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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 That all ordinances, resolutions, or parts thereof, in conflict herewith are repealed to the extent of such conflict.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