O75-07ORDINANCE NUMBER 75`"'7
AN ORDINANCE APPROVING CERTAIN RATE SCHEDULES FILED BY TEXAS
ELECTRIC SERVICE COMPANY IN THE CITY OF KENNEDALE
TEXAS, AND PROVIDING CONDITIONS UNDER WHICH SUCH RATE SCHEDULES
MAY BE CHANGED, MODIFIED, AMENDED OR WITHDRAWN:
BE IT ORDAINED BY THE CITY COUNCIL OF THE
CITY OF KENNEDALE , TEXAS:
SECTION 1: That Texas Electric Service Company, having filed on the
day of je, •/emie,, , 1975, a set of Rate Schedules with the City
Secretary, the s4me are hereby approved as Schedules of Rates under which
said Company is authorized to collect charges from its customers for the
sale of electric service within the corporate limits of the City
until such time as said Rate Schedules may be changed, modified, amended
or withdrawn with the approval of the City Council
SECTION 2: The filing of the Rate Schedules and the approval of same
by the City Council , in the manner herein provided, shall constitute
notice to the consumers of electricity within the City of the
availability and application of such Rate Schedules to all electric service
provided by Company beginning with the first meter reading made on and
after December 1, 1975, and applied to all bills calculated and rendered
from meter readings made on and after January 1, 1976. Said Rate Schedules
are hereby attached and made a part hereof for all purposes.
SECTION 3: If corresponding Rate Schedules lower than Rate Schedules
approved herein are approved by the City of Fort Worth and/or if the same
or substitute Rate Schedules are made effective later than the effective
dates approved herein, then such Rate Schedules and effective date as
approved by the City of Fort Worth are automatically substituted for said
Rate Schedules and effective date approved herein.
SECTION 4: This Ordinance shall be in full force and effect immediately
upon its passage and approval.
PASSED AND APPROVED at a regular meeting of the City Council
of the City of Kennedale , Texas, this the // day of
Se_f4-coAloc r , 1975.
ATTEST:
CITY
SEAL)
September 11, 1975
The Honorable Mayor and
Members of the City Council
Kennedale, Texas
Kennedale residents today have electric rates among the lowest in
the nation, and we at Texas Electric Service Company want to keep it that way.
But to continue to give our customers reliable service at the lowest possible price
in the long run, we must build new plants using cheaper fuels than natural gas.
To be able to raise the money to build these plants, we must have adequate rev-
enues, and that is why we must ask your approval of new electric service rates
that will increase our revenues by 9%.
The exact size of the increase for any individual depends on the amount
and pattern of use. A typical residential customer whose electric bill for the
year averages $20 a month will have an annual increase of 7.4 o. The percent
increase generally will be less for users of low amounts of electricity and more
for those using large amounts .
In January., 1974, the time of our last rate increase request, we noted
that fuel shortages were ending the days of cheap energy and were causing changes
in what we must do to provide a reliable supply of electric power for our customers.
We described our long-range plans to change from the fuels we use now -- natural
gas and fuel oil -- to less expensive lignite coal and nuclear fuel.
As you are well aware, the price of gas and oil has skyrocketed and
we can no longer be sure these fuels will be available to serve our customers'
needs. So with two other companies we are building power plants to use the
supplies of lignite and nuclear fuel we have already acquired.
These new
the cost of producing
as they are, will still
at today's high prices
plants cost much more to build than gas and oil plants so
electricity is going up . But these new plants, expensive
produce electricity more cheaply than plants using gas
Our plan to change to these new fuels is on schedule. Three lignite -
burning units are now in operation and seven more are under construction.
We are also on schedule with the nuclear plant being built near Glen Rose.
P. O. BOX 887 0 ARLINGTON, TEXAS 76010 •0 TELEPHONE (817) 275-2771
The lignite plants now in operation have helped us to keep electric
bills low -- far below the national average and lower than most cities in Texas.
But because these new plants are expensive, we must borrow large sums of
money. Our construction program requires nearly $500 million for the three
years 1975 through 1977, more than the combined total for the previous six years.
Most of this money must be obtained in the highly competitive money market,
where interest rates are high and funds are expected to be scarce.
So far, we have been able to borrow money at the lowest possible
interest rates because we have had a high credit rating. To continue raising
the money needed to build these new plants, we must have sufficient revenues
to maintain investor confidence.
Texas Electric is in a good position today to cope with the energy sit-
uation because our financial position has been sound. Only with rate increases
when needed can we maintain the strength that has enabled us to provide good
service while keeping rates low,
Today, a.$20 residential electric bill in Kennedale would be $30 in
Corpus Christi, $28 in San Antonio, and $32 in Austin. In Chicago it would be
$27, and in New York it would come to more than $56. With the increase we are
requesting, the bill here would still be less than $22. Thus our record for keeping
rates low is a good one. But we can maintain our good record only if we maintain
the investor confidence necessary to obtain the money we need. The increase
we are requesting is the very minimum required to do that.
We respectfully ask for your approval of the revised rates to be effec-
tive December 1, 1975 and applied to all bills calculated from meter readings
on or after January 1, 1976,
(vv)1
J . H. Foreman, Manager
Texas Electric Service Company
Ace.t