HomeMy WebLinkAbout032438 RES - 05/18/2021RESOLUTION NO.
032438
A RESOLUTION OF THE CITY OF CORPUS CHRISTI, TEXAS FINDING
THAT AEP TEXAS INC.'S APPLICATION TO AMEND ITS
DISTRIBUTION COST RECOVERY FACTORS TO INCREASE
DISTRIBUTION RATES WITHIN THE CITY SHOULD BE DENIED;
AUTHORIZING PARTICIPATION WITH THE CITIES SERVED BY AEP
TEXAS; AUTHORIZING HIRING OF LEGAL COUNSEL; 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 6, 2021 AEP filed with the City an Application to Amend
its Distribution Cost Recovery Factor ("DCRF"), PUC Docket No. 51984, seeking to increase
electric distribution rates by approximately $54.56 million (an approximately $2.60 increase to the
average residential customer's bill from the rates just approved in the Company's rate case); 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; and
WHEREAS, Cities members and attorneys recommend that members deny the DCRF.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
CORPUS CHRISTI, TEXAS:
Section 1.
51984.
That the City is authorized to participate with Cities in PUC Docket No.
Section 2. That subject to the right to terminate employment at any time, the City of
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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SCANNED
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 Leila Melhem, 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, 816
Congress Ave., Suite 1900, Austin, Texas 78701.
PASSED AND APPROVED this
ATTEST:
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APPROVED AS TO FORM:
City Attorney
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PASSED AND APPROVED on the )(6day of MO, , 2021:
Paulette M. Guajardo
Roland Barrera
Gil Hernandez
Michael Hunter
Billy Lerma
John Martinez
Ben Molina
Mike Pusley
Greg Smith
ATTEST: S'ITY OF CORPUS CHRISTI
Rebecca Huerta
City Secretary
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aulette M. Guajardo
Mayor