HomeMy WebLinkAbout023509 RES - 12/15/1998RESOLUTION
1) RATIFYING AN AGREEMENT WITH CENTRAL AND
SOUTHWEST CORPORATION (CSW) REGARDING PUBLIC
UTILITY COMMISSION OF TEXAS DOCKET NO. 19265, MERGER
OF CSW AND AMERICAN ELECTRIC POWER COMPANY,
BECAUSE THE AGREEMENT WILL PROVIDE CPL RATEPAYERS
WITH GREATER RATE RELIEF THAN INITIATION OF A RATE
CASE; 2) DENYING THE REQUEST OF JOSE R. MARROQUIN
DATED SEPTEMBER 7,1998 TO INITIATE A RATE CASE BECAUSE
SUCH ACTION WOULD NOT SERVE RATEPAYERS' INTEREST IN
ASSURING THE LOWEST LEGAL ELECTRIC RATES, AND
AUTHORIZING MR. MARROQUIN TO PROCEED WITH HIS
REQUEST TO THE PUC
WHEREAS, Central and Southwest Corporation (CSW), parent company to central Power
and Light Company (CPL), deserves to merge with American Electric Power Company (AEP) and
has applied to the Public Utility Commission of Texas (PUC) for findings that the proposed business
combination is in the public interest and said application has been designated as Docket No. 19265;
and
WHEREAS, the City of Corpus Christi is a member of the Steering Committee of Cities
served by CPL and an intervenor in Docket No. 19265; and
WHEREAS, the Steering Committee, pursuant to an Order from the Administrative Law
Judge presiding over Docket No. 19265, actively participated in settlement negotiations with all
parties and ultimately entered into a non -unanimous Stipulation, pending approval by individual city
councils; and
WHEREAS, the Stipulation would produce results more favorable to ratepayers than the
Companies' application and in the case of CPL, ratepayers would receive $19 million a year in rate
relief and the assurance that the $13 million in 1999 rate relief previously ordered in Docket No.
14965 would not be contested; and
WHEREAS, certain parties to Docket No. 19265 will be opposed to rate relief and Cities
will need to maintain a vigilant role in regulatory proceedings; and
WHEREAS, on September 7, 1998, Mr. Jose R. Marroquin requested the City of Corpus
Christi to initiate a rate case regarding CPL rates; however, such a rate case would not produce
benefits to ratepayers as favorable as the Stipulation, and the request should, therefore, be denied.
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NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF CORPUS CHRISTI, TEXAS, THAT:
SECTION 1. The action of the Cities Steering Committee in reaching a Stipulation with
CSW and AEP regarding their proposed merger is hereby ratified.
SECTION 2. The request of Mr. Jose R. Marroquin dated September 7, 1998 is hereby
denied, and Mr. Marroquin is hereby authorized to proceed with his request to the Public Utility
Commission of Texas.
SECTION 3. The City's attorneys, consultants, and staff are directed to continue to
advocate rate relief in PUC Docket No. 19265 at least equivalent to that implicit in the Stipulation,
and are directed to closely monitor the proceeding to assure that executive severance packages are
not charged to ratepayers.
ATTEST:
Armando Chapa
City Secretary
Mayor, The City of Corpus Chri
1i
^Samuel L. Ne Jr
APPROVED THIS THE 1 ( DAY OF Pecesasâś“, 1998:
James R. Bray, Jr., City Attorney
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Corpus Christi, Texas
day od lP ean,ht/YJ , 19 `1
The above resolution was passed by the following vote:
Samuel L. Neal, Jr.
Javier D. Colmenero
Melody Cooper
Alex L. Garcia, Jr.
Dr. Arnold Gonzales
Betty Jean Longoria
John Longoria
Edward A. Martin
Dr. David McNichols
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023509
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