JENNIFER WALTERS, CITY SECRETARY By ltw APPROVED AS TO LEGAL FORM HERBERT L PROUTY, CITY ATTORNEY By ;4- S \Our Oocumente\0rdmence WMU Elavic Rate Smpemmn 1 15 doe Page 3