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Home My WebLink AboutResolution - 2004-R0279 - Rate Change Application - XCEL Energy - 06/09/2004ORDER AND RESOLUTION Resolution No. 2004-R0279 June 9, 2004 Item No. 51 AN ORDER AND RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LUBBOCK SITTING AS A REGULATORY AUTHORITY PURSUANT TO SECTION 33.001 OF THE TEXAS UTILITIES CODE, WITH REGARD TO A RATE CHANGE APPLICATION FILED BY SOUTHWESTERN PUBLIC SERVICE COMP ANY DIBI Al XCEL ENERGY ("SPS") WITH THE CITY. WHEREAS, pursuant to Section 33.001 of the TEXAS UTILITIES CODE, the City of Lubbock has exclusive original jurisdiction over the rates, operations, and services of an electric utility operating within the corporate limits of the City of Lubbock; and WHEREAS, SPS has heretofore filed a Application for Rate Change and Statement of Intent to Terminate or Change Tariffs on June 1, 2004; and WHEREAS, such proposed change will result in very little impact for the customers of SPS; and WHEREAS, SPS has represented to the City Council of the City of Lubbock that such proposed change is not a "major change" as defined by Section 36.101 of the TEXAS UTILITIES CODE; and WHEREAS, such proposed change is not a "major change" requiring a public hearing under the provisions of Sections 36.101and36.105 of the TEXAS UTILITIES CODE, also known as the Public Utility Regulatory Act ("PURA"); and WHEREAS, pursuant to the representations made by SPS in their Application for Rate Change and Statement of Intent to Terminate or Change Tariffs, good cause exists for implementing such rates; NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK~ THAT, pursuant to the applicable provisions of the TEXAS UTILITIES CODE a hearing in this proceeding is waived, and pursuant to the representations made by SPS in their Application for Rate Change and Statement of Intent to Terminate or Change Tariffs, SPS shall be entitled to place into effect for usage on and after June 1, 2004 its proposed schedule of electric rates filed with the City Secretary of the City of Lubbock on April 30, 2004, which rate changes are reflected on the tariffs and schedules attached hereto. In a4EHtieR, 8PS's tmiffs for LS:t:e PaymW!tt lti<ler ...a Rcsidentiol l::ote P"""""'1t Rider silo!! 7a ... ~ ~ ..... I, ~Q04. June ORDERED AND RESOLVED by the City Council this th day of-May, 2004. ATTEST: ~~4 b '~~~ Rebecca Garza, City Secretary APPROVED AS TO CONTENT: sistant City Manager APPROVED AS TO FORM: Matthew L. Wade, Assistant City Attorney Ccdocs/SPSRateChangeReso. May 13,2004 ccdocs/SPSRateChangeReso. May 13,2004 Regular City Council Meeting June 9, 2004 Council Members Martin and Boren had concerns about the motion being made before this item was clarified. Discussion was then had. Those speaking were: Mr. Dennis; David Langston, attorney representing Prime Campus, LLC and On Track Ministries; and Star Schulke, representing the ownership of University Plaza. Linda Chamales, Assistant City Attorney answered questions from Council. Motion carried: 5 Yeas, 2 Nays. Council Members Boren and Martin voted Nay. (51.) Resolution No. 2004-R0279 authorizing a rate change application filed by Southwestern Public Service Company (Xcel Energy) for their ratepayers in Lubbock. Council requested that this item be held over in order to gain more specific information regarding the fiscal impact that these tariff changes will have on City revenues. Xcel Energy has calculated that the annual impact on their contribution to the City of Lubbock franchise fees would be a decrease in payment of $4,241.54. Xcel Energy's attachment outlining their figures is provided as back up. The City Council will consider this item as a regulatory authority in accordance with the Texas Utility Code. Because Southwestern Public Service Company (SPS) is making this request to increase rates in certain areas, Council is required to consider the proposed changes. The changes in SPS 's rate structure are as follows: Return Check Charge will decrease from $15 to $12.50. This change will affect all classes of customers within the City, approximately 28, 700 customers. The reconnect fee will increase from $15 to $20. This change will affect all classes of customers within the City, approximately 28,700 customers. Termination of the Late Payment Rider, which allows SPS to apply late payment charges, currently at 5 percent, to their non-residential customers. This Late Payment Rider currently takes effect after 21 days, and with its termination the effective date becomes 16 days, which will be consistent with SPS's credit policies for its other non-residential customers in Texas. This change will affect approximately 5,150 customers and will include all classes, except residential. Revision .of the Church Service Tariff, which will apply late payment charges, currently at 5 percent to occur after 16 days. Currently, the late service payment charge takes effect after 21 days. Again, this change will create consistency with the credit policies for other non-residential customers in Texas. This change will affect approximately 45 customers. 37 Regular City Council Meeting June 9, 2004 Termination of the Residential Late Payment Rider, which will eliminate the 5 percent late payment charge for residential customers. This change will affect only the residential class of customers, which include approximately 23,540 customers. FISCAL IMPACT: Xcel Energy has calculated that the annual impact on their contribution to City of Lubbock franchise fees would be a decrease in payment of $4,241.54. Xcel Energy's attachment outlining their figures is provided as back up. Staff recommended approval of this resolution. Motion was made by Council Member Martin, seconded by Council Member Gilbreath to pass Resolution No. 2004-R0279 with the exception of the item dealing with deleting the 5% late charge on residential and not granting that part ofit. Motion carried: 7 Yeas, 0 Nays. (52.) Resolution No. 2004-R0280 authorizing the Mayor to adopt an amended travel policy for the Mayor and City Council. Council member Boren requested that a travel policy be outlined for the City Council when they travel on business. The policy would require that City Council approve a travel budget of $21,000 a year, to be divided by all seven Council members. FISCAL IMPACT: $21,000 to be budgeted for fiscal year 2004-2005. Recommended for approval by Council Member Gary Boren. Motion was made by Council Member Boren, seconded by Council Member DeLeon to pass Resolution No. 2004-R0280 with the last sentence of No. 4 of the City Council Travel/Business Expense Policy reading as follows: "Original receipts must be attached to the expense report." Motion carried: 7 Yeas, 0 Nays. (53.) Consider a request from the Lubbock Sports Authority for a mid-year increase of $11,428 for fiscal year 2003-2004 budget. The Lubbock Sports Authority (LSA) has been operating under the premise that the $16, 702 received in December of 2003 was to be allocated to the current fiscal year's budget. During the revised budget process, LSA learned that $11,428 was actually to be allocated to last year's budget. As this point in the year, the LSA has allocated all those dollars for specific events. The LSA i.s not confident they will remain within its budget for the 2003-04 fiscal year without the $11,428. Therefore, the LSA is requesting $11,428 be transferred from the existing Hotel Occupancy Tax Fund to LSA. 38 Resolution No. 2004-R0279 ATrACBMENT CURRENT TARIFF SHEETS TO BE AMENDED OR TERMINATED Revised (Showing red-line changes) Church Service Tariff No. 3113.4 Miscellaneous Service Charges Tariff No. 7005.2 Terminated Residential Late Payment Rider Tariff No. 1010.3 D E L E T E D Late Payment Rider (non-Residential) Tariff No. 2011.3