HomeMy WebLinkAboutResolution - 2022-R0391 - Deny Southwestern Public Service Company RatesResolution No. 2022-RO391
Item No. 5.30
September 13, 2022
RESOLUTION NO. 2022-RO391
A RESOLUTION BY THE CITY OF LUBBOCK, TEXAS ("CITY")
DENYING SOUTHWESTERN PUBLIC SERVICE COMPANY'S
PROPOSED SURCHARGE IN CONNECTION WITH FINAL RATES
APPROVED RELATED TO ITS STATEMENT OF INTENT
SUBMITTED ON ABOUT FEBRUARY 8, 2021; AUTHORIZING THE
CITY'S CONTINUED PARTICIPATION WITH OTHER CITIES IN
THE ALLIANCE OF XCEL MUNICIPALITIES ("AXM") AND
PARTICIPATION IN RELATED RATE PROCEEDINGS;
AUTHORIZING THE HIRING OF ATTORNEYS AND CONSULTANTS;
REQUIRING REIMBURSEMENT OF REASONABLE LEGAL AND
CONSULTANT EXPENSES; FINDING THAT THE MEETING
COMPLIES WITH THE OPEN MEETINGS ACT; MAKING OTHER
FINDINGS AND PROVISIONS RELATED TO THE SUBJECT
WHEREAS, Southwestern Public Service Company ("SPS" or the "Company") filed a
Statement of Intent with the City and with the Public Utility Commission of Texas ("PUCT")
on or about February 8, 2021, to increase its base revenues for its Texas retail service area by
approximately $143.3 million; and
WHEREAS, the Public Utility Commission of Texas ("PUCT") approved a settlement
reached by SPS, the Alliance of Xcel Municipalities ("AXM"), and other parties granting SPS
an increase of $88.5 million; and
WHEREAS, under state law and under the terms of the settlement reached in SPS's
general rate case, SPS filed its request for a net surcharge of about $88.9 million, including
interest of about $5.6 million related to PUCT Docket Nos. 51802, 51644, and 52446; and
WHEREAS, SPS also proposes to implement the net surcharge over a one-year period,
from October 1, 2022 through September 30, 2023, and to true up the amounts actually
surcharged or refunded against the amounts authorized by the Commission to be surcharged or
refunded; and
WHEREAS, the City is a regulatory authority under the Public Utility Regulatory Act
("PURA") and under Chapter 33, §33.001 et seq. of PURA has exclusive original jurisdiction
over SPS's rates, operations, and services within the municipality; and
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SPS Surcharge Application
Filed on or About July 1, 2022
Denial Resolution
WHEREAS, under PURA § 33.025(a), the City has standing in each case before the
Public Utility Commission of Texas that relates to an electric utility providing service in the
City; and
WHEREAS, in order to maximize the efficient use of resources and expertise in
reviewing, analyzing, and investigating SPS's rate request and its changes in tariffs it is prudent
to coordinate the City's efforts with a coalition of similarly situated municipalities; and
WHEREAS, the City, in matters regarding applications by SPS to change rates, has in
the past joined with other local regulatory authorities to form the Alliance of Xcel
Municipalities ("AXM") and hereby continues its participation in AXM; and
WHEREAS, SPS's request for a surcharge consists of numerous complex calculations
premised on various billing determinants and corresponding rates; and
WHEREAS, after review of SPS's application for a surcharge, SPS failed to establish
that its requested surcharge is just and reasonable.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL/COMMISSION
FOR THE CITY OF LUBBOCK, TEXAS THAT:
Section 1. The findings set out in the preamble are in all things hereby approved.
Section 2. SPS's application fails to provide sufficient information to justify the
adoption of SPS's proposed surcharges and thus SPS failed to show that its proposed
surcharges are just and reasonable.
Section 3. The City hereby DENIES SPS's proposed surcharges.
Section 4. The City authorizes intervention in proceedings related to SPS's application
before the Public Utility Commission of Texas and any related proceedings in any courts of
law.
Section 5. The City continues its participation with other cities in a coalition of cities
known as the Alliance of Xcel Municipalities ("AXM") with the understanding that the
Steering Committee of AXM is to provide direction and guidance to Special Counsel
representing AXM.
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Denial Resolution
Section 6. The City, as part of AXM, hereby retains Herrera Law & Associates,
PLLC as Special Counsel to represent the City with regard to SPS's requested increase in rates
and related proceedings before local and state regulatory authorities and any court of law and
authorizes Special Counsel to employ such rate experts as may be necessary for review and
evaluation of SPS's rate application.
Section 7. The City, in coordination with the Steering Committee, shall review the
invoices of the lawyers and rate experts for reasonableness before submitting the invoices to
SPS for reimbursement.
Section 8. SPS shall reimburse the City on a monthly basis, through AXM's
coordinating city, the City of Amarillo, Texas, for the reasonable costs of attorneys and
consultants and expenses related thereto, upon the presentation of invoices reviewed by the
City of Amarillo.
Section 9. The City Secretary or other appropriate city official shall provide a copy
of this Resolution to Mr. Alfred R. Herrera, Herrera Law & Associates, PLLC, 4400
Medical Parkway, Austin, Texas 78756, and as a courtesy, provide SPS a copy of this
Resolution by sending a copy of the Resolution to Jeremiah W. Cunningham, Rate Case
Manager, Southwestern Public Service Company, 790 S. Buchanan St. Amarillo, Texas
79101.
Section 10. The meeting at which this Resolution was approved was in all things
conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code,
Chapter 551.
Section 11. To the extent any Resolution previously adopted by the City is
inconsistent with this Resolution, it is hereby superseded.
Section 12. The findings set out in the preamble are in all things hereby approved.
Section 13. This Resolution shall become effective from and after its passage.
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Denial Resolution
PASSED AND APPROVED this 13th day of September 2022,
ATTEST:
Reb ca Garza, City Sec
APPROVED AS TO CONTENT:
D--Bu Ko-st6lich, Chief Financial Officer
APPROVED AS TO FORM:
i�
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orney
eputy
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SPS Surcharge Application
Filed on or About July I, 2022
Denial Resolution