HomeMy WebLinkAbout19994 ORD - 09/29/1987AN ORDINANCE
GRANTING CENTRAL POWER AND LIGHT COMPANY'S REQUEST FOR A
RATE DECREASE FOR LARGE INDUSTRIAL CUSTOMERS IN THE CITY OF
CORPUS CHRISTI, TEXAS; PROVIDING FOR SEVERABILITY.
WHEREAS, on August 19, 1987, Central Power and Light Company (CP&L" or
"Company") filed with the City of Corpus Christi a request for interim adoption
of Rider 16, Sheet No. C-16-1 of CP&L's tariffs as set forth in the attached
Exhibit A; and
WHEREAS, the Hearing Examiner for the Texas Public Utility Commission
on August 18, 1987, granted CP&L's request for interim adoption of Rider 16
effective August 1, 1987; and
WHEREAS, the City, having duly considered the same as required by law,
is of the opinion and finds that the request will provide a reduction in rates
to Rate 68 large industrial customers which would be absorbed by CP&L and will
not increase charges to other ratepayers and will provide an incentive to large
industrial customers to stay on the system.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
CORPUS CHRISTI, TEXAS:
SECTION 1. That after notice and consideration of the request on file
with the City of Corpus Christi, the City Council of the City of Corpus Christi
finds that said request is justified and hereby approves said request effective
for CP&L's August billing cycle on an interim basis, subject to final
determination.
SECTION 2. Nothing in this ordinance contained shall be construed now
or hereafter as limiting or modifying in any manner, the right and power of the
City under the law to regulate the rates and charges of CP&L.
SECTION 3. That all ordinances, resolutions, or parts thereof, in
conflict herewith are repealed to the extent of such conflict.
SECTION 4. If for any reason any section, paragraph, subdivision,
clause, phrase, word or provision of this ordinance shall be held invalid or
unconstitutional by final judgment of a court of competent jurisdiction, it
shall not affect any other section, paragraph, subdivision, clause, phrase, word
or provision of this ordinance for it is the definite intent of this City
Council that every section, paragraph, subdivision, clause, phrase, word or
provision hereof be given full force and effect for its purpose.
08P.023.01
19994 MICROFILMED
CENtRAL POWER AND LIGHT COMPANY Home Office: P. O. Box 2121, Corpus Christi, Texas 78403,
gpL
Mayor Betty Turner
P. O. Box 9277
Corpus Christi, Texas 78469
Dear Mayor Turner:
J
August 19, 1987
I am enclosing a copy of the PUC Hearings Examiner's Order
of August 18, 1987, in regard to CPL's rate, Rider 16, Sheet No.
C16-1 of CPL's tariffs. That Order grants interim effectiveness
to this rate in the PUC's area of original jurisdiction as of
August 1, 1987. The rate will be before the full PUC for action
in mid September.
This letter is to request that the City Council acting in
its capacity as the Regulatory Authority for rates within the
city, also adopt Rider 16 on an interim basis subject to final
action. Should the PUC not adopt Rider 16 next month, CPL will
withdraw this request for adoption of such rate by the city and
will withdraw the rate.
CPL does not request any hearing on their rate as the same
will not result in an increase in revenues to,the Company but,
rather, provides for a decrease in revenues from eligible rate 68
customers electing to take advantage of the rate. In your city
the only such customer is the Naval Air Station. The loss of
revenue to the Company will be borne by the Company and will not
now or ever be charged to other ratepayers., 20'
Accordingly, by copy hereof to the City secretary, I am
requesting that this rate be filed among the tariffs of CPL as a
rate offered as of this date within your city on an interix
basis.,1 Additionally, I would appreciate the Council adopting the
F,a,, b: -t- A
2-881-5300
A Member of the Central and South West System
Central Power and Light Public Service Company of Oklahoma Southwestern Electric Power West Texas Utilities
Corpus Cham, Texas t,lsa, Oklahoma Shame pan. toulaw,a Ab,leno, Te.as
Mayor Betty Turner
Page 2.
rate on an interim basis effective for the current August billing
cycle. Should there be any questions concerning this please do
not hesitate to call me. Thank you for your assistance.
Very truly yours,
RECEIVED:
Acknowledged By:
Date:
Ral• B.=Underbrink, Jr'.•
Director'Regulatory Affairs
DOCKET NO. 7596
Rtt uLt:�t;.:i tf:?f;S
APPLICATION OF CENTRAL POWER AND Q PUBLIC UTILITY COMMISSION
LIGHT COMPANY FOR A LARGE INDUSTRIAL
POWER EXPERIMENTAL RIDER 16 OF TEXAS
ORDER GRANTING INTERIM RATES
On July 20, 1987, Central Power and Light Company (CP&L) filed an
application for approval of the proposed experimental rider for large industrial
power customers effective July 31, 1987. The Commission's jurisdiction in this
docket arises under Section 17(e) of the Public Utility_Regulatory Act (PURA),
Tex. Rev. Civ. Stat. Ann. art. 1446c (Vernon Supp. 1987). Based upqn CP&L's
representation that the service rider represents a new rate rather than a change
in rates, an effective date of August 24, 1987, was not imputed to the filing
pursuant to Section 43(a) of the PURA. By Order of July 28, 1987,
implementation of the proposed rider was, however, ,suspended beyond the
requested effective date for 150 days ending December 17, 1987, or by
superseding order of the Commission.
On August 7, 1987, a prehearing conference nook` -place with. appearances
entered by Mr. Bill Woolsey and Michael Anderson for_ ,CP&L, Mr. George Fleming
for Commission staff, and Ms. Barbara Day for Office of Public Utility Counsel
(OPC) which was granted intervenor status by Order of -July 28, 1987. At the
August 7 prehearing conference, CP&L tendered proof o'rdelivery and publication
of notice by individual notice to the parties in 'CP&L's last general rate
proceeding, two weeks successive newspaper pubrication, individual notice to
customers eligible for Experimental Rider 16, and_ communication of the contents
of the filing to Cities' officials in CP&L's service area by hand delivery,
acknowledgment requested.
On August 14, 1987, Commission'staff rate design analyst Kelso King filed a
memorandum recommending approval of the proposed tariff due to its short-term
nature and the fact that any revenue loss attributed to its usage would be borne
soley by the company's shareholders. In addition to the staff recommendation,
CP&L, the Commission's general counsel, and OPC have entered into a stipulation
agreeing to implementation of the proposed rider on the basis
DOCKET NO. 7596'
PAGE NO. 2
that any revenue loss associated with implementation of the rider will be
absorbed entirely by CP&L's shareholders and will not be passed on to ratepayers
in any manner in any future proceedings.
On August 18, 1987, a second prehearing conference took place with
appearances entered by the same parties who appeared at the first prehearing
conference with the exception of Mr. Geoffrey Gay who appeared at the second
prehearing conference for OPC. At the second prehearing conferende,,the signed
stipulation was admitted into the record together with attachments consisting of
the following:
Exhibit A
Exhibit B
Exhibit B1
Exhibit B2
Exhibit B3
Exhibit B4
Exhibit C
Exhibit D
Exhibit El
Exhibit E2
Exhibit E3
Copy of Proposed Rider 16
Copy of Public Notice and
Form of Letter to Mayors
of Cities served by CP&L
Signed Copies of the Mayors'
Letters Indicating Receipt
Copies of Registered Mail
Receipts for Large Industrial
Customers
Tear Sheets and Publishers'
Affidavits Indicating Two
Weeks. of Publication
Supplemental Tear Sheets from
Del Rio Newspaper
Testimony of Charles Pierce
Testimony of Mark D. Roberson
Resolution of the City of
Sinton in Support of Rider 16
Resolution of the City of
Three Rivers in Support of
Rider 16
Letter of Southwestern
Refining Co., Inc., Supporting
Rider 16
DOCKET NO. 7596
PAGE NO. 3
Exhibit F Letter of Mr. Judson Marsters,
Individual Consumer,
Withdrawing Complaint and
Indicating Support of Rider 16
Exhibit G Staff Recommendation of
Mr. Kelso King
CP&L also reurged its request that the proposed rider be approved effective with
the August billing cycle and that interim approval be granted so :that' CP&L can,
in fact, implement the rider as of August 1, 1987. The Commission's general
counsel and OPC indicated that they would not oppose the granting,. of interim
approval effective August 1, 1987, but neither would they endorse such, interim
approval. Pursuant to Section 16(a) of the PURA and P.U.C. PROC. R. 21.84(c),
interim approval of the proposed rider is GRANTEDeffective August 1, 1987, on
the basis that there is good cause to grant this request.
SIGNED AT AUSTIN, TEXAS on this the 1S-11.- day of August 1987.
APPROVED:
PHILLIP A
DIRECTOR
lsw
HOLDER
F HEARINGS
PUBLIC UTILITY COMMISSION OF TEXAS
id�1-1#4-.L
CORNELIA M. ADAMS
HEARINGS EXAMINER"
CENTRAL POWER AND LIGHT COMPANY
SECTION C: Service Riders
AVAILABILITY
This experimental rider is temporarily available- to large industrial
customers served under the Canpany's Large Industrial Power - 68 Rate
Schedule until the effective date of the rates, approved by the PUCT in
Company's next general retail rate case. The, rider is available for
customs who will be under a standard firm power'contract with Company for
a Contract Capacity of 12,500 XVA or more ("Contract") until January 1,
1991 or later. This rider is not available fori.RWHs taken in conjunction
with Off -Peak, Interruptible, Standby or Maintenance -Service. The Contract
for Service for custcxners eligible for this Rider' -:shall contain provisions
for a mininumi one-year notice of cancellation. Such notice of cancellation
can be provided one year prior to the expiration of the Contract. In any
event, this Rider expires on the effective date of the rates approved by
the PUCT in the Company's next general retail rate;case.
Sheet No. C16-1
Effective: 7-31-87
Original
LARGE INDUSTRIAL PC ER EXPERINENTAL.RIDER 16
CREDIT PROVISIONS
Customer's base billing under Rate 68 shall be reduced by applying a credit.
to all firm KWH using the reductions per KWH specified in this Rider. The
base billing reductions shall vary as follows *-; -
Effective Date of Rider to 12/31/88- .:..,e.608 per KWH.
1/1/89 to 12/31/89 , $:007 per KWH
1/1/90 to 12/31/90 '$'.006 per KWH
These credits shall not apply after the effective date of the rates
approved by the PUCT in the Company's next -general retail rate case,
regardless of any other rate options which aro :made available as a result
of that proceeding.
BASE RATE FUEL COST FACTOR AND GROSS RECEIPTS-YMADJUSTMOgr.T
Customer shall be subject to the provisions, of Sheet No. Dl, Section D:
Rules and Regulations Governing Electric Service, Section D.
OTHER TERMS AND PROVISIONS
If, in the next general retail rate proceeding, a customer supplied fuel
option or a rate providing an equivalent customer benefit is not made
available, any existing customer which has agreed to an extension of the
term of its Contract to qualify for this Rider shall not be obligated for
the extended term of its Contract. The customer will, however, remain
subject to, and required to provide, a one-year written cancellation
notice.
That the foregoing ordinance was read for a first time and passed to its
second reading on this the /5 day of(1(1� Q� , 19 '7 , by the
following vote:
Betty N. Turner
David Berlanga, Sr.
Leo Guerrero
Frank Mendez
That the foregoing ordinanc was read for2; e econd time and pas ed to its
third reading on this the _ day ofe�i , 19 S 7 , by the
following vote:
Clif Moss
Bill Pruet
Mary Rhodes
Mary Pat Slavik
Linda Strong
Betty N. Turner
David Berlanga, Sr.
Leo Guerrero
Frank Mendez
That the foregoing ordi
this the `„Z(41 day of
Betty N. Turner
David Berlanga, Sr.
Leo Guerrero
Frank Mendez
n
Clif Moss
Bill Pruet
Mary Rhodes
Mary Pat Slavik
Linda Strong
was ead for the third time
, 19g7 , by the
Clif Moss
Bill Pruet
Mary Rhodes
Mary Pat Slavik
Linda Strong
ak,ak
and passed finally on
following vote:
PASSED AND APPROVED, this he day of
1,
ATTEST:
ity ecretary
APPROVED:
DAY OF 5c • 1'• , 1917:
HAL GEORGE, CITY ATTORNEY
By
R.:
tant City Att
99.044.01
THE CITY OF CORPUS CHRISTI, TEXAS
19994