HomeMy WebLinkAbout033323 RES - 03/19/2024Resolution No.
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Resolution of the City of Corpus Christi suspending the April 4, 2024 effective date of
AEP Texas Inc.'s requested rate change to permit the City time to study the request and
establish reasonable rates; approving cooperation with the Cities served by AEP Texas
and authorizing intervention in AEP Texas Inc.'s requested Rate Change Proceedings
before the Public Utility Commission; hiring Lloyd Gosselink attorneys and consulting
services to negotiate with the Company and direct any necessary litigation and appeals;
requiring reimbursement of Cities' Rate Case Expenses; 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 on or about February 29, 2024, AEP Texas Inc. ("AEP Texas ' or "Company"),
pursuant to Public Utility Regulatory Act (` PURA") §§ 33 001 and 36.001 filed with the City of Corpus
Christi ( City') a Statement of Intent to change electric delivery rates in all municipalities exercising
original jurisdiction within its service area, effective April 4, 2024 and
WHEREAS, the City is an electric utility customer of AEP Texas and a regulatory authority with
an interest in the rates and charges of AEP Texas; and
WHEREAS, the City is a member of the Cities Served by AEP Texas ("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 Texas' service area and
WHEREAS, PURA § 36.108 grants local regulatory authorities the right to suspend the effective
date of proposed rate changes for 90 days after the date the rate change would otherwise be effective; and
WHEREAS, the City retains its rights as a city with original jurisdiction including the right to
suspend the application; and
WHEREAS, PURA § 33 023 provides that costs incurred by Cities in ratemaking activities are to
be reimbursed by the regulated utility; and
WHEREAS, the City's consultants and attorneys recommend that the City suspend the application
for further review.
Therefore, be it resolved by the City Council of the City of Corpus Christi, Texas:
Section 1. That the April 4, 2024 effective date of the rate request submitted by AEP Texas on or about
February 29 2024, be suspended for the maximum period allowed by law to permit adequate time to
review the proposed changes and to establish reasonable rates
Section 2. That the City joins other Cities Served by AEP Texas in this proceeding and, subject to the
right to terminate employment at any time, hereby authorizes the hiring of Thomas Brocato of Lloyd
Gosselink Rochelle and Townsend, P.C, and consultants to review the Company's filing, negotiate with
the Company make recommendations regarding reasonable rates and to direct any necessary
administrative proceedings or court litigation associated with an appeal of city action.
Section 3. That the City shall work with Cities Served by AEP Texas in the review and evaluation of
whether the proposed rates are appropriate, fair, just, and reasonable; and, intervene as a necessary party
in the Public Utility Commission of Texas' consideration of AEP Texas' rate filing in Docket No. 56165
as it affects the customers in the unincorporated areas of AEP Texas' service territory.
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Section 4. That the City's reasonable rate case expenses shall be reimbursed by AEP Texas.
Section 5. 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 6. A copy of this Resolution shall be sent to AEP Texas, care of Jennifer Frederick, American
Electric Power Company, 400 West 15th Street, Suite 1520, Austin, Texas 78701
(aepaustintxaep.com), and to Thomas Brocato at Lloyd Gosselink Rochelle & Townsend, P.C., 816
Congress Avenue, Suite 1900, Austin, Texas 78701 (tbrocato1g1awfirm.com).
PASSED AND APPROVED this 1CP
MAYOR
APPROVED A TO FORM:
ity Attorney
day of 11Y\iC: , 2024.
ATTEST:
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033323