HomeMy WebLinkAboutResolution - 071372A - Request For Price Increases By Public Utilities - 07_13_1972W
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RESOLUTION
b7/372 A'
WHEREAS, the City Council of the City of Lubbock, by virtue of the
power vested in it by the statutes of the State of Texas, is the regulatory
agency which considers requests for price increases by public utilities under
its jurisdiction; and
WHEREAS, it is the intent of the City Council to establish rules of pro-
cedure and general criteria governing requests for public utility price increa
NOW THEREFORE
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT in the consideration of requests for price increases by public
utilities under the jurisdiction of the City Council of the City of Lubbock, the
procedure to be followed shall be as follows:
1. The public utility seeking the price increase must show affirmati
to the City Council that such requested increase in rates is justified
under the criteria established by the City Council.
2. The general criteria for public utility price increases shall be
those set out in the latest. amendment of the regulations controlling
the Economic Stabilization Act printed in the Federal Register,
Volume 37, No. 54, March 18, 1972, being the current amendment
to Title 6 - Economic Stabilization, Chapter 3, Part 300, Section
300.16a, sub -section (c), which is hereby adopted and reads as
follows:
a. The increase is cost -justified and does not reflect future
inflationary expectations.
b. The increase is the minimum required to assure continue
adequate and safe service or to provide for necessary expan-
sion to meet future requirements.
c. The increase will achieve the minimum rate of return
to attract capital at reasonable costs and not to impair the
credit of the public utility.
d. The increase does not reflect labor costs in excess of
those allowed by Price Commission policies.
e. The increase takes into account expected and obtainable
productivity gains, as determined under Price Commission
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f. Hearings before the City Council when it considers requests
for price increases by public utilities under its jurisdiction
shall provide for reasonable opportunity for participation by
all interested persons, or their representatives.
3. The City Council in approving or denying the requested price
increase shall base its decision on the criteria set forth above and
any additional criteria deemed necessary by the City Council as
required by a particular public utility. Such additional criteria,
if any, shall be set forth by the City Council in its decision.
Passed by the City Council this 13th day of July , 1972.
MORRIS W. TURNER, MAYOR
ATTEST:
Lavenia Lowe, Cit Secretary —Treasurer
APPROVED AS TO FORM:
Fred O. Senter, Jr., Cit tto ney
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