R278
RESOLUTION NO. 278
A RESOLUTION OF THE CITY COUNCIL OF KENNEDALE,
TEXAS ("CITY") AUTHORIZING PARTICIPATION WITH
THE ALLIANCE OF TXU/ONCOR CITIES ("ATOC");
AUTHORIZING EMPLOYMENT OF LEGAL COUNSEL AND
COMPENSATION FOR THE SAME; FINDING THAT THE
MEETING COMPLIES WITH THE OPEN MEETINGS ACT;
AND DECLARING AN EFFECTIVE DATE
WHEREAS, in November 2008, Public Utility Commission of Texas Staff ("Staffl') filed notice
of Project 36358--Consideration of Alternative Ratemaking Methodologies; and
WHEREAS, Project 36358 was initiated by American Electric Power Company ("AEP") in an
attempt to eliminate the traditional rate review process and cost of service regulation applicable
to monopoly utilities; and
WHEREAS, other utilities, like Oncor Electric Delivery Company ("Oncor"), are expected to
join with AEP in order to make it much easier to put rate increases into effect; and
WHEREAS, if successful, Project 36358 marks the beginning of the elimination of cost of
service regulation of monopoly electric utilities; and
WHEREAS, the Public Utility Commission of Texas ("PUC") has set January 6, 2009, as the
deadline date for submitting briefs on the legality of "streamlined" regulation proposals; and
WHEREAS, responding to the questions of legality regarding Project 36358 requires the
expertise of lawyers and experts who specialize in matters of utility regulation; and
WHEREAS, the City of Kennedale is an active member of a coalition of cities known as the
Alliance of TXU/Oncor Cities ("ATOC"). Participation in ATOC will benefit electric customers
within our municipality by ensuring a meaningful review of electric utilities' expenses and
revenues, thereby helping to keep rates reasonable; and
WHEREAS, it is necessary to assess the member cities of ATOC in order to insure its effective
participation at the PUC in responding to the effort by monopoly utilities to emasculate the
existing rate review safeguards.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF KENNEDALE, TEXAS THAT:
Section 1. The fmdings set out in the preamble to this resolution are in all things approved
and adopted.
Section 2. The City of Kennedale, Texas. is authorized to participate in PUC Project No.
36358 with other member cities of ATOC.
Section 3. The ATOC steering committee will provide direction and guidance to legal and
consulting experts with regard to Project 36358 and subsequent related
proceedings.
Section 4. The City authorizes the law firm of Herrera & Boyle, PLLC to act on behalf of
the City and ATOC in connection with Project No. 36358.
Section 5. Legal counsel for ATOC is authorized to take such actions in connection with
Project 36358 as are in the best interest of the ratepayers of ATOC located within
the city's municipal boundaries, consistent with the instructions of the steering
committee, including administrative or judicial proceedings related to Project
36358.
Section 6. The City of Kennedale commits to compensate the law furn of Herrera & Boyle,
PLLC, according to a predetermined pro rata share of expenses based upon
population as set forth in Attachment A.
Section 7. The meeting at which this resolution was adopted was approved and was, in all
things, conducted in strict compliance with the Texas Open Meetings Act, Texas
Government Code, Chapter 551.
Section 8. This resolution shall become effective from and after its passage.
PASSED AND APPROVED this 12`x' day of February, 20^09. 11 / ~/~ /
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.r•`O~ KENN~p9., (,~~ Lam.
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U t ~ •; ~ Bryan Lankhorst, Mayor
Kathy
APPROVED AS TO FORM:
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Wayne Olson, City Attorney