1999-058 ORDINANCE NO 0 q '-OS~f~
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 Caty ars Statement of Intent and Apphcatlon ("Apphcat~on") to change its rates for
electric utflaty servaee an the City of Denton, Texas, as a prereqmsate to a proposed change in
electric servace rates and options, to become effective February 19, 1999 The proposed rate
changes pertain to time-of-use rates to be offered to TU Elecmc's resldentml, commercaal, and
industrial electric servace customers satuated Wlthan TU Elecmc's cemficated areas only, watNn
the City of Denton, and
WHEREAS, the City Council, as regulatory authority, may estabhsh and regulate rates of
an electric utility operating within the Caty of Denton, and may adopt rules for determining the
classification of customers and services, and the apphcaNhty of rates, pursuant to Section
36 001, Texas Utflatles Code, V T C A (1997), and
WHEREAS, as regulatory authority, the City Council shall ensure that for each elecmc
utility rate to be charged to the cmzens of the City, that any electric utility makes, demands, or
receives, ~s just and reasonable, and that the rate may not be unreasonably p/'eferentml,
preju&cml, or dascnmmatory, but must instead be sufficient, eqmtable, and consistent in
apphcauon to each class of customer an accordance w~th the provisions of Section 36 003, Texas
Utilities Code, V T C A (1997), and further that a determanatlon must be made by the City
Council, as regulatory authority, as to whether the requirements respecting equahty of rates and
servaces, pursuant to Section 36 004, Texas Utfimes Code, V T C A (1997) have been comphed
with, and
WHEREAS, the Caty Council has determaned that TU Electnc's proposed change in ItS
rates and options for electric service an the City of Denton, should be suspended to a future date,
as permitted by state law, to wit to a time mnety (90) days after the proposed effecuve date of
February 19, 1999, for the following reasons
1 That the C~ty Council of the Caty of Denton is charged w~th the duty of making a
"reasonable determanataon" of rate base, expenses, investment, rate of return, and
other relevant factors revolved ~n the proposed rate design, for electric services
provided within the mumcxpal botmdarles of the City of Denton, and
2 That the City Councd has had Insufficient time to properly rewew, analyze, and
study the proposed rate changes, and
3 That materially identical time-of-use electric rates to those proposed by TU
Electric an ~ts Apphcatlon, are now pending determination and approval at the
Public Utilities Commission of Texas ("PUC") in Docket No 17942, and at this
time the City Cotmml desires to suspend Its determination respecting the proposed
Apphcat~on tmtll such time as the PUC has ruled upon the validity or lnvahdlty of
TU Electnc's proposed rate changes, NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS
SECTION I That in accordance with, and under the authomy 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 d~rected to send or dehver 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 Apphcat~on, to officials of TU Electric
SECTION III That all of the declarations and findings contained ~n 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 port~on, section, or part of a section of this ordinance be
declared lnvahd, inoperative, or void for any reason by a court or admlmstrat~ve agency of
competent jurisdiction, such decision, opinion, or judgment shall in no way impair the remaining
portions, sections, or parts of sections of th~s ordinance, which smd remmmng provisions shall
remmn 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 ordmned
PASSED AND APPROVED tlus the /~,~/x day of~~d~.~, 1999
yK MILLER, MAYOR
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ATTEST
JENNIFER WALTERS, CITY SECRETARY
APPROVED AS TO LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
By
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