HomeMy WebLinkAbout031766 RES - 05/21/2019 RESOLUTION OF THE CITY OF CORPUS CHRISTI, TEXAS SUSPENDING THE
JUNE 5,2019 EFFECTIVE DATE OF AEP TEXAS INC.'S REQUESTED RATE CHANGE
TO PERMIT TIME TO STUDY THE REQUEST AND TO ESTABLISH REASONABLE
RATES; APPROVING COOPERATION WITH THE CITIES SERVED BY AEP TEXAS
AND AUTHORIZING INTERVENTION PROCEEDINGS BEFORE THE PUBLIC
UTILITY COMMISSION; HIRING ATTORNEYS AND CONSULTING SERVICES;
AND REQUIRING REIMBURSEMENT OF CITIES' RATE CASE EXPENSES
WHEREAS, on or about May 1. 2019, AEP Texas Inc. ("AEP Texas" or "`Company"),
pursuant to Public Utility Regulatory Act ("'PURA") §§ 33.001 and 36.001 filed with the City of
Corpus Christi. Texas ("City") a Statement of Intent to change electric delivery rates in all
municipalities exercising original jurisdiction within its service area, effective June 5, 2019; and
WHEREAS, the City is an electric utility customer of AEP Texas and a regulatory
authority with an interest in the rates and charges of AEP Texas; and
WHEREAS, the City is a member of the Cities Served by AEP Texas ("Cities"), a
membership of similarly situated cities served by AEP that have joined together to efficiently and
cost effectively review and respond to electric issues affecting rates charged in AEP Texas' service
area; and
WHEREAS, PURA § 36.108 grants local regulatory authorities the right to suspend the
effective date of proposed rate changes for ninety (90) days after the date the rate change would
otherwise be effective; and
WHEREAS, the City retains its rights as a city with original jurisdiction including the
right to suspend the application; and
WHEREAS, PURA § 33.023 provides that costs incurred by Cities in ratemaking
activities are to be reimbursed by the regulated utility; and
WHEREAS, the City's consultants and attorneys recommend that the City suspend the
application for further review.
THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
CORPUS CHRISTI, TEXAS:
SECTION 1. That the June 5, 2019. effective date of the rate request submitted by AEP
Texas on or about May 1. 2019, be suspended for the maximum period allowed by law to permit
adequate time to review the proposed changes and to establish reasonable rates.
SECTION 2. That the City joins other Cities Served by AEP Texas in this proceeding
and. subject to the right to terminate employment at any time. hereby authorizes the hiring of
Thomas Brocato of Lloyd Gosselink Rochelle and Townsend. P.C. and consultants to review the
Company's filing. negotiate with the Company. and make recommendations regarding reasonable
7836500 031766
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rates and to represent the City in any necessary administrative proceedings or court litigation
associated with an appeal of City action.
SECTION 3. That the City shall work with Cities Served by AEP Texas in the review and
evaluation of whether the proposed rates are appropriate, fair,just, and reasonable; and, intervene
as a necessary party in the Public Utility Commission of Texas' consideration of AEP Texas' rate
filing in Docket No. 49494 as it affects the customers in the unincorporated areas of AEP Texas'
service territory.
SECTION 4. That the City's reasonable rate case expenses shall be reimbursed by AEP
Texas.
SECTION 5. That it is hereby officially found and determined that the meeting at which
this Resolution is passed is open to the public as required by law and the public notice of the time,
place, and purpose of said meeting was given as required.
SECTION 6. A copy of this Resolution shall be sent to AEP Texas, care of Jennifer
Frederick, American Electric Power Company, 400 West 15th Street, Suite 1520, Austin, Texas
78701 (jjfrederick@aep.com), and to Thomas Brocato at Lloyd Gosselink Rochelle & Townsend,
P.C., 816 Congress Avenue, Suite 1900, Austin, Texas 78701 (tbrocato(a,,lglawfirm.com).
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PASSED AND APPROVED this ok day of 11 , 2019.
MA 14-1 R
ATTEST:
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Ci Secretary
APPROVED AS TO FORM:
City Attorney
Corpus Christi, Texas
a �1'
day of .}1\(\-0,4,7 , 2019
The above resolution was passed by the following vote:
7836500 2
Joe McComb
Roland Barrera a'11-11kI
Rudy Garza I
Paulette M. Guajardo I.I,
Gil Hernandez I I
Michael Hunter / /
Ben Molina 4
Everett Roy ,
Un
Greg Smith Q
ATTEST: CITY OF CORPUS CHRISTI
111-12.44-4
Re ca Huerta Joe1 omb
City Secretary May h
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7836500 3