The URL can be used to link to this page

Home My WebLink About15309 ORD - 01/16/1980i-/6-910 AN ORDINANCE MAKING FINDINGS OF FACT; APPROVING CHANGES IN RATES WHICH, IF IMPLEMENTED IN ALL AREAS SERVED BY CENTRAL POWER AND LIGHT,' WOULD BE REASONABLY CALCULATED TO YIELD AN ADDITIONAL $65,471,000 IN REVENUES TO CENTRAL POWER AND LIGHT; APPORTIONING THE REVENUE INCREASE TO EACH CLASS OF SERVICE; DENYING PRICE ELASTICITY EFFECTS TO BE TAKEN INTO CONSIDERATION IN DEVELOPING TARIFFS; REQUESTING A STUDY ON THE RATE DIFFERENTIAL BETWEEN RESIDENTIAL AND COMMERCIAL HOT WATER HEATING AND OTHER RESIDENTIAL AND COMMERCIAL USES IN TARIFFS; MAKING AVAILABLE TOsINCORPORATED MUNICIPALITIES OPTIONAL RATES TO THE MUNICIPAL LIGHTING AND POWER SERVICE; AUTHORIZING THE COMPANY TO IMPLEMENT WITHIN THE CITY CHANGES IN RATES EFFECTIVE FEBRUARY 4, 1980; AND DECLARING AN EMERGENCY. WHEREAS, Central Power and Light Company (CP&L) has appeared before the City of Corpus Christi (the City) requesting a new rate schedule for furnishing electricity and electric service within the City of Corpus Christi; and, WHEREAS, the City of Corpus Christi has suspended implementation of the rate schedules proposed by CP&L to become effective November 5, 1979 in order to permit the City sufficient time to analyze the proposed rate changes; and, WHEREAS, the City Council has authorized the hiring of Touche-Ross and Company, rate consultants, to study said request and report findings to the City Council; and, WHEREAS, Touche-Ross and Company have completed their investigations and presented the results and recommendations to the governing body of the City both in proceedings as intervenors before the Public Utility Commission in the rural rate case over which the Commission exercises original jurisdiction and in proceedings before the City Council in the exercise of its original jurisdiction over electricity rates within the corporate limits of the City with a summary of said results and recommendations made a part hereof to the public hearing; and, WHEREAS, Touche-Ross and Company has initially recommended to the Cities that CP&L be granted a $47,370,000 increase in revenues; and, WHEREAS, after the filing of Touche-Ross and Company's recommendation it was determined that the cities in the CP&L service areas would increase their municipal gross receipts tax from 2% to 4% with a resulting $5,878,000 cost increase to CP&L, and thus, Touche-Ross and Company has modified the recommended revenue increase to $53,248,000; and, WHEREAS, CP&L has simultaneously appeared before the Public Utility Commission for a rate increase in the rural areas and the Commission staff has independently analyzed the rate increase request and recommended a $71,492,000 revenue increase; and, MICROFILMED,,. AUG 2 T90 15303 'age 2 WHEREAS, the City has, after Appropriate notice, held a public hearing to consider the rate changes proposed by CP&L; and, WHEREAS, the parties to proceedings before the Commission in the Commission's exercise of its original jurisdiction entered into a partial compromise and settlement of that case which stipulated that the Commission would allow increases designed to yield CP&L additional revenue of $65,471,000 per annum which stipulation was approved by the Commission; and, WHEREAS, the settlement amount, although in excess of the recommendation of the consultants retained by the City, was entered into based solely upon assessment of probable greater allowance by the Commission absent said stipulation and is not binding upon •the City in the exercise of its original jurisdiction; and, WHEREAS, the City Council, after hearing all evidence regarding said rate case, has carefully considered same and makes findings of fact in this ordinance and finds that a new rate schedule hereinafter set is fair, equitable, and reasonable: NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI: SECTION 1. The City Council of the City of Corpus Christi finds that the conclusions of Touche-Ross and Company are reasonable, but as a result of a need to provide higher financial strength to attract capital because of high construction costs involved in changing to other fuels, the City Council hereby determines that CP&L is authorized to implement within the City effective February 4, 1980 changes in rates which, if implemented in all areas served by CP&L, would be reasonably calculated to yield an additional $65,471,000 in revenues to CP&L. SECTION 2. The City Council determines and hereby finds that in order to collect the additional $65,471,000 in revenues the Company should apportion said revenue increase to each class of service in accordance with the cost of service alloca- tion attached hereto as Exhibit A and incorporated herein producing the return differen- tials by customer class of approximately 0.825 for residential; 1.132 for commercial and small industrial; 1.044 for large industrials;•1.095 for flat rates and 0.992 for municipal customers. SECTION 3. The City Council determines and hereby finds that CP&L should - develop charges to recover from each class the above described amounts using the same methodology as was utilized to develop the proposed charges except that no price elasticity effects shall be taken into consideration. SECTION 4. CP&L shall not include within its tariff any separate charge for gross receipt taxes or any other lawful levies by incorporated municipalities. • pa SECTION 5. CP&L is ordered to pay to theCitythe amount of funds paid by the City to the Executive Committee of the cities served by CP&L for rate consultants and attorneys to assist with the rate -making proceedings as certified as necessary and reasonable to the Company by.the Executive Committee in this case and in the 1976 rate case on or before February 14, 1980. These total expenses are estimated to be $275,000. SECTION 6. CP&L shall present to the City within six months from the effective date of the rate changes authorized by this ordinance a study of the rate differential between residential and commercial hot water heating and other residential and commercial uses; analyzing the equity and reasons for such differential and report on the feasibility of water heater tariffs. SECTION 7. CP&L shall make available to an incorporated municipality for any individual meter location electric service rate tariff Schedule 21 (General Service); Schedule 32 (Combined Lighting and Power Service); and Schedule 44 (Industiral Power) as optional rates to electric service rate tariff Schedule 78 (Municipal Lighting and Power Service) upon request by the incorporated municipality. SECTION 8. CP&L is ordered to file with the City Secretary four copies of its tariff revised in accordance with the terms of this ordinance, and sufficient to generate revenues no greater than prescribed herein within ten days from the date hereof. The City shall have ten days to review and approve the tariff as being in compliance with this ordinance. The tariff shall be deemed approved upon the expiration of this period unless notice of rejection has been given to CP&L on or before said expiration. In the event of rejection, CP&L shall have 10 additional days to refile, with the same review procedures to apply. SECTION 9. The approved revised rates shall be charged only for service rendered after February 4, 1980 or the tariff approval date, whichever is later. SECTION 10. This ordinance is final on the date of its adoption. Approval of the tariff filed in compliance herewith shall be final on the date of approval as defined by operation of this order or upon earlier notification of approval, whichever - shall first occur. SECTION 11. The City Secretary is hereby ordered to deliver a certified copy to CP&L and to the Chairman of the Executive Committee of CP&L Cities. SECTION 12. The necessity to grant a rate increase in the appropriate amount hereinabove described in order to provide CP&L with revenues herein described creates a public emergency and an imperative, public necessity requiring the suspension Page 4 i of the Charter rule that no ordinance or resolution shall be passed finally on the date of its introduction but that such ordinance or resolution shall be read at three 1 r meetings of the City Council, and the Mayor having declared such emergency and necessity to exist, and having requested the suspension of the Charter rule and that this ordinanc be passed finally on the date of its introduction and take effect and be in full force and effect from and after its passage, IT IS ACCORDINGLY SO ORDAINED, this the .40 day of January, 1980. Finally enacted this /e? day of January, 1980 ATTEST: APPROVED:,. ' // DAY OF JANUARY, 1980: J. BRUCE AYCOCK, CITY ATTORNEY gMA R THE CITY OF CORPUS CHRISTI, TEXAS PAGE 1- 1 EXHIBIT CPL -1 PROPOSED RATES _ ___ .__......._. CENTRAL TOWER AND LIGHT -COMPANY '-"--'""---" "-- -------• _ 1979 ELECTRIC COST OF SERVICE STUDY 12 MONTHS ENDING JUNE 30, 1979 CAP.ICITY'ALLUCATION METHOD:PROD FUNC-2/3 SUM PEAK 1/3 WIN PEAK. IRAN FUNC-50$ PROD PEAK, 50X AVGOEM. DIST FUNC-SUFI CLASS PEAK. _ALL DATA PRO FORMA. URIGINAL.COST RATE-BASE-IIO0X OCLD).-• REVENUE E FUEL EXPENSE DERIVED FRUM THE OPPORTUNITY SALES ARE CREDITED TO ALL FIRM CUSTOMERS. SUMMARY OF RESULTS ...---'--- ---'•--- ---_...... ._._._.-.. .. _-•-- -ELECTRIC -- -- RETAIL - DEPARTMENT SERVICE 1.061,275,438 1 255,233,405 806,0421033 161,263,333 5 •7,504,733 7,907,956 7 95,295,966 II 9 3,694,040 10 F CATASTROPHE RFC/ 3 T`)0 000 4,249,094 4,439,608 I 12 434,618 O,tIG. COST 927,493,575 900,605,717 14 OPERATING REVENUES 8001 550 1T5 792 539,601,960 AT i1I Ni ENANCE EXP OM4011 343,332,705110,454 OUT IN ALLOC ELECTRIC PLANT 1N SERVICE PUO .-----.._.-.._..--1,090,313,950 ACCUMULATED PROV FOR 11E1'I)L•C 4110 261,768, 03 NEI PLANT IN SERVICE 701 820,545,755 CONSTRUCT WORK IN PROGRESS IU 071 167,155,713 LECTRIC PLANT -FUTURE USE..._ FPL71-..-.----------- 7,715,009 NUCLEAR FUEL NUCPL 8,208,769 WORKING CAPITAL W001 25,169,175 ACCUMULATED DEFERRED INC TAX ANTI 97,956,514 .VEFER,IEU INVEST TAX CREDIT...-DITCL----- -----.3,002,187 RESERVE FOR A 3,7901000 CUSTOMER DEPOSITS CUSDL 4,249,797 CUSS ADV FOR CONST CUSAVI 434,600 TOTAL WHOLESALE SERVICE 29,038,520 6,534,798 22,503,722 5,092,440 271,076 300,013 605,060 2,660,548 81,557 103,156 0 0 267807•, 058 10,573,032 12,214,251 J 15 DPCR ISN L 1 -_ 16 TAXES OTHER THAI: INCOME TAX . TX4081------ -- 26.081,926 -----• -25,660,496 421,430 17 DEPRECIATION EXPENSE 0X4031 34,814,779 33,919,566 8951213- 18 DEFERRED TAXES TOFT1 45,759,032 44,222,050 1,536,982 19 OPER INCOME BEFORE INC TAXES OPY 108,186,550 104,680,594 3,505,,956 ,. _ 2D -RATE OF RET BEFOP,E_INC..TAXES_PRTRTI 11 664 11.622 13.078 21 RELATIVE RET 0EF0R INC TAXES PREL1 1.000 0.996 1.121 ,. 22065 FEDERAL INCOME TAXESX 7,867,126 , RETURNAFTERINCOMETAX RTRN 99,705,559 9018 • 2,892091 X24 RATE OF RETURN AFTER INC TAX RTRT1 10.750 10.749 10.788 25 RELATIVE RATE OF RETURN REL1 1.00'0 1.000 1.004 ' , • I • . • t 2. ' • EXHIBIT CPL -1 PROPOSED RATES CENTRAL POWER AND LIGHT COMPANY 1979 ELECTRIC COST OF SERVICE STUDY 12•MUNTHS ENDING JUNE 30, 1979 CAPACITY ALLOCATION METHOD:PR00 FUNC-2/3 SUM PEAK 1/3 WIN PEAK. TRAN FUNCI-500 PROD PEAK, 50% AVGDEM. DIST FDNC -SUM CLASS PEAK. —.ALL DATA PRD FORMA. URIGINAL.COST RATE.DASE 1100%-0C10). ---••-•---•-----•-•••---------•--.-- REVENUE L FUEL EXPENSE DERIVED FROM THE OPPORTUNITY SALES ARE CREDITED TO ALL FIRM CUSTOMERS. 50)141.RY OF RESULTS PAGE 1- 2 j ' RESIDENTIAL---COMMERICIA1 - C SMALL IND. OUT 1N ALLOC IDI IE) 1 ELECTRIC PLANT IN SERVICE --POO------------.------._-407,296,969 436,665,016 - ACCUMULATED PROV TUR DEPIIEC A00 100,423009 103.585,694 NET PLANT IN SERVICE POI 306,073,000 333,000,122 CONSTRUCT WORK 1111 PROGRESS 1U1071 ELECTRIC PLANT-FUTUREUSE_.._-.7•PLI11 - - NUCLEAR FUEL NUCF1 WJRKIN./ CAPITAL WOOL ACCUMULATED DEFERRED INC TAX AU1T1 1—.9 -DEFERRED INVEST TAX CREDIT.-- DI TC1-- 10 RESERVE FOR CATASTROPHE RFCI 11 CUSTOMER DEPOSITS CUSD1 12 OUST ADV FOR CONST CUSAVI —13 __ORIG. COST RATE BASE --------118X1 2 „I --5 4 , 6 7 0 TOTAL •LARGE•-•----FLAT----MUNICIPAL-•-----RETAIL-- INDUSIRIAL RATES RATES SERVICE 171 IG) 1H1 11) -162,338,659---31,291,679---23,60013151-061,275,438 36,094,120 0,759,300 5,571,114 255,233,405 125,444,531 22,534,299 18,109,201 006,042,033 53,750,376 71,002,714 32,101,248 597,725 4,010,670 161,263,333 ---.2,469,245----3,201,110--1,550,242 --17,557- -186,580--••7,504,733 2,601,422 3,545,002 1,636,297 4,060 201,175 7,907,956 9,440,511 9,307,537 4,448,331 770,104 517,619 24,484,107 36,280,791 39,379,078 14,830.936 2,664,164 2,140,997 95,295,966 ---1,112,162---.1,201,130------454,632 81,660• . 65,631•-2,921,230 ' 1,406,690 1,526,818 . 575,030 103,296 03,011 3,694,844 3,611,781 638,016 0 0 0 4,249,797 434,600 0 0 0 0 434,608 _-.332,090,008--377,465,435 --149,320/051---2.1.,074,617-20,735,606-9 00,605,717 14 OPERATING f)CVEV177S 10001 173,081,936 FI IS 0714211017 C MAINTENANCE EXP ON4o11 109,120,367 .16 TAXES OTHER THAN INCOME TAX 7X4001 . 1.0,786,704 1,1 17 DEPRECIATION EXPENSE 004031 13,224,275 18 01)60410 fA%ES 00771 15,134,102 19 OPER INCOME BEFORE INC TAXES OPY 24,816,489 20. -RATE OF P.ET BEFORE-INC_.TAXES_PRTRT1— 7 473 21 RELATIVE RET 8EFDR INC TAXES PREL1 0.641 22 FEDERAL INCOME TAXES TYTAX -4,629,139 '�. 23 RETURN AFTER INCOME TAX RTRN 29.445,628 ._. _. 24 RATE OF RETURN AFTER INC TAX RTllil— 8.867 12.165 , 25 RELATIVE RATE OF RETURN REL1 0.825 1.132 -. 2261099,827 118,140,275 9/770,149 12,501,772 539,601,960 1261767,430 01,806,825 5.073,044 7,550,789 331,110,454 --•11,137,020 •--21499,320--..- ---602,9313 634,505--25,660,496 13,860,356 4,985,255 1,102,405 747,275 33,919,566 19,224,749 8,390,727 307,497 1,077,176 44,222,050 55,110,273 20,458,140 1,804,265 2,491,427 104,680,594 14.600-----.--13 101 0 561 -12.015 it 622 1.252 1.175 0.734 1.030 0.996 9,192x330 3,700,047 -676,395 279,482 7,067,126 45,917,942 16,757,293 2,480,660 2,211,945 96,813,468 11.222 11.771 1.044 1.095 10.992 '11.000 EXHIBIT A Corpus Christi, :xas /Y day of , 1920 TO THE MEMBERS OF THE CITY COUNCIL Corpus Christi, Texas For the reasons set forth in the emergency clause of the foregoing ordinance, a public emergency and imperative necessity exist for the suspension of the Charter rule or requirement that no ordinance or resolution shall be passed finally on the date it is introduced, and that such ordinance or resolution shall be read at three meetings of the City Council; I, therefore, request that you suspend said Charter rule or requirement and pass this ordinance finally,on the date it is introduced, or at the present meeting of the City Council. • Respectfully, The Charter rule was suspended Luther Jones Edward L. Sample Dr. Jack Best David Diaz Jack K. Dumphy Betty N. Turner Cliff Zarsky THE Y OF CORPUS CHRISTI, TEXAS by the following The above ordinance was passed Luther Jones Edward L. Sample Dr. Jack Best David Diaz Jack K. Dumphy Betty N. Turner Cliff Zarsky vote: following vote: 15309 CITY OF CORPUS CHRISTI,, TEXAS MAYOR LUTHER JONES CITY COUNCIL COWSAMPLEARD NAToR ERPTEN DR. JACK BEST DAVID DIAZ JACK K. D NPHY BETTY N. TURNER CLIFF ZARSKY January 21, 1980 Mr. Robert L. Range, Executive Vice President Central Power and Light Company P. 0. Box 2121 Corpus Christi, Texas 78403 Dear Mr. Range: Enclosed is a certified copy of Ordinance No. 15309 which was passed by the City Council during their Regular Meet- ing of January 16, 1980. This ordinance pertains to the rate increase for Central Power and Light Company and is transmitted to you for your information and file. /dz Enclosure Yours very truly, . Bill G. Read City Secretary CITY MANAGER R. MARVIN TOWNSEND CITY SECRETARY BILL O. READ CITY OFFICES 901 SOUTH SHORELINE POST Dm. BOX 9177 PNONC CSM 091-0011 21P C00C 70400 CITY OF CORPUS CHRISTI, TEXAS MAYOR LUTNCR JONCE CITY COUNCIL [O wun'AOTF[K P.. DR. JACK BLOT DAVID DIAZ JACK K. DUMPNY OLTTY N. TURNER CLIFF ZAROKY r .January 18, 1980 Mr. Walter Hill, City Manager P. 0. Box 1395- Sinton, Texas 78387 Dear Mr. Hill: Enclosed is a copy of Ordinance No. 15309, pertaining to Central Power and Light Company's rate increase, which was passed by the City Council on January 16, 1980. This certified copy is for your information and file. /dz Enclosure Yours very truly, ,,ir4e€ Bill G. Read City Secretary CITY MANAGER R. MARVIN TOWNAKMO CITY SECRETARY BILL o. RKw0 CITY OFFICES 302 SONTN 814081L108 POET OFFICE 805 93T7 FRONK [SIM 884.3011 ZIP CODE 78.10E