ORD 1986-01 - Reject GSU Rate IncreaseORDINANCE NO. 86- 1
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF HUNTSVILLE,
TEXAS, REJECTING THE REQUEST OF GULF STATES UTILITIES COMPANY TO
INCREASE RATES FOR ELECTRICAL SERVICE IN HUNTSVILLE; AND MAKING
OTHER PROVISIONS AND FINDINGS RELATED THERETO.
FINDINGS
On October 1, 1985, Gulf State Utility Company filed with this City
Council an application for a major rate increase. Simultaneously, GSU filed
the same request with all other Texas cities retaining rate making authority
within its service area, as well as with the Public Utility Commission of
Texas. On October 22, 1985, the City of Huntsville suspended the major
increase in rates proposed by GSU until further hearing or deliberation.
Subsequent to that time, the City of Huntsville, Texas, intervened in the rural
rate case of GSU pending before the Texas Public Utilities Commission, and
substantial discovery has been made by Texas cities and others affected by the
major rate increase proposed by GSU in that proceeding. Moreover, GSU has
appealed every action of every Texas city not approving their request for a
major rate increase to the Texas Public Utilities Commission. The Texas Public
Utilities Commission has complete appellate jurisdiction over the rates for GSU
service within the City. GSU and the Texas P.U.C. intend to exercise that
jurisdiction to maintain uniform rates within GSU's service area. Any local
hearing or substantial effort to accomplish meaningful rate regulation at a
local level is thwarted by the policies and practices of GSU and the Texas
Public Utilities Commission.
NOW, THEREFORE,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF HUNTSVILLE, TEXAS:
Section 1: That the request of GSU for a major rate increase is hereby
rejected.
Section 2: This ordinance shall take effect immediately.
PASSED AND APPROVED this day of
APPROVED AS TO FORM:
leke‘
Scott Bounds, City Attorney
1986.
THE C Y OF HUNTSVILLE, TEXAS
By
ane Monday, Mayor