HomeMy WebLinkAbout031135 RES - 05/16/2017 RESOLUTION NO. 031135
RESOLUTION OF THE CITY OF CORPUS CHRISTI, TEXAS
AUTHORIZING INTERVENTION IN THE PUBLIC UTILITY
COMMISSION OF TEXAS DOCKET NO. 47015 REGARDING AEP
TEXAS INC.'S APPLICATION TO AMEND ITS DISTRIBUTION COST
RECOVERY FACTORS TO INCREASE DISTRIBUTION RATES WITHIN
THE CITY; FINDING THAT THE CITY'S REASONABLE RATE CASE
EXPENSES SHALL BE REIMBURSED BY THE COMPANY; FINDING
THAT THE MEETING AT WHICH THIS RESOLUTION IS PASSED IS
OPEN TO THE PUBLIC AS REQUIRED BY LAW; REQUIRING NOTICE
OF THIS RESOLUTION TO THE COMPANY AND LEGAL COUNSEL.
WHEREAS, the City of Corpus Christi, Texas ("City") is an electric utility customer of
AEP Texas Inc. ("AEP" or "Company"), and a regulatory authority with an interest in the rates
and charges of AEP; and
WHEREAS, the City is a member of the Cities Served by AEP ("Cities"), a membership of
similarly situated cities served by AEP that have joined together to efficiently and cost effectively
review and respond to electric issues affecting rates charged in AEP's service area; and
WHEREAS, on or about April 3, 2017 AEP filed with the City an Application to Amend
its Distribution Cost Recovery Factors ("DCRF"), PUC Docket No. 47015, seeking to increase
electric distribution rates by$28,010,174($21,365,072 for the Central Division and$6,645,102 for
the North Division); and
WHEREAS, all electric utility customers residing in the City will be impacted by this
ratemaking proceeding if it is granted; and
WHEREAS, Cities are coordinating its review of AEP's DCRF filing with designated
attorneys and consultants to resolve issues in the Company's application;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
CORPUS CHRISTI, TEXAS:
Section 1. That the City is authorized to participate with Cities in PUC Docket No.
47015.
Section 2. That subject to the right to terminate employment at any time, the City of
Corpus Christi hereby authorizes the hiring of the law firm of Lloyd Gosselink and consultants to
negotiate with the Company, make recommendations to the City regarding reasonable rates, and
to direct any necessary administrative proceedings or court litigation associated with an appeal of
this application filed with the PUC.
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Section 3. That the rates proposed by AEP to be recovered through its DCRF charged
to customers located within the City limits, are hereby found to be unreasonable and shall be
denied.
Section 4. That the Company shall continue to charge its existing rates to customers
within the City.
Section 5. That the City's reasonable rate case expenses shall be reimbursed in full by
AEP within 30 days of presentation of an invoice to AEP.
Section 6. That it is hereby officially found and determined that the meeting at which
this Resolution is passed is open to the public as required by law and the public notice of the time,
place, and purpose of said meeting was given as required.
Section 7. That a copy of this Resolution shall be sent to Melissa Gage, American
Electric Power Service Corporation, 400 West 15th Street, Suite 1520, Austin, Texas 78701 and to
Thomas Brocato, General Counsel to the Cities, at Lloyd Gosselink Rochelle & Townsend, P.C.,
P.O. Box 1725, Austin, Texas 78767-1725.
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PASSED AND APPROVED this I day of 11. , 2017.
Mayor
ATTEST:
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City Secretary
APPROVED AS TO FORM:
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City Attorney
Corpus Christi, Texas
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The above resolution was passed by the following vote:
Mayor V CA
Rudy Garza
Paulette Guajardo
Michael Hunter ,�i
Ben Molina I 4!
Joe McComb tX;:
Lucy Rubio 4' .
Greg Smith 11P
Carolyn Vaughn 111
;311. 35
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