HomeMy WebLinkAboutResolution - 2004-R0207 - Resolution Requiring Deposit For Electrical Service - LP&L - 04_22_2004Resolution No. 2004-RO207
April 22, 2004
Item No. 51
RESOLUTION
WHEREAS, Lubbock Power & Light is the municipally owned electric utility of
the City of Lubbock;
WHEREAS, the City of Lubbock desires to change the rates and tariff structure
for residential, commercial, industrial, and other retail customers of the City's
municipally owned electric utility, Lubbock Power & Light, beginning on May 1, 2004;
WHEREAS, pursuant to Section 40.055 of the TEXAS UTILITY CODE, the City
Council of the City of Lubbock has exclusive jurisdiction to set all terms of access,
conditions, and rates applicable to services provided by Lubbock Power & Light;
WHEREAS, the City Council of the City of Lubbock finds that, as implemented,
certain provisions contained in the rate and tariff structure passed by the City Council in
Resolution No. 2001-RO103 are no longer in the best interest of the citizens of the City of
Lubbock; that the lack of a deposit requirement in said tariff is unjust and unreasonable to
customers of Lubbock Power & Light who pay their electric service charges in full and
on time because the revenue deficiencies resulting from nonpayment of electric service
charges will otherwise require compensatory rate increases to provide a reasonable return
to Lubbock Power & Light, and that customers paying their charges in full and on time
do and would bear the expense of said rate increases;
WHEREAS, the City Council of the City of Lubbock deems it to be in the best
interest of the citizens of the City of Lubbock both to improve the efficiency and
competitiveness of Lubbock Power & Light, and further to ensure the just and reasonable
imposition of certain costs associated with the provision of electric services to the
citizens of the City of Lubbock; NOW THEREFORE:
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
SECTION 1: THAT Section 5 of the General Terms and Conditions of the tariff
and rate structure of Lubbock Power & Light is hereby deleted in its entirety and replaced
with the following:
5. The following fees shall be assessed to customers as applicable:
a. Late Fees. All bills for electric service shall be due and payable
twenty-two (22) days after issuance. A penalty of five percent
(5%) shall be charged to any person, firm, or organization that fails
to pay his bill after twenty-two (22) days from issuance. The five
percent (5%) late payment penalty shall apply to all classes of
customers served. As used in this section, "date of issuance" shall
mean the date in which a bill is issued.
b. Collection Fee. Lubbock Power & Light be authorized and
directed to assess a collection fee in the amount of FIFTEEN AND
N0/100 DOLLARS ($15.00) for each payment for utility services
that is collected from the customer by Lubbock Power & Light
staff at the customer's residence, place of business or at any place
other than those locations designated by Lubbock Power & Light
for the collection and payment of charges for the provision of
utility services.
SECTION 2: THAT Section 6 of the General Terms and Conditions of the tariff
and rate structure of Lubbock Power & Light is hereby deleted in its entirety, and
replaced with the following:
6. Lubbock Power & Light shall require a deposit from customers for electric
service, in accordance with the following terms and conditions:
a. Lubbock Power & Light shall require a deposit from a prospective
residential electric service customer in an amount equal to ONE
HUNDRED THIRTY FIVE AND NO/100 DOLLARS ($135.00),
except as provided herein.
b. Lubbock Power & Light shall require a deposit from a prospective
commercial and/or industrial customer in an amount equal to ONE -
SIXTH (1/6) of the reasonable and good -faith estimate of annual
billings of the consumer, except as provided herein.
C. An applicant for residential electric service shall be exempt from the
deposit requirement if any of the following conditions are met by the
applicant:
i. the applicant produces, to the satisfaction of Lubbock Power &
Light, the following information:
A. Proof that during the two years prior to applying for electric
service from Lubbock Power & Light, the applicant was a
customer of a utility providing electric service for at least
twelve (12) consecutive months; and
B. While a customer, the applicant was not delinquent in
paying for any utility service on more than one occasion;
and
C. While a customer, the applicant never had service
disconnected for nonpayment;
ii. the applicant demonstrates adequate and available credit, to the
satisfaction of Lubbock Power & Light, by producing a letter
of credit from a utility providing electric service of whom the
applicant was a customer; or
iii. the applicant is at least sixty-five (65) years of age and has no
outstanding account balance with a utility for utility service
that accrued within the last two years.
d. An applicant for commercial and/or industrial service shall be
exempt from the deposit requirement if the applicant produces, to
the satisfaction of Lubbock Power & Light, the following
information:
i. Proof that during the two years prior to applying for electric
service from Lubbock Power & Light, the applicant was a
customer of a utility providing electric service for at least
twelve (12) consecutive months; and
ii. While a customer, the applicant was not delinquent in
paying for any utility service on more than one occasion;
and
iii. While a customer, the applicant never had service
disconnected for nonpayment;
e. Lubbock Power & Light shall pay or credit simple interest on any
deposits required and collected under this Section at an annual rate
equal to the Three-month Treasury -Bill Rate (the "Published
Rate") as published in the Wall Street Journal on the first business
day in January of the year in which the deposit is collected, and in
accordance with the following terms:
i. If a deposit is refunded within thirty (30) days of its receipt, no
interest payment or credit shall be required.
ii. If a deposit is retained for thirty (30) days or longer, interest
shall be prorated and paid or credited retroactively to the date
of collection.
iii. Except as provided herein, the customer from whom a deposit
has been collected, if elected by the customer and the customer
notifies Lubbock Power & Light, shall be eligible for a refund
of said deposit when the customer has paid bills for service for
twelve (12) consecutive residential billings or for twenty-four
(24) consecutive commercial or industrial billings without
having service disconnected for nonpayment of charges for
such service, and without having more than two occasions on
which a bill was delinquent, and when the customer is not
delinquent in the payment of the current bill. Refunds to
eligible customers shall be made promptly and automatically in
the form of cash, or check payable to the customer, or at
Lubbock Power & Light's sole discretion, as a credit to the
customer's bill.
f. If a deposit is collected from a consumer by Lubbock Power &
Light pursuant to this Section, Lubbock Power & Light shall
thereafter keep records to show:
i. the name and address of each depositor;
ii. the amount and date of the deposit; and
iii. each transaction concerning the deposit.
g. Lubbock Power & Light shall issue a receipt of deposit to each
applicant from whom a deposit is received, and shall provide
means whereby a depositor eligible for a refund of deposit may
establish a claim for said refund if the receipt shall have been lost
by the depositor.
h. Any deposit not previously refunded to the customer or credited to
the customer's account as provided herein shall be credited to the
customer's final bill for service.
SECTION 3: THAT should any paragraph, sentence, clause, phrase, or word of
this Resolution be declared unconstitutional or invalid for any reason, the remainder of
this Resolution shall not be affected thereby.
SECTION 4: THAT the terms and conditions of this resolution shall be effective
for all residential and commercial/industrial customers who choose Lubbock Power &
Light to provide their electric service on or after May 1, 2004 and on all existing
customers who have been disconnected and become eligible to reconnect with Lubbock
Power & Light on or after May 1, 2004.
SECTION 5: THAT all other provisions, terms and conditions of the General
Terms and Conditions of the tariff and rate structure of Lubbock Power & Light not
herein expressly modified or amended shall remain in full force and effect for all
purposes.
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Passed by the City Council this 22nd day of April , 2004.
MAItC MCDOUGA, MAYOR
ATTEST:
RebeI n��
cca Garza, City Secretary
APPROVED AS TO CONTENT:
Carroll McDonald
Director of Electric Utilities
APPROVED AS TO FORM:
Mathew L. Wade
Assistant City Attorney