ML20030B576
| ML20030B576 | |
| Person / Time | |
|---|---|
| Site: | Allens Creek File:Houston Lighting and Power Company icon.png |
| Issue date: | 09/12/1981 |
| From: | Barger C, Bell J, Day J, Sandra Walker AFFILIATION NOT ASSIGNED, ASSOCIATION OF COMMUNITY ORGANIZATIONS FOR REFORM, COMMUNITY PUBLIC SERVICE CO., DOW CHEMICAL CO., HOUSTON LIGHTING & POWER CO., HOUSTON RETAIL MERCHANTS ASSOCIATION, HOUSTON, TX, TEXAS INDUSTRIAL ENERGY CONSUMERS, TEXAS, STATE OF |
| To: | |
| Shared Package | |
| ML20030B571 | List: |
| References | |
| NUDOCS 8108180304 | |
| Download: ML20030B576 (12) | |
Text
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BEFORE THE PUBLIC UTILITY COMJi!S510N OF TEXAS APPLICATION OF HOUSTON LIGHTING
& PCW'ER COMPANT FOR A RATE DOCKET NO. 3320 lhCREASE STIPULATION WHEREAS, on June 30, 1980, Houston Lighting & Power Company (HL&P or the Company) filed with the Public Utility Comission of Texas (the Cornission) a request for an increase in rates to be charged within those parts of the Company's service area which are subject to the Corcission's original rate jurisdiction, said proposed increase to be in the amount of approxiT.ately $214.4 million per annum on a systemwide basis, an increase cf approximately 10% in the adjusted total operating revenues for the test year ending March 31, 1980; and WHEREAS, on or about June 30, 1930, HL&P filed an application for a rate increase, identical in sount to that filed with the Cocnission in this proceeding, with each of the municipalities in Texas that exercises original rate jurisdiction over'the Company's' rates; and WHEREAS, various Intervenors in this proceeding, HL&P, and the staff of the Coenission have met together and identified areas of agreement sufficient in nu.ber to permit this matter to be resolved upon the stipulated basis which is set forth herein; and NHEREAS, such resolution would allow the Intervenors and the Company to avoid considerable rate case expense; and WHEREAS, such resolution would allow the Company to put the agreed upon rate increase into effe'ct on Or.tober 1,1980; and WHEREAS, as set forth on Exhibit A aad its attached Schedule I attached hereto, the Company and various Intervenors have agreed upon the rate design they believe should be adopted as in the public interest in this proceeding; and WHEREAS, the Company and various Intervenors have agreed that a rate increase of $134,347,000 in base rate revenues should be authorized as in the public interest; and 8108190304 81081 goaAnocaos
. g WHEREAS, the Company and the Intervenors wish the Ccenissien to ac:pt the agreed upon rate increase and rate design to become effective on October 1,1980.
NOW, THEREFORE, HL&P and various Intervenors, through their undersigned representatives agree and stipulate as follows:
1.
That HL&P and the other participants joining in the agreement, may introduce their prefiled evidence, if any, into the record in Docket No. 3320 without objection or the necessity of providing their witnesses -
for cross-examination. This agreement may be filed in lieu of. testimony.
2.
. The stipulated total electric operating revenue requirement is
$2.280,331,000.
The stipulated adjusted value invested capital which is comprised of 63.75% original cost less depre:iation and 35.25% current cost
- less an adjustment for present age and condition is $3,576.373,000 and the adjusted value rate of return is 9.55%.
The stipulated total invested capital is $3,017,261,000 and the rate of return is 11.32%.
Die inclusion of $589,487,000 of construction work in progress and cf $87,956,000 of nu: lear fuel in progress in both the invested capital and in the adjusted value of invested capital of HL&P is necessary to the finan:ial inteprity of the Company, and any excluded amounts of CWIP will be subject to the a:crual of AFUCC.
The depreciation rates by functional class are Gas /011 Prod;: tion - 3.2S7%, Coal Produ: tion - 3.0%, Other Produ: tion - 5.0%,
Transmission Plant - 2.949%, Distribut >n Plant - 4.057%, and General l
Plant of 5.117% which produce a system composite of 3.607%.
A return of $3,41,554,000, which includes a 15.8% return on commin equity, is a reasonable return on HL&P's invested capital and is no more than a fair return upon the adjusted value of the invested capital used and useful by HL&P in rendering service to the public.
The fixed charge limitation adopted in Docket 2676 of $2.602 per ten of coal purchased from UFI which HL&P could recover from its ratepayers e
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is to be maintained and the inventory carrying charge 1
as set forth in the Public Utility Comission staff's testimony be Mopted I
3.
That the attached Exhibit A and Schedule I cf Exhibit A atta thereto and the Proposed Findings of Fact and Conclusions of Law (Exhibit 8) are accurate and reflect the basis and support fo r the agreed settlement and it is requested that they be adopted by the Comission 4.
The revised rates shall be charged for service provided on and after October 1, 1980.
5.
That the rate increase granted te HL&P represents an agreed upon dollar settlement in the public interest of all issues and that b into this Stipulation neither HL&P, the Comission staff, nor any y entering Intervenor, shall be deemed to have approved, accepted, agreed, or consented to Lny ratemaking principle,
.s 6
That Intervenor, City of Houston, shall, propose a substantive j
rule relating to proper allocation of municipal franchise fees cost collected and paid by electric utilities within thirty days after entry of 1
a Final Order in this proceeding.
The Cornission shall, pursuant to Rule i
052.01.00.043(3) of the Procedural Rules, set a hetring on the p roposed rule within a reasonable time after the date of such request.
It is agreed that the method of. treating such cost allocation of municipal 9 anchise fees approved by the Conission in ;uch proceeding will be im l p emerted prospectively by HL&P in its tariffs as soon as reasonably possit h after final ad ption of such rule.
7.
That upon issutnce of a final order and after the running of any time for the granting of a motion for rehearing, and after the c onclusion of any rehearing in Docket NO. 3199, Aeolication of Central Power and Licht Cc cany for Approval of a Tariff Amendment, HL&P will:
(a) Either file a p'etition with the Comission asking that its tariff provisions limiting liability for interruptions of service be amended to incorporate such changes as may be necessary and appropriate to reflect the decision of the Comission in the Central Power and Light case; or (b)
To file such pleadings and material as are Comissionnecessary and appropriate to bring before the any provisions in HL&P's tariff which seek to limit the Company liability for interruptions of service and to support such provisions as HL&P wishes to Continue or 1mplement.
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hothing in this a;*eeme7t is etait to be, or is'to be construed so as to result in, any waiver by HLLP of any of its legal rights to petition the Comission for appropriate tariff provisions at any time or of ary of its legal sights to rely upon its tariff provisions at any time. It is agreed that in light of the above.., consideration of liability limitation provisions'in this proceeding is not appropricte and is not requested.
8.
This tipulation ray be executed 'in any nurc.ter of counterparts, each of which shall be considered an original, and all of which together 3
shall be considered one and the same instrument.
9.
The execution of this stipulation by any mufcipality does not constitute action on the company's rate request in such municipality's capacity as a regulatory authority.
WHEREFORE, FREMISES CONSIDERED, the parties request that this Stipulation be approved.
EXECUTED this day of September, 19FJ.
MUSTON LIGETIN3 & POWER COMPANY CITY OF HOUSTON SWT4T "To C471 coa e return on ts invested capital as found above.
7.
The fixed charge limitation adopted in Docket 2676 of $2 60 2 per ton of coal purchased from UFI which HL&P can recover from its rat should be maintaihed.
epayers
'8.
The inventory carrying charge on coal purchased from UFI in the Public Utility Com41ssica staff's testimony sho ld b as set forth 9.
The depreciation rates by functional class are gas /cil u
e ad0pted.
i 3.287%,
production coal production 3.0%, other production 5.0%, transmission i
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plant 2.9t9%, distribution plant 4.067%, and general plant of S.Il71,which produce a system composite of 3.607%.
10.
The rate structures proposed by HL&P in its rate filing package
, as modified in Exhibit A of the Stipulation, are just and reasonable
,and not unreasonably preferential, prejudicial, or discriminatory 11 The stipulated rate structures, as proposed by HL&P and modified in Exhibit A of the Stipulation are based upon the adjusted value of property used by and useful to HL&P in providing service.
12.
HL&P, the Cocrnission staff, and Intervenors, reached a Stipulated Settlement of all the material issues in this case, and while the 4
parties believe that the facts in the case provide sufficient legal support for the settlement, the participants have agreed that no participant to this croceeding shall be deemed to have approved accepted, agreed or consented to any ratemaking or rate design principle underlying or suppoted to underlie ',he amounts of the settlement.
13 Requisite notice was given and all requests for intervenor stat us herein were granted.
14 On July 20, 1980, at a duly noticed prehearing conference it was agreed by all of the parties present that a prehearing conference
, for the purpose of scheduling general discussion among the parties
'cencerning issues to be addressed during the hearing on the merits and to afford the opportunity for the parties to reach a stipulation a
of some or all of these issues herein, would be advisable.Thereafter, notice of such a prehearing conference scheduled for September 11 1980, at 9:00 a.m.
at
'1e Commission offices of the Public Utility Commission was issued by the assigned hearings examiner on August 6 1930, and mailed to all of the parties in this proceeding The following parties attended all or part of said prehearing conference which was held on September 11 and 12,1930:
HLLD, TexPloG, Houston Retail Merchants Association, Dow U.c.nical Company. Houston ACOM and Consumers Union, City of Houston Community Public Service Company ind the Texas Industrial Energy Consumers.
The other parties, although duly notified, failed to appear.
15.
All parties to this cause have been afford d full hearing % rein.
the opportaity for a e
16.
HLLP and those partie's whose signature cause have negotiated and reached a Stipulateds are contained material settlement of all issues in this case, unless otherwise n t Comission at the beginning of the duly noti o ed before the 15,1980, at 9:00 a.m ced hearing on the merits, neld on September
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this Stipulation may or may not wish to Those parties not signirg the merits by this Couission beginning Sparticipate in any hearing on L
17.
eptember 15, 1980.
The franchise fee is to be handled in the s Docket 2576 on an interim basis pending th ame manner as provided in I
hearing as, set forth in the agreement e outcome of a special rules open and be a part of such rule hearing as to the fThis Docket 3
-s ranchise fee issue.
Precosed Conclusions of Law 1.
The Comission has jurisdict.on over this pursuant to Sections 17(e) and 43 of the P blirate change application Act, TEX.REV.CIV. STAT. ANN. article 144Sc (S c Utility Regulatory u
2.
uppl. 1978),
HL&P has the burden of proof to establish it its present rates and to establish thes revenue deficiency under i
be collected under its proposed rates pursuant tamount of revenue re
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Public Utility Regulatory Act.
o Section 40(b) of the
'HL&P is entitled to total reven 3.
ues of $2,280,381,000.
4 The rates prescribed herein will allow HL&P t expenses together with a r%sonable return on ito recover its operating r
pursu3nt to provisions of Section 39 of the P bil s invested capital, Act.
u e Utility Regulatory 5.
The rates prescribed herein will yield no mo A^
the adjusted value of the invested capit l re than a fair return upon a
rendering service to the public, as provided bused and useful by HLLP in Public Utility Regulatory Act.
y Section 40(a) of the 6.
The rate structures as proposed by HL&P and the Stipulat ion modified in Exhibit A of are just and reasonable and not
' preferential, prejudicial, or discriminato unreasonably 38 of the Pubite Utility Regulator;y Act ry, as provided by Section h
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7 The rates preposed by HiLP and St *pulation are based upon the modified in Exhibit A in providing service, as pro idadjusted value of property s--
the useful Public Utility Regulatory A ed in Section 41(a) of v
and ct, the 4
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