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HomeMy WebLinkAboutResolution - 997 - Notice Of Intent - SWPSC - LP&L Rate Changes - 12/17/19810PI' DWR: j s 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 JW/bb nes_ it t� OCT 2 `' CITY micany COED wwNs NEW MEi GO Owlw !F Ewti