HomeMy WebLinkAboutResolution - 997 - Notice Of Intent - SWPSC - LP&L Rate Changes - 12/17/19810PI'
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ORDER AND RESOLUTION
RESOLUTION 997 - 12/17/81
AN ORDER OF THE CITY COUNCIL OF THE CITY OF LUBBOCK SITTING AS A REGULATORY
AUTHORITY UNDER VERNON'S ANNOTATED CIVIL STATUTE, ARTICLE 1446c, AS TO A
STATEMENT OF INTENT TO CHANGE CERTAIN RATES FILED BY SOUTHWESTERN PUBLIC
SERVICE COMPANY; A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LUBBOCK AS TO
A CHANGE IN RATES TO BE CHARGED BY LUBBOCK POWER & LIGHT & WATER.
WHEREAS, Southwestern Public Service Company filed its Statement of
Intent to change the formula for the monthly fuel cost adjustment factor with
the City of Lubbock on the 27th day of October, 1981; and
WHEREAS, Lubbock Power & Light & Water has also requested a change in its
formula for the monthly fuel cost adjustment factor; and
WHEREAS, documentation supporting such rate schedules as required by law
has been presented to the Regulatory Authority by both utilities; and
WHEREAS, upon such documentation and recommendations of staff, no evidence
has been presented to the Regulatory Authority or the City Council for the
City of Lubbock that would indicate that such proposed change to the formula
for the monthly fuel cost adjustment factor would be unreasonable under V.A.C.S,
Article 1446c; and
WHEREAS, upon consideration of all matters and testimony properly before
it, the Regulatory Authority and the City Council for the City of Lubbock
after public hearing finds that such proposed change is not unreasonable; NOW
THEREFORE:
BE IT ORDERED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK SITTING AS A REGULA-
TORY AUTHORITY AND BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT Southwestern Public Service Company and Lubbock Power & Light &
Water shall be entitled to place into effect pursuant to their Request and
Statement of Intent the proposed change to the formula for the monthly fuel
cost adjustment factor, attached hereto as Exhibit A.
THAT all previous fuel adjustment formulas previously established by the
City Council for the City of Lubbock, as the Regulatory Authority or other-
wise, are hereby abolished.
THAT the new fuel adjustment formula, hereby established and attached as
Exhibit A, is effective on and from December 2, 1981.
Adopted by the City Council of the City of Lubbock this 17th day of
December, 1981. :�:?
lzv
BI L McALIST R, MAYOR AND PRESIDING OFFICER
OF THE REGULATORY AUTHORITY
ATTEST: -
f
I
IEvelyn Gaf ga, City ecr ry-Treasurer
APPROVED AS TO FORM:
-Aan"Jk , 1�t '227�
David W. Reagan, 1s City Attorney
EXHIBIT A
LUBBOCK POWER a LIGHT
ELECTRIC TARIFF F-1
FUEL COST RECOVERY
The fuel cost factor shall be computed according to the following formula:
Fuel Cost Factor ($/KWH) = Fm - C
Sm
Fm = Fuel Cost Estimated for Current Month in Dollars.
F = Total Cost of fossil fuel consumed in utilities own plants plus the actual
identifiable fossil fuel cost associated with firm energy purchased plus
the ,net energy cost of energy purchased on an economic dispatch basis
or emergency or scheduled outage.
Sm = KWH sales 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 in the second preceding month in dollars.
a = Actual cost 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.
Issued by ( Q4A.4'� %,/'f c
P.O. Box 2000, Lubbock, Texas 79457
Address of Officer
Director of Electric Utilities
Title
NOTICE
On Tuesday, October 27,1981, Lubbock Power and Light and
Southwestern Public Service Company filed with the City
Secretary, City of Lubbock their Statement of Intent to
change the formula for the monthly fuel cost adjustment
factor. Effective date of the change will be December 2,
1981, and will effect all electric consumers in Lubbock,
Texas.
The concept of the formula will change from cost per million
BTU of heat to cost of fuel per killowatt hour.
A public hearing will be held in the City Council Chambers,
City Hall on December'.17, 1981 at 10:30 a.m..
7LUBBOCK
POWER & LIGHT
Mayor and City Council
City of Lubbock
Lubbock, Texas 79457
OCT 2
CITE' SECRETARY
October 27,1981
This letter will serve as the official Statement of Intent for Lubbock Power
and Light to request a change in the formula for recovery of fuel costs in
the monthly fuel cost adjustment. This change became necessary because
of a loss of revenue directly attributable to the fuel cost pass-through, and
because there is presently no provision: for consideration of purchased power
in the formula. The concept of the formula will change from cost per million
BTU of heat to cost of fuel per killowatt hour. A copy of the formula and
definitions is attached.
All electric consumers in Lubbock will be effected by this change, however,
the change will not necessarily cause an increase in the cost,to the consumer
because of utilization of the interconnect with Southwestern Public Service
Company. Because of the interconnect, it is difficult to predict the exact
effect on revenues, but we can predict more accurate recovery of actual costs.
Several criteria were considered in developing the proposed formula.
1. Federal Energy Regulation Subpart C, Section 35.14 entitled "Fuel
Cost Adjustment Clauses".
2. Texas Public Utility Commission Guidelines.
3. Recommendations in the "Comprehensive Electric Rate Study" as
presented to.the Electric Utility Board, September 29,1981.
4. Faciltate addition of fuel cost and factors of both purchased power
and self gen,�erated power.
5• Eliminate two month lag in fuel cost factor.
6. Collect only as.much as required to offset actual fuel costs.
If you have any questions concerning the above, please contact me at your
convenience.
lam%
CARROLL MCDONALD
CM/pm
916 Texas Avenue • P.O. Box 2000 • Lubbock, Texas 79457 • Area Code 806-763-9381
FUEL COST RECOVERY
The fuel cost factor shall be computed according to the following formula:
Fuel Cost Factor ($/KWH) = Fm - C
Sm
Fm= Fuel Cost Estimated for Current Month
F = Total cost of fossil fuel consumed in utilities own plants plus the
actual identifiable fossil fuel :cost associated with firm energy purchased
plus the net energy- cost of energy purchased on`an-.economlc.dispatch basis
or emergency or scheduled outage.
Sm= KWH sales estimated for current month`. Where.for any.reason billing
system saIes,cannot - be coordinated. with fuel cost -for the billing period,
sales may be -equated to the sum -of (l)'net generation, plus (2) purchased,
less (3) total system losses..
C = Correction factor which shall be calculated as follows:
C = e - a
e = Estimated fuel cost calculated in -the second -preceding month.
a = .Actual fuel..cost in the second preceding month.
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.
OCT 2
CITY SURI.TARY '�'�
a
P,O. BOX 631 LUBBOCK, TEXAS 79408
October 27, 1981
Mayor Bill McAllister
and Members oftheCity Council
City of Lubbock
914 Texas Avenue
Lubbock, Texas 79401
Dear Mayor McAllister & Members of the City Council:
Southwestern Public Service Company requests that we be
allowed to use the same fuel cost formula recommended by
the Electric Utility Board and filed with the City Secre-
tary by Lubbock Power & Light on October 27, 1981.
Application of this formula results in Southwestern Public
Service Company applying the same fuel cost adjustment
factor each month as Lubbock Power & Light.
Cordially yours,
Jake Webb, Manager
Lubbock District
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