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HomeMy WebLinkAbout19720 ORD - 05/01/19870 A RESOLUTION EXPRESSING OPPOSITION TO SENATE BILL 1221 AND HOUSE BILL 1770 WHICH WOULD MAKE IT EASIER TO INCLUDE CONSTRUCTION WORK IN PROGRESS IN UTILITIES RATE BASE AND ELIMINATE REASONABLE REIMBURSEMENT TO CITIES FOR COSTS OF EMPLOYING EXPERTS IN RATE MAKING PROCEEDING; AND DECLARING AN EMERGENCY. WHEREAS, Senate Bill 1221 and House Bill 1770 would make it far easier to include construction work in progress in the utility's rate base rather than the present standard which requires the company to demonstrate that inclusion of such costs is necessary to its financial integrity; and WHEREAS, the bills would require such costs to be included unless the PUC finds imprudence which would effectively shift the burden of justification from the utility to ratepayers; and WHEREAS, it is much more difficult to make an accurate prudence determination on a piecemeal basis prior to completion of a major project, the scales will be heavily tilted against ratepayers and a precedent will be established in piecemeal cases to make it even more difficult to exclude imprudent costs; and WHEREAS, these bills would eliminate reasonable reimbursement to municipalities for costs of employing experts in ratemaking proceedings; and WHEREAS, although they cannot match the resources of the utilities, cities have provided a reasonably effective countervailing viewpoint to utilities' inflated rate requests; and WHEREAS the amendment would require city taxpayers to shoulder a heavy burden if they wish to effectively participate in rate cases and this burden comes at the very time cities and all levels of government are strapped for resources and will result in less effective city participation; and WHEREAS, the attorney general would be prohibited from advocacy before the Public Utility Commission thereby removing a potentially effective voice on behalf of the State as a consumer; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. That the City Council expresses its opposition to Senate Bill 1221 and House Bill 1770. SECTION 2. That upon written request of the Mayor or five Council members, copy attached, to find and declare an emergency due to the need for efficient and effective administration of City affairs, such finding of an emergency is made and declared requiring suspension of the Charter rule as to 05P.024.01 19720 MICROFILMED consideration and voting upon ordinances or resolutions meetings so that this resolution is passed and shalljake reading as an emergency measure this thea $� day of ATTEST: City Secretary MAYO APPROVED: 1 DAY OF /1,1 , 1937 HAL GEORGE, CITY ATTORNEY By 0_0_ Assisttant C 05P.024.01 ney R at three regular effect upon first , 19 5'f THE CITY OF CORPUS CHRISTI, TEXAS Corpus Christi, Texas a8I'% day of , 1987 TO THE MEMBERS OF THE CITY COUNCIL Corpus Christi, Texas For the reasons set forth in the emergency clause of the foregoing ordinance or resolution, an emergency exists requiring suspension of the Charter rule as to consideration and voting upon ordinances or resolutions at three regular meetings; I/we, therefore, request that you suspend said Charter rule and pass this ordinance or resolution finally on the date it is introduced, or at the present meeting of the City Council. Respectfully, Respectfully, Council Members OR J THE CITY OF CORPUS CHRISTI, TEXAS The above ordinance was passed by the following vote: Betty N. Turner David Berlanga, Sr. Leo Guerrero Frank Mendez Clif Moss Bill Pruet Mary Rhodes Mary Pat Slavik Linda Strong 99.045.01 19720