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HomeMy WebLinkAboutResolution - 1290 - Order SWPSC, LP&L Deposits & Late Charges Implementation - 12_16_1982RESOLUTION 1290 - 12/16/82 JCR:cl ORDER AND RESOLUTION AN ORDER AND RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LUBBOCK, SITTIN AS A REGULATORY AUTHORITY UNDER VERNON'S ANN.CIV.STAT., ART. 1446c, AS TO SOUTH WESTERN PUBLIC SERVICE COMPANY, A PUBLIC UTILITY, AND AS THE CITY COUNCIL OF TH CITY OF LUBBOCK AS TO LUBBOCK POWER AND LIGHT AND WATER, A MUNICIPALLY OWNED UTILITY, ORDERING AND RESOLVING THAT BOTH UTILITIES IMPLEMENT DEPOSITS AND LATE CHARGES FOR ALL CLASSES OF CUSTOMERS SERVED BY EACH UTILITY AND THAT THE TARIFF OF BOTH UTILITIES BE REVISED IN CONFORMITY WITH THIS ORDER AND RESOLUTION. WHEREAS, the City Council of the City of Lubbock, upon its own motion and in accordance with the terms of §42, Art. 1446c, V.A.C.S., ordered and conductec on December 16, 1982, a public hearing with regard to the reasonableness of late payment penalties and customer deposits charged by Southwestern Public Service Company and to determine whether changes in rates or tariffs may be appropriate; and WHEREAS, the City Council of the City of Lubbock likewise, upon its own motion conducted a public hearing on the date above -mentioned concerning the reasonableness of late payment penalties and customer deposits charged by Lub- bock Power and Light and Water and to determine whether changes in rates or tariffs may be appropriate, and WHEREAS, representatives of both'Southwestern Public Service Company and Lubbock Power and Light and Water were present at such hearing, and WHEREAS, at the hearing information was presented to the City Council concerning rates and tariffs of both Southwestern Public Service Company and Lubbock Power and Light and Water, and WHEREAS, neither company currently has in effect a tariff providing for type of deposit or late payment penalty within the City of Lubbock, and WHEREAS, the lack of a deposit requirement and late payment penalty in the tariffs charged by both utilities for electric service is unreasonable in that it discriminates against those customers who pay their charges promptly and totally and it causes both utilities to seek rate increases to offset the deficiencies in revenues from such practices at more frequent times than would be necessary if deposits and late payment penalties are incorporated into the tariffs of both companies, and WHEREAS, the lack of a deposit requirement and late payment presently is unfair to both utilities in that it erodes what has heretofore been found to be necessary rates to provide a reasonable return to both companies, and WHEREAS, the City Council makes the following finding as to Southwestern Public Service Company: 1. Southwestern Public Service Company is a regulated Public Utility as defined in §3 of Art. 1446c, V.A.C.S. 2. The purpose of the Texas Public Utility Regulatory Act of 1975 (Art. 1446c) is set forth in §1 of said Act as follows: The purpose of this Act is to establish a comprehensive regu- latory system which is adequate to the task of regulating public utilities as defined by the Act, to assure rates, operations, an services which are just and reasonable to consumers and to the utilities. 3. That any changes to existing tariffs of Southwestern Public Service Company hereinafter ordered are changes in rates of said company as that term is set forth in §3(d) of Art. 1446c, V.A.C.S. 4. That §17(a), Art. 1446c, V.A.C.S. grants to the governing body of ea municipality exclusive original jurisdiction over all electric rates provided by an electric utility within its city. 5. That the requirement found in §22, Art. 1446c, V.A.C.S. to regulate Public Utilities in accord with the same standards and rules as the Commission or other standards and rules not inconsistent therewith does not apply to the matter before the City Council since the limi- tation set forth in said section applies only to service and not rat and these terms are defined separately and differently in the Act. 6. That the duty of the City Council, sitting as a regulatory authority, in setting rates is set forth in §38, Art. 1446c, V.A.C.S. as follows "(a) It shall be the duty of the regulatory authority to insure that every rate made, demanded, or received by any public utilit or by any two or more public utilities jointly, shall be just an reasonable. Rates shall not be unreasonably preferential, pre- judicial, or discriminatory, but shall be sufficient, equitable, and consistent in application to each class of consumers. For ratemaking purposes, the commission or railroad commission may treat two or more municipalities served by a public utility as a single class wherever the commission or railroad commission deem such treatment to be appropriate." 7. That §45, Art. 1446c, V.A.C.S., states that no public utility may establish and maintain any unreasonable differences as to rates of service either as between localities or as between classes of service 8. That the current tariff implementing Southwestern Public Service Com- pany's current rate is unreasonable and does not insure rates that ar just between all classes of customers served by said utility. That said tariff is unjust and unreasonable in the following particulars: (a) No late payment penalty is required for any class of customer. (b) No deposit is required for any class of customer. (c) That failure to provide for a late payment penalty and for a deposit discriminates against those customers of said utility pay their charges in full and on time. -2- (d) That failure to provide for a late payment charge and for a deposit produces revenue deficiencies which will require future requests for rate increases to make up for said revenue defi- ciency. (e) That customers who pay their charges in full and on time will be looked to to bare.the expense of future rate increases to make ul the revenue deficiency caused by the lack of an adequate late payment penalty and deposit requirement. (f) That failure to provide for a late payment penalty and deposit is the current tariff leads to an erosion of the existing rates necessitating additional rate increases to provide a reasonable return to Southwestern Public Service Company. (g) That the current tariff has no provision to encourage the prompt, payment of utility bills rendered by Southwestern Public Service' Company. (h) That the current tariff has no provision to protect against the non payment of a bill rendered by Southwestern Public Service a a deposit requirement will assist in this regard. 9. In order to carry out the purpose of the Texas Public Utility Regu- latory Act of 1975 the current tariff of Southwestern Public Service Company should be changed to provide for a late payment penalty and deposit requirement as hereinafter ordered. 10. That it is the duty of the City Council sitting as a regulatory authority to insure that every rate made, demanded or received by any Public Utility . . . shall be just and reasonable. It is the further duty of the City Council sitting as a regulatory authority to see that rates shall not be unreasonably preferential, prejudicial or dis- criminatory, but shall be sufficient, equitable and consistent in application to each class of consumers. (Emphasis Added) 11. That the failure of any new tariff as hereinafter ordered, to apply all classes of customers would be unjust and unreasonable discrimi- nation between classes of customers served and in violation of §45, Art. 1446c, V.A.C.S. and that such tariff would not be consistent in its application to each class of consumers as required by §38 of the aforementioned statute. 12. That the City Council sitting as a regulatory authority, after notice and hearing as required in §42, Art. 1446c, V.A.C,S. on its own motioi does hereby find that the tariff of Southwestern Public Service Com- pany should be amended and changed to provide for a late payment penalty and deposit requirement for all classes of consumers served b, said utility as hereinafter ordered, and WHEREAS, the City Council makes the following finding as to Lubbock Power and Light and Water: -3- 1. That Lubbock Power and Light and Water is not a Public Utility as defined in §3, Art. 1446c, V.A.C.S. 2. That the rates and tariffs of Lubbock Power and Light and Water are set by the City Council of the City of Lubbock. 3. That the current tariff implementing Lubbock Power and Light and Wate current rates does not contain, as to any class of customer served by said utility, any provision for a late payment penalty or a deposit requirement. 4. That the current tariff implementing Lubbock Power and Light and Wate current rates is unreasonable and does not insure rates that are just between all classes of customers served by said utility. That said tariff is unjust and unreasonable in all the particulars as heretofor set forth above for Southwestern Public Service Company. 5. That in order to provide just, fair and reasonable rates for Lubbock Power and Light and Water the current tariff of said utility should b amended and changed to provide for a late payment penalty and deposit requirement for all classes of customers served by said utility as hereinafter resolved; NOW THEREFORE: BE IT ORDERED AND RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK, TEXAS: 1. That Southwestern Public Service Company and Lubbock Power and Light and Water shall charge a five (5%) percent late payment penalty for electric service to all classes of customers, served by each utility. 2. That the late payment penalty of 5% shall be charged on all bills rendered and issued for electric service by Southwestern Public Service Company and Lubbock Power and Light and Water if said bill is paid by the consumer after 15 days from issuance. 3. A bill shall be deemed issued and rendered to the consumer on the da that said bill is deposited in the United States Mail properly ad- dressed to the consumer. 4. That Southwestern Public Service Company and Lubbock Power and Light and Water shall change and amend their tariffs to conform to this Order. 5. That Southwestern Public Service Company and Lubbock Power and Light and Water shall file with.the City Secretary of the City of Lubbock a true and correct copy of the tariffs as amended and changed as re- quired by this Order and Resolution. BE IT FURTHER ORDERED AND RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: 1. That Southwestern Public Service Company and Lubbock Power and Light and Water shall change and amend their tariffs to require a deposit from customers of each utility for electric service as follows: -4- (a) For all commercial and industrial consumers a deposit of one - sixth (1/6) of the estimated annual billings shall be required. (b) For all residential consumers a deposit of Fifty ($50.00) Dollar: shall be required. 2. That the deposit requirements hereinabove required shall apply to co sumers seeking new electric service from Southwestern Public Service Company and Lubbock Power and Light and Water after the effective da of this Order and Resolution. 3. Notwithstanding any requirement set forth in paragraph 1 and paragr 2 above set forth, a residential applicant shall not be required to pay a deposit if any of the following conditions can be met by said applicant for service: (a) If the residential applicant has been a customer of any utility for the same kind of service within the last two years and is not delinquent in payment of any such utility service account and during the last twelve (12) consecutive months of service did not have more than one occasion in which a bill for such utility service was paid after becoming delinquent and never had service disconnected for nonpayment; or (b) If the residential applicant furnishes in writing a satisfactory guarantee to secure payment of bills for the service required; of (c) If the residential applicant demonstrates a satisfactory credit rating by appropriate means, including, but not limited to, the production of generally acceptable credit cards, letters of credit reference, the names of credit references which may be quickly and inexpensively contacted by the utility, or ownership of substantial equity. (d) All applicants for permanent residential service who are sixty- five (65) years of age or older will be considered as having established credit if such applicant does not have an outstandin account balance with the utility or another utility for the same utility service which accrued within the last two years. No cas deposit shall be required of such applicant under these con- ditions. 4. Notwithstanding any requirement set forth in paragraph 1 or paragraph 2 above set forth, a commercial or industrial applicant shall not be required to pay a deposit if such applicant has been a customer of an utility (including a municipal utility) for the same kind of service within the last two years and is not delinquent in payment of any suc utility service account and during the last twelve (12) consecutive months of service did not have more than one occasion in which a bill for such utility service was paid after becoming delinquent and never had service disconnected for nonpayment. 5. In every instance where Southwestern Public Service Company or Lubbo -5- Power and Light and Water have required a deposit in accordance with the terms of this Order and Resolution, they shall pay interest on such deposit required at an annual rate of six (6%) percent. In accordance with the following terms and provisions: (a) If a deposit is refunded within 30 days of its receipt no interest payment shall be required. (b) If .a deposit is retained for 30 days or longer, interest shall be prorated at the annual rate above mentioned and paid retro- active to the date of deposit. (c) When the customer has paid bills for service for twelve (12) consecutive residential billings or for twenty-four (24) con- secutive commercial or industrial billings without having servic� disconnected for nonpayment of charges for such service and without having more than two occasions in which a bill was delinquent and when the customer is not delinquent in the pay- ment of the current bill, the utility shall promptly and auto- matically refund the deposit plus accrued interest to the customer in the form of cash or (at the option of the utility) a; credit to the customers bill. If a customer does not meet the criteria above set forth for a refund of deposit plus accrued interest the utility shall retain said deposit under the same terms as heretofore set forth until such time as the customer can meet the criteria for refund. (d) A deposit shall cease to draw interest on the date it is re- turned or credited to customers account. (e) Each utility shall keep records to show: (1) The name and address of each depositor (2) The amount and date of the deposit (3) Each transaction concerning the deposit (f) Each utility shall issue a receipt of deposit to each applicant from whom a deposit is received, and shall provide means whereby! a depositor may establish a claim for refund (in all cases where; the provisions of subparagraph (c) are met) if the receipt is j lost. (g) Any retained deposit which has not previously been refunded to the customer or credited to the customers account in accordance with the provisions of subparagraph (c) above shall be credited to a customers final bill for service. 6. That Southwestern Public Service Company and Lubbock Power and Light and Water shall file with the City Secretary of the City of Lubbock a true and correct copy of the tariff as amended or changed as re- quired by this order. BE IT FURTHER ORDERED AND RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: That the effective date of this Order and Resolution shall be March 1, 1983, and Southwestern Public Service Company and Lubbock Power and Light and Water shall be in full compliance with this Order and Resolution by the above - mentioned date. That the City Secretary is directed to serve a certified copy of this Order and Resolution upon Southwestern Public Service Company and Lubbock Power and Light and Water. ORDERED AND RESOLVED by the City Council this 16 th day Decemb 982. BILL McALISTER, MAYOR and Presidi Officer of the Regulatory Authori ATTEST: Ev lyn Gaffga, C ty See eta y reasurer APPROVED AS TO CONTENT: Carroll McDonald, Director of Electric Utilities APPROVED AS TO FORM: '94 c �P-'14-f - ,,, ohn C. Ross, Jr., City Attorney -7- THE STATE OF TEXAS COUNTY OF LUBBOCK CITY OF LUBBOCK 1, EVELYN GAFFGA, City Secretary -Treasurer of the City of Lubbock, Texas hereby certify that the attached document is a true and correct copy of the document designated ORDER AND RESOLUTION NO. 1290, being duly recorded in Minute Book No. 41A, Pages 1518-1522, Item 2301 of the Minutes of the City Council dated December 16, 1982. (Sea]) TO CERTIFY WHICH, witness my hand and seal of the City of Lubbock, this loth day of January, 1983. E ELYN GAFFGA,"City Secret ry NO. JA N 1 _ 19831 CITY SFCREipRY ,1`%v PETITION OF APPEAL BY SOUTHWESTERN PUBLIC SERVICE COMPANY OF THE ORDER AND RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LUBBOCK OF DECEMBER 16, 1982 REQUIRING INSTITUTION OF LATE PAYMENT PENALTY AND DEPOSITS BY SOUTHWESTERN PUBLIC SERVICE COMPANY WITHIN THE CITY OF LUBBOCK. TEXAS TO THE HONORABLE PUBLIC UTILITY COMMISSION OF THE STATE OF TEXAS: NOW COMES Southwestern Public Service Company, Petitioner, and brings this appeal for determination by the Public Utility Commission of Texas of the validity of the Order and Resolution of the City Council of the City of Lubbock (sitting as a regulatory authority pursuant to Article 1446c, V.A.C.S.) of December 16, 1982 requiring institution of deposits and late payment penalty by Southwestern Public Service Company to its customers within the City of Lubbock, Texas. 1. This appeal is brought pursuant to §16(d) and 526(a) of Article 1446c, V.A.C.S., the Public Utility Regulatory Act (hereinafter referred to as the Act), and Public Utility Commission of Texas has jurisdiction over the parties and subject matter of this appeal pursuant to §16(d) and §26(a) of Article 1446(c), V.A.C.S. 2. Southwestern Public Service Company is a public utility as defined in §3(c)(1) of the Act and is engaged in producing, generating, transmitting, distributing, selling, and furnishing electricity to commercial, industrial and residential cus- tomers within the City of Lubbock, Texas. 3. On December 16, 1982 the City Council of the City of Lubbock passed an Order and Resolution requiring late pay- ment penalty and deposits by Southwestern Public Service Company to its customers within the City of Lubbock, Texas. A certified copy of such Order and Resolution is attached hereto as Exhibit "A" and made a part hereof for all purposes. 4. During the consideration by the Lubbock City Council of the passage of an Order and Resolution to require de- posits and late payment penalties, Petitioner, Southwestern Public Service Company, through its attorneys, advised the City Manager and City Attorney of the City of Lubbock, in writing, that they were of the opinion that any Order or Resolution or Ordinance directing institution of a late pay- ment penalty and/or deposits would constitute a change in "rates" and that, insofar as Southwestern Public Service Company was concerned, the City Council of the City of. Lubbock had no authority or jurisdiction to. pass any ordi- nance or order which was inconsistent with any of the standards or rules of the Public Utility Commission of the State of Texas by virtue of the provisions of §22 of the Act. Specifically, the City of Lubbock was advised by the -2- attorneys for Southwestern Public Service Company that they were of the opinion that, insofar as Southwestern Public Service Company was concerned, the City had no authority to pass an Ordinance, Order or Resolution which was inconsistent with the Public Utility Commission of Texas' Substantive Rules §052.02.04.044(b) and §052.02.04.045(a)(2), a copy of which Rules are attached hereto as Exhibit "B" and made A part here- of for all purposes. 5. The Order and Resolution attached hereto as Exhibit "A" is clearly inconsistent,at least with §052.02.04.044(b) of the Public Utility Commission of Texas' Substantive Rules in that such section of the Public Utility Commission of Texas' Substantive Rules provides that no penalty shall apply to residential bills under this Rule and the Order and Resolution of the Lubbock City Council provides for a 5% late payment penalty to all classes of customers. Specifically, on page 4 of such Order and Resolution it is provided: "BE IT ORDERED AND RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK, TEXAS: "l. That Southwestern Public Service Company and Lubbock Power and Light and Water shall charge a five (5%) percent late payment penalty for -3- electric service to all classes of customers, served by each utility. "2. That the late payment penalty of 5% shall be charged on all bills rendered and issued for electric service by Southwestern Public Service Company and Lubbock Power and Light and Water if said bill is paid by the con- sumer after 15 days from issuance. "4. That Southwestern Public Service Company and Lubbock Power and Light and Water shall change and amend their tariffs to conform to this Order. "5. That Southwestern Public Service Company and Lubbock Power and Light and Water shall file with the City Secretary of the City of Lubbock a true and correct copy of the tariffs as amended and changed as required by this Order and Resolution." §052.02.04.044(b) of the Public Utility Commission of Texas' Substantive Rules provides: "(b) A one-time penalty not to exceed five percent (5%) may be made on delinquent commercial or industrial -4- bills; however, no such penalty shall apply to residential bills under this rule." Under the Order and Resolution of the City Council of the City of Lubbock, Southwestern Public Service Company is required to charge a five percent (5%) penalty to all classes of customers, including residential customers and such provi- sions of the Order and Resolution, inter alia, are clearly inconsistent with §052.02.04.044(b) of the Public Utility Commission of Texas' Substantive Rules. W In the event the Order and Resolution of the Lubbock City Council requiring late payment penalty charges by the Southwestern Public Service Company to all classes of cus- tomers is in fact invalid and unlawful, Petitioner, South- western Public Service Company, could be subjected to the penalties provided in §72 and §74 of the Act. PRAYER Therefore, Southwestern Public Service Company brings this Petition of Appeal for a determination by the Commission as to the validity and legality of the provisions of the Order and Resolution of the City of Lubbock attached here- to as Exhibit "A" and prays that after hearing this Commission render its final decision, including findings of fact and conclusions of law, as to the validity and legality of the -5- Order and Resolution of the City of Lubbock referred to above. The effective date of such Order and Resolution is March 1, 1983 and Petitioner further prays that the hearing of this matter be expedited so that the final decision of the Commission can be rendered prior to March 1, 1983, the effective date of such Order and Resolution. Respectfully submitted, SOUTHWESTERN PUBLIC SERVICE HINKLE, COX, EATON, COFFIELD & COMPANY HENSLEY 6th and Tyler Streets P. 0. Box 12118 Amarillo,Potter County, Texas Amarillo, Potter County, Texas 79170 79101 (806)378-2121 (806)372-5569 CRENSHAW, DUPREE & MILAM P. 0. Box 1499 Lubbock, Lubbock County, Texas 79408 (806)762-5281 By ... Cec'il Kuhne -Texas Bar 0 11760(YOA By U. �oe V. Boerner, U . Texas Bar # 02551000 ATTORNEYS FOR PETITIONER, SOUTHWESTERN PUBLIC SERVICE COMPANY CERTIFICATE OF SERVICE The City of Lubbock has been served by delivering a true and correct copy of the foregoing Petition of Appeal to the City Secretary of the City of Lubbock, Evelyn Gaffga, and by delivering a true and correct copy of the above and foregoing Petition of Appeal on Mr. John Ross, City Attorney of the City of Lubbock on this the 14th day of January, 1983. By se A true and correct copy of the above and foregoing Petition of Appeal has been delivered the General Counsel of the Public Utility Commission of Texas, Suit 400N, 7800 Shoal Creek Boulevard, Austin, Texas 7875 , on his the 14th day of January, 1983. By Robert E.-Duncan Texas Bar # 06218950 OF COUNSEL -7- THE STATE OF TEXAS COUNTY OF LUBBOCK CITY OF LUBBOCK I, EVELYN GAFFGA, City Secretary -Treasurer of the City of Lubbock, Texas hereby certify that the attached document is a true and correct copy of the document designated ORDER AND RESOLUTION NO. 1290, being duly recorded in Minute Book No. 41A, Pages 1518-1522, Item 2301 of the Minutes of the City Council dated December 16, 1982. TO CERTIFY WHICH, witness my hand and seal of the City of Lubbock, this loth day of January, 1983. ' __✓ (Seal) ��— E ELYN GAFFGA, "C i ty Sec're�try EXHIBIT "A" - �,! #_: - /,. - Al L F //,, ' f "' 5.,•.,. x: r,+:.•-.4 .. v-. ,i �, � .. 6 DOCKET NO. 4962 APPEAL OF SOUTHWESTERN PUBLIC PUBLIC UTILITY COMMISSION SERVICE COMPANY FROM ORDINANCE OF THE CITY OF LUBBOCK REQUIRING OF INSTITUTION OF LATE PAYMENT PENALTY AND DEPOSITS TEXAS NOTICE OF PREHEARING CONFERENCE On January 14, 1983, Southwestern Public Service Company (SWPS) filed an appeal from an Ordinance of the City of Lubbock requiring institution of late payment penalty and despoits. The Commission has jurisdiction over this case pursuant to Tex. Rev. Civ. Stat. Ann. art. 1446c, 9916 and 26(a) (1980). Pursuant to P.U.C. PROC. R. 052.01.00.024(a) a prehearing conference will be held in this docket at the Commission offices, 7800 Shoal Creek Boulevard, Austin, Texas, on the 14th day of February, 1983, at 1:30 p.m. The scope of the conference shall include consideration of motions to intervene, alignment of'� parties, determination of a discovery and hearing schedule, and other procedural matters within the scope of P.U.C. PROC. R. 052.01.00.052. Requests for a court reporter's presence at the prehearing conference shall be presented to the examiner on or before the 9th day of February, 1983. ENTERED AT AUSTIN, TEXAS on this the zi K day of �u,1a�.0 1983. DOCKET NO. 4962 APPEAL OF SOUTHWESTERN PUBLIC PUBLIC UTILITY COMMISSION• SERVICE COMPANY FROM ORDINANCE Q OF THE CITY OF LUBBOCK REQUIRING OF INSTITUTION OF LATE PAYMENT PENALTY AND DEPOSITS Q TEXAS NOTICE OF PREHEARING CONFERENCE On January 14, 1983, Southwestern Public Service Company (SWPS) filed an appeal from an Ordinance of the City of Lubbock requiring institution of late payment penalty and despoits. The Commission has jurisdiction over this case pursuant to Tex. Rev. Civ. Stat. Ann. art. 1446c, SSS16 and 26(a) (1980). Pursuant to P.U.C. PROC. R. 052.01.00.024(a) a prehearing conference will be held in this docket dam,-e,. i4�,tQn..oftices,,eMO Shoal Creek Boulevard Austin Tex o�the 14t dayr�f, Febr�ua ,yr 1983 tom_- 0-p.M,,,.The scope of the conference shall include consideration of motions to intervene, alignment of parties, determination of a discovery and hearing schedule, and other procedural matters within the scope of P.U.C. PROC. R. 052.01.00.052. -Requests for a court reporter's presence at the prehearing conference shall be presented to the examiner on or before the 9th day of February, 1983. ENTERED AT AUSTIN, TEXAS on this the 21 K day of 1983. DOCKET NO. 4962 APPEAL OF SOUTHWESTERN SERVICE J COMPANY FROM ORDINANCE OF THE CITY OF LUBBOCK REQUIRING INSTITUTIONS OF LATE PAYMENT PENALTY AND DEPOSITS PUBLIC UTILITY COMISSION OF TEXAS D v INTERIM ORDER AND BRIEFING DATES On February 14, 1983 a prehearing conference was held Southwestern Public Service Company (SPS), the City of Lubbock represented by their respective counsel. �£821 1983 C�fy t'rn„_ �,4#y i this proceeding. and Staff appeared, At the prehearing conference the staff counsel for the General Counsel's office, Elizabeth Drews, stipulated on the record that the General Counsel will not proceed against SPS for noncompliance with P.U.C. SUBST. R. 052.02.04.044 during the pendency of this proceeding. It is hereby ordered that if during the pendency of these proceedings SPS collects delayed payment penalties from its customers according to the Ordinance passed by the City of Lubbock, SPS shall make provision for refund of such penalties to the customers from whom the penalties were collected, in the event the Commission rules that such penalties should not have been collected. SPS shall keep accurate records during the pendency of this proceeding of forwarding addresses for customers leaving the system so that refund of delayed payment penalties collected from these customers may also be refunded. In this regard, SPS is hereby put on notice that a detailed accounting of penalties collected and refunded to each customer will be required in the Pvant V CS-F. , 4+ _.-- - Southwestern PUBLIC SERVICE Company IdAR 2 21983 CITY SECRETARY RESIDENTIAL SERVICE TARIFF NUMBER 1008.11 CANCELLING 1008.10 APPLICABLE: To residential customers for electric service used for domestic purposes in private residences and separately metered individual apartments when all service is supplied at one point of delivery, and measured through one kilowatt hour meter, where facilities of adequate capacity and suitable voltage are adjacent to the premises to be served. Single phase motors not to exceed 10 horsepower, individual capacity, may be served under this rate. TERRITORY: Lubbock, Texas. RATE: Service Availability Charge: $5.10 per month, which includes 30 kwh per month; All kwh used per month in excess of 30 kwh @ 2.62G per kwh. ELECTRIC LIVING SERVICES (1) Water Heating - When customer has in regular use a permanently installed 240 volt, 30 gallons or greater, storage type water heater of not greater than 5.5 kilowatts, individual rated capacity, the first 500 kwh will be billed at the regular rate, the next 500 kwh at 1.15C per kwh, and all additional kwh at the regular rate. (2) All -Electric Space Heating - When customer has in regular use permanently installed space heating equipment of an aggregate rated capacity of 5 kilowatts or more, excluding bathroom heaters, billing during the winter months will be the first 500 kwh at the regular rate, and all additional kwh at 1.15G per kwh. When customer has water heating in combination with all -electric space heating, the first 500 kwh will be billed at the regular rate, and all additional kwh at 1.154. per kwh. For heat pump installations, the rated capacity shall be determined by adding the rated capacity of the heat pump (1 ton per kilowatt) and ;i of the rated capacity of any auxiliary heating elements used in conjunction with the heat pump. The rated capacity of space heating equipment may be measured by the Company. Continued Approved (Continued) WINTER MONTHS: The billing months of November to May, inclusive. FUEL COST ADJUSTMENT: The charge per kilowatt hour of the above rate shall be adjusted by,a'fuel cost factor per kilowatt hour calculated in accordance with Tariff' No. 1900, Fuel Cost Recovery. TERMS OF PAYMENT: Net in 15 days after mailing date; 5% added to bill after 15 CONDITIONS AND REGULATIONS: Water heating equipment served on this rate shall be of insulated storage type bearing the approval of the Underwriter's Laboratories, Inc., and shall have a demand of not greater than 5.5 kilo- watts, individual capacity. Space heating equipment and the installation of the equipment shall be subject to the approval of the supplying utility. A customer must have permanently installed and in regular use space heating equipment having a total connected load of not less than 5 kilowatts, excluding bathroom heaters. CHARACTER OF SERVICE: The voltage and characteristics of equipment applied shall meet requirements of the supplying utility. MINIMUM: $5.10 per month. Southwestern PUBLIC SERVICE Company ELECTRIC HEATING SERVICE TARIFF NUMBER 1503:8 CANCELLING 1503.7 APPLICABLE: To residential and commercial customers for water heating and/or space heating service, including resistance heating, radiant heating and heat pumps, when all heating service is supplied at one point of delivery and measured through one kilowatt hour meter, which meter must be separate from the meter which measures the energy for lighting and general use. TERRITORY: Lubbock, Texas WATER HEATING RATE: All kwh used per month @ 1.15e, per kwh SPACE HEATING RATE: Winter Months: All kwh used per month @ 1.15C per kwh Summer Months: All kwh used per month shall be combined and billed under the applicable residential or.commercial rate, except that the first 500 kwh used per month through the heating meter will be billed @ 1.15c per kwh when cus- tomer has an electric water heater installed and in use. FUEL COST ADJUSTMENT: The charge per kilowatt hour of the above rate shall be adjusted by a fuel cost factor per kilowatt hour calculated in accordance with Tariff No. 1900, Fuel Cost Recovery. TERMS OF PAYMENT: Net in 15 days after mailing date; 5% added to bill after 15 days. WINTER MONTHS: The billing months of November to April, inclusive. SUMMER MONTHS: The billing months of May to October, inclusive. CONDITIONS AND REGULATIONS: Water heating equipment served on this rate shall be of insulated storage type bearing the approval of the Underwriter's Lab- oratories, Inc., and shall have a demand of not greater than 5.5 kilowatts, individual capacity. Space heating equipment and the installation of the equipment shall be subject to the approval of the supplying utility. To be eligible for the 1.15 cent space heating rate, a customer must have permanent- ly installed and in regular use space heating equipment having a total con- nected load of not less than 5 kilowatts. (Continued) App►ov*d CHARACTER OF SERVICE: The voltage and characteristics of equipment applied shall meet requirements of the supplying utility. Southwestern PUBLIC SERVICE Company FUEL COST RECOVERY TARIFF NUMBER 1900 CANCELLING APPLICABLE: To all retail customers served in Lubbock. TERRITORY: Lubbock, Texas. COMPUTATION FORMULA: The fuel cost factor shall be computed according to the following formula: -C Fuel Cost Factor ($/KWH) = Fm Sm Fm - Fuel Cost Estimated for Current Month in Dollars. F = Total Cost of fossil fuel consumed in Lubbock Power & Light's (LP&L's) generating plants plus the actual identifiable fossil fuel cost associated with firm energy purchased by LP&L plus the net energy cost of energy purchased by LP&L on an economic dis- patch basis or emergency or scheduled outage. Sm = KWH sales of Lubbock Power & Light estimated for current month. Where for any reason billing system cannot be coordinated with fuel cost for the billing period, sales may be equated to the sum of (1) net generation, plus (2) purchased, less (3) total system losses. C Correction factor which shall be calculated as follows C = e - a e Actual fuel cost billed by LP&L in the second preceding month in dollars. a = Actual cost incurred by LP&L in the second preceding month in dollars. The fuel cost factor may be further modified to allow recovery of gross receipts and other similar revenue based tax charges occasioned by the fuel factor revenues. The fuel cost factor shall apply to all billings during the calendar month of the "Fm" estimate. d Approved Southwestern PUBLIC SERVICE Company TARIFF NUMBER 2006.11 CANCELLING 2006.10 APPLICABLE: To power service for a well used for irrigation of crop and/or pasture land. Service to be furnished under contract. Not applicable to wells used for domestic house service. TERRITORY: Lubbock, Texas CHARACTER OF SERVICE: Service shall be 240 volt single phase or 240 volt three phase unless otherwise specified. RATE: Winter Months - All kwh per month at 1.8q, per kwh. Winter months in- clude from regular meter readings made in October to meter readings made in May. Summer Months - All kwh per month at 3.18C per kwh. Summer months in- clude from regular meter readings made in May to regular meter readings made in October. FUEL COST ADJUSTMENT: The charge per kilowatt hour of the above rate shall be adjusted by a fuel cost factor per kilowatt hour calculated in accordance with Tariff No. 1900, Fuel Cost Recovery. TERMS OF PAYMENT: Net in 15 days after mailing date; 5% added to bill after 15 days. CONDITIONS: Service will be supplied through a circuit to which no equip- ment except the irrigation well motor will be connected. MINIMUM: $24.00 per connected H.P. (name plate rating) per year beginning in January. Approved Southwestern PUBLIC SERVICE Company COMMERCIAL LIGHTING SERVICE TARIFF NUMBER 3008.11 CANCELLING 3008.10 - APPLICABLE: To all commercial places of business, including stores, shops, factories, warehouses, hotels, lodges, churches, apartment houses on one meter, garages and filling stations. TERRITORY: Lubbock, Texas RATE: All energy used shall be billed in accordance with the following rate: Service Availability Charge $10.00 per month First 1,000 kwh used per month @ 3.70,,, per kwh Next 4,000 kwh used per month @ 2.91C per kwh Next 15,000 kwh used per month @ 2.010 per kwh Additional kwh used per month @ 1.21c per kwh DISCOUNT: Where primary metering is used, 10% will be deducted on the above base rate portion of all bills except minimum monthly bills, provided that primary metered load is greater than secondary metered load. The Fuel Cost Adjustment portion of a bill is not subject to the 10% discount. FUEL COST ADJUSTMENT: The charge per kilowatt hour of the above rate shall be adjusted by a fuel cost factor per kilowatt hour calculated in accordance with Tariff No. 1900, Fuel Cost Recovery. TERMS OF PAYMENT: Net in 15 days after mailing date; 5% added to bill after 15 days. CHARACTER OF SERVICE: If metered on secondary side of distribution trans- formers, lighting service may be either 120/240 volt, 3 wire single phase, or 120 volt, 2 wire single phase. If polyphase service is required, it shall be 3 phase, 240 volts unless otherwise specified. Where primary metering is used, service supplied will be the primary voltage serving the area, single or polyphase, as the case may require. MINIMUM: $10.00 per month. Approved Southwestern PUBLIC SERVICE Company GUARD LIGHT SERVICE TARIFF NUMBER 5104.3 CANCELLING 5104.2 APPLICABLE: Under contract to all night outdoor lighting service where facil- ities of adequate capacity and suitable voltage are adjacent to the premises to be served. TERRITORY: Inside corporate limits of Lubbock, Texas RATE: (1) Each 7,000 lumen mercury vapor, wood pole, overhead bracket type light for $4.00 per month, plus FCA for applicable month based on 68 KWH usage. (2) Each 12,000 lumen high pressure sodium, wood pole, overhead bracket type light for $6.00 per month, plus FCA for applicable month based on 60 KWH usage. One span of secondary line not exceeding 150 feet in length may be furnished under the above rate. Service requiring more than one span of secondary line per light will be furnished by the Company, provided the customer pays a rental charge of $1.00 per month for each additional span not exceeding 150 feet in length. FUEL COST ADJUSTMENT: A 7,000 lumen mercury vapor lamp uses 68 kwh per month, and a 12,000 lumen high pressure sodium lamp uses 60 kwh per month. The charge per kilowatt hour of the above rate shall be adjusted by a fuel cost factor per kilowatt hour calculated in accordance with Tariff No. 1900, Fuel Cost Recovery. TERMS OF PAYMENT: Net in 15 days after mailing date; 5% added to bill after 15 days. CONDITIONS OF SERVICE: The Company will construct, operate and maintain on the customer's premises, the required number of lights, mounted on a metal bracket, photo -electrically controlled, installed on Company's service pole, a separate 30 foot pole, or installed on any suitable mounting device belonging to the customer, and having secondary line span not exceeding 150 feet in length. Lights will not be installed on any mounting device which in the opinion of the Company is unsafe or not suitable for this purpose. (Continued) Approved (Continued) CHARACTER OF SERVICE: A-C; 60 cycles; single phase; 120 volts. NO ADDITIONAL CUSTOMERS ARE TO BE SERVED UNDER THIS TARIFF. Southwestern PUBLIC SERVICE Company TARIFF NUMBER CANCELLING Southwestern PUBLIC SERVICE Company SERVICE AGREEMENT SUMMARY TARIFF NUMBER CANCELLING AGREEMENT WITH: Texas Tech University Lubbock, Texas POINT OF SERVICE: Lubbock, Texas RATE: All energy used shall be billed in accordance with the following rate: Service Availability Charge; $10.00 per month. First 1,000 kwh used per month at 3.70q% per kwh Next 4,000 kwh used per month at 2.91t,% per kwh Next 15,000 kwh used per month at 2.01c, per kwh Additional kwh used per month at 1.21� per kwh Kwh consumption shall be determined by adding the consumption as recorded by each separate meter. DISCOUNT: Where primary metering is used, 10% will be deducted on the above base rate portion of all bills except minimum monthly bills, provided that primary metered load is greater than secondary metered load. The Fuel Cost Adjustment portion of a bill is not subject to the 10% discount. FUEL COST ADJUSTMENT: The charge per kilowatt hour of the above rate shall be adjusted by a fuel cost factor per kilowatt hour calculated in accordance with Tariff No. 1900, Fuel Cost Recovery. TERMS OF PAYMENT: Net in 15 days after mailing date; 5% added to bill after 15 days. CHARACTER OF SERVICE: If metered on secondary side of distribution trans— formers, lighting service may be either 120/240 volt, 3 wire single phase or 120 volt, 2 wire single phase. If polyphase service is required, it shall be 3 phase, 240 volts, unless otherwise specified. Where primary metering is used, service supplied will be the primary voltage serving the area, single or polyphase, as the case may require. MINIMUM: $10.00 per month. ISSUED: March 1, 1983. CANCELING: 356 issued August 1, 1980. Approved Southwestern PUBLIC SERVICE Company SERVICE DEPOSIT RULE APPLICABLE: To all Residential, Commercial and Industrial customers for electric. service. TERRITORY: Lubbock, Texas CUSTOMER DEPOSITS: 1. Each Commercial & Industrial customer upon application for service, shall provide the Company with a deposit of one -sixth (1/6) of the customers estimated annual billing, except, a commercial or industrial applicant shall not be required to pay a deposit if such applicant has been a customer of any utility (including a municipal utility) for the same kind of service within the last two years and is not delinquent in payment of any such utility service account and during the last twelve (12) consecutive months of service did not have more than one occasion in which a bill for such utility service was paid after becoming delin- quent and never had service disconnected for nonpayment. 2. Each residential customer, upon application for service, shall provide the Company with a deposit of fifty ($50.00) dollars, except a residen- tial applicant shall not be required to pay a deposit if any of the following conditions can be met by said applicant for service. - (a) If the resident applicant has been a customer of any utility for the same kind of service within the last two years and is not delinquent in payment of any such utility service account and during the last twelve (12) consecutive months of service did not have more than one occasion in which a bill for such utility service was paid after becoming delinquent and never had service disconnected for nonpayment; or (b) If the residential applicant furnishes i� writing a satisfactory guarantee to secure payment of bills for the service required; or (c) If the residential applicant demonstrates a satisfactory credit rating by appropriate means, including, but not limited to, the production of generally acceptable credit cards, letters of credit reference, the names of credit references which may be quickly and inexpensively contacted by the utility, or ownership of substantial equity. (d) All applicants for permanent residential service who are sixty-five (65) years of age or older will be considered as having established credit if such applicant does not have an outstanding account balance with the Company, or another utility for the same utility service which accrued within the last two years. No cash deposit shall be required of such applicant under these conditions. Approved OTHER TERMS AND CONDITIONS: The Company shall pay interest on such deposit required on an annual rate of six (6%) percent in accordance with the following terms and conditions (a) If a deposit is refunded within 30 days of its receipt no interest payment shall be required. (b) If a deposit is retained for 30 days or longer, interest shall be prorated at the annual rate above mentioned and paid retroactive to the date of deposit. (c) When the customer has paid bills for service for twelve (12) consecutive residential billings or for twenty-four (24) consecu- tive commercial or industrial billings without having service disconnected for nonpayment :of charges for such service and without having more than two occasions in which a bill was delin- quent and when the customer is not delinquent in the payment of the current bill, the Company shall promptly and automatically refund the deposit plus accrued interest to the customer in the form of cash or (at the option of the Company) a credit to the customers bill. If a customer does not meet the criteria above set forth for a refund of deposit plus accrued interest the Company shall retain said deposit under the same terms as hereto- fore set forth until such time as the customer can meet the criteria for refund. (d) A deposit shall cease to draw interest on the date it is returned or credited tocustomersaccount. (e) The Company shall keep records to show: (1) The name and address of each depositor (2) The amount and date of the deposit (3) Each transaction concerning the deposit (f) The Company shall issue a receipt of deposit to each applicant from whom a deposit is received, and shall provide means whereby a depositor may establish a claim for refund (in all cases where the provisions of subparagraph (c) are met) if the receipt is lost. (g) Any retained deposit which has not previously been refunded to the customer or credited to the customers account in accordance with the provisions of subparagraph (c) above shall be credited to a customers final bill for service.