A reasonable balance between original cost less depreciation,
and replacement, or trended cost, less an adjustment for both age
and condition; provided, that the adjustment for both present age
and condition shall reflect the same concepts with respect to the
using up of property or the consumption of capital that is considered
in the annual depreciation expense allowance. There must be a consistent
relationship between the adjustment, both for age and condition (i.e.,
the depreciation existing on the property) and the depreciation accumulated
through expense charges.
For all utilities, the division of plant, revenues, expenses,
taxes and reserves between cities or between cities and unincorporated
areas, where such items are used for providing utility service for
more than one city or for a city and unincorporated areas. Examples
of items subject to allocations include general office buildings,
general administrative expenses, and income taxes.
As used in the definition of “adjusted value”
above, that balance which shall give not less than 60% or more than
75% weighting to original cost less depreciation; provided, however,
that for good cause shown (including, but not limited to, conditions
such as: (1) binding legal standards imposed by statute or court decisions;
(2) inflation or deflation in current economic conditions; (3) quality
for service being provided; (4) growth rate of service area; (5) technological
changes; or (6) need for utility to attract new capital), the city
council may deviate from such weighting, or balance in specific cases;
and in such cases, the record of the hearing conducted thereon shall
be required to reflect the basis, or cause shown, for such deviation.
For communication utilities only, the division of plant,
revenues, expenses, taxes and reserves, and the amounts thereof, applicable
to exchange or local service where such items are used in common for
providing utility service to both local exchange service and other
service, such as interstate or intrastate toll service.
The adjusted value of all property of the public utility
used and useful in providing the service in question.
(1995 Code, sec. 20-61)
In arriving at the fair value of property used and useful in
providing the service in question, the following methods and criteria
shall be duly considered by the city council and shall be fairly reported
by the utility in question as a part of its rate change applications:
(1)
Property, or capital, received by the utility as contributions in
aid of construction shall not be considered a part of the rate base.
(2)
No additions to rate base shall be allowed for deferred liabilities
representing, in effect, interest-free or cost-free capital, including
but not limited to deferred income taxes and investment tax credit
except to the extent the city determines to be reasonable.
(3)
The rate base may include a reasonable amount for materials and supplies,
unless sufficient funds for such purposes have been provided by ratepayers
through advance payment for services, tax accruals, or other means;
provided, however, that the amount so included shall not exceed 1/8
of the utility’s cash operating and maintenance expenses for
the test period.
(4)
The rate base may include a reasonable amount for working capital,
unless sufficient funds for such purposes have been provided by ratepayers
through advance payment for services, tax accruals, or other means;
provided, however, that the amount so included shall not exceed 1/8
of the utility’s cash operating and maintenance expenses for
the test period.
(5)
When the rate base reported includes an allowance for working capital,
then the report must also show the amount of such capital already
available. Such available capital shall include funds collected from
ratepayers but not expended promptly and held for some period of time,
during which time held such funds shall be considered available capital.
Such funds shall also include advance payments; customer deposits;
investment credits; accrued federal, state and local tax funds not
yet due or payable; and other such funds available to the utility
without interest or capital cost.
(6)
In the adjustment of replacement or trended cost for both present
age and condition, such adjustment for both present age and condition
shall be compared to that ratio determined by dividing the depreciation
reserve by the original cost of the property, and if this adjustment
for age and condition is not reasonably consistent or equal to that
reserve ratio, then the city may adjust the depreciation expense or
the adjustment for age and condition to obtain consistency. If the
depreciation reserve appears to understate the depreciation in the
property, or if the utility does not know its local depreciation reserve,
then the city may calculate a reasonable theoretical depreciation
reserve base upon current depreciation rates multiplied by the vintage
age of the property by accounts.
(7)
The utility company shall file supporting data showing how it determined
the replacement cost new of its properties. If trending factors were
used to develop this cost, then copies of these indexes and property
accounts and amounts by years shall be furnished the city. If unit
prices are utilized then this company is to furnish number of units
by accounts and the unit prices used on each.
(8)
In all cases, it is the intention of this article, and of these standards
and methods, to arrive at a fair, just, and equitable valuation of
all properties and elements comprising the statutory rate base, so
that the city council may, in consideration of local or special circumstances,
require or permit, by specific action, treatment of the items covered
by this section (as from time to time amended) in such other manner
as it considers appropriate in meeting such standards. The city council
may also include other items or exclude the items above named or any
other items from the rate base for good cause shown. The utility in
question shall at all times have reasonable opportunity and notice
of deviations proposed to be made to specific standards on methods
contained in this article.
(1995 Code, sec. 20-62)
All reasonable and necessary expenses of operating the public
utility shall be allowed in the determination of net operating revenue.
Expenses included in annual reports or other reports to cities shall
be actual expenses recorded on the utility’s books of account.
When filing for a rate increase, the utility shall show actual revenue
and expenses recorded on its books and all adjustments necessary to
properly present net operating revenue for the period under review.
Depreciation expense shall be based upon original cost and not upon
other measures of value of assets. The city may require an annual
reporting from each utility company of all its expenditures for business
gifts and entertainment, and institutional, consumption-inducing and
other advertising or public relations expenses. The regulatory authority
shall not allow as costs or expenses for ratemaking purposes any of
these expenditures which the regulatory authority determines not to
be in the public interest. The cost of legislative-advocacy expenses
shall not in any case be allowed as costs or expenses for ratemaking
purposes. Reasonable charitable or civic contributions may be allowed
not to exceed the amount approved by the regulatory authority.
(1995 Code, sec. 20-63)
If the public utility is a member of an affiliated group that
is eligible to file a consolidated income tax return, and if it is
advantageous to the public utility to do so, income taxes shall be
computed as though a consolidated return had been so filed and the
utility had realized its fair share of the savings resulting from
the consolidated return unless it is shown to the satisfaction of
the regulatory authority that it was reasonable to choose not to consolidate
returns. The amounts of income taxes saved by a consolidated group
of which a public utility is a member by reason of the elimination
in the consolidated return of the intercompany profit on purchases
by the public utility from an affiliate shall be applied to reduce
the cost of the property or services so purchased. The investment
tax credit allowed against federal income taxes, to the extent retained
by the utility, shall be applied as a reduction in the rate base contribution
of the assets to which such credit applies, to the extent and at such
rate as allowed by the Internal Revenue Code.
(1995 Code, sec. 20-64)
In determining the allocation of tax savings derived from application
of such methods as liberalized depreciation and amortization and the
investment tax credit, the regulatory authority shall equitably balance
the interests of present and future customers and shall apportion
such benefits between consumers and the public utilities accordingly.
Where any portion of the investment tax credit has been retained by
a public utility, that same amount shall be deducted from the original
cost of the facilities or other addition to the rate base to which
the credit applied, to the extent allowed by the Internal Revenue
Code.
(1995 Code, sec. 20-65)
(a)
Separations procedures for telephone companies shall be made on the
basis of “full Ozark” methods (including intrastate separations
based upon “full Ozark” method). Separation shall be made
on the basis of the city’s usage and properties, and not on
statewide or area usage.
(b)
The telephone company shall furnish a property and expense listing
showing amounts assigned to local service on direct assignment and
amounts assigned by the subscriber plant factor (SPF).
(1995 Code, sec. 20-66)
All regular or special reports required by this article shall
include a report of all services provided at a discounted or reduced
rate to employees, clergy, or others, such reports to list the amounts
charged for such services and the normal charge therefor. For ratemaking,
the reduction in revenue caused by these discounts shall be added
to the other revenues to determine rate of return.
(1995 Code, sec. 20-67)
Costs of facilities, revenues, expenses, taxes, and reserves
shall be separated or allocated as prescribed by the city.
(1995 Code, sec. 20-68)
Every public utility shall keep separate accounts to show all
profits or losses resulting from the sale or lease of appliances,
fixtures, equipment, or other merchandise. No such profit or loss
shall be taken into consideration by the city in arriving at any rate
to be charged for service by any such public utility, to the extent
that such merchandise is not integral to the provision of utility
service.
(1995 Code, sec. 20-69)
(a)
The utility shall be entitled to a fair return upon the fair value
rate base. The rate of return shall be based on the utility’s
actual cost of debt capital, a reasonable cost of equity capital,
and shall be sufficient to attract capital at reasonable cost in the
marketplace and to maintain the financial integrity of the utility.
(b)
The following test shall be made to determine if the selected rate
of return is sufficient to attract capital. This rate of return is
to be calculated as follows:
(1)
Step 1.
Determine capitalization ratios of the company
in percent of debt, preferred stock (if any), deferred items, and
common equity (including retained earnings).
(2)
Step 2.
Apply the capitalization ratios to net plant
amount to determine the dollar amounts assigned to various capital
items. Example: If net plant is $1,000,000.00 and utility capitalization
is composed of 50% debt, 5% preferred stock, 5% deferred items (deferred
income tax and investment credits), and 40% common equity (including
retained earnings), then amount assigned to various capital items
is thus:
|
Debt
|
50%
|
$ 500,000.00
|
|
Preferred
|
5%
|
50,000.00
|
|
Deferred
|
5%
|
50,000.00
|
|
Common
|
40%
|
400,000.00
|
|
Total
|
$1,000,000.00
| |
(3)
Step 3.
Apply embedded cost of debt and preferred stock
to dollar amounts determined for various categories of capitalization
in step 2 above to determine embedded cost of debt. Use zero percent
interest as the embedded cost of capital on deferred items. Example:
If average interest cost on debt is 6% and average cost of preferred
stock is 8%, then embedded cost of capital except common equity is
as follows:
|
|
Amount
|
Embedded Cost
|
Annual Debt Cost
|
|---|---|---|---|
|
Debt
|
$500,000.00
|
6%
|
$30,000.00
|
|
Preferred
|
50,000.00
|
8%
|
4,000.00
|
|
Deferred
|
50,000.00
|
0%
|
0.00
|
|
Total embedded cost of other capital
|
$34,000.00
| ||
(4)
Step 4.
Compute dollar amount available to common equity
after deducting embedded cost of other capital above.
Example: If 7% rate of return on fair value is claimed needed
on fair value of $1,200,000.00, then:
|
Earning = 7% of $1,200,000.00 =
|
$84,000.00
|
|
Less capital cost above
|
34,000.00
|
|
Income available to common utility
|
$50,000.00
|
(5)
Step 5.
Compute rate of return on common equity. Following
example above, then this rate of return becomes:
|
$50,000.00/$400,000.00 = 12.5%
|
This rate of return on common equity (example 12.5%)
need not be more than what other companies of like risk are earning
and shall not be more than necessary to attract adequate capital.
(1995 Code, sec. 20-70)
The city may require that information furnished by the utility
to the city be supplied under oath by an appropriate official of the
utility as to the correctness, authenticity and as to adherence to
accepted practices or to recognized standards. In regard to a request
by a utility for a change in rates, a city may require that such material
filed in connection therewith that relates to the utility’s
set of books be certified by a certified public accountant, for adherence
to standard and current separations practices recognized by the city.
(1995 Code, sec. 20-71)
(a)
Each utility subject to municipal regulation and providing service
within the city shall file annually with the city secretary a complete
balance sheet and operating statement. Such balance sheet and operating
statement shall cover the local service area of the utility and shall
be appropriate for the city’s use in reviewing local operations
and in setting service rates. Such material shall include a statement
of the total number of customers by classes (for a telephone company,
the number of telephones by classes) served within the city and within
the service territory covered by the operating statement and shall
cover the calendar year, unless some other fiscal period shall be
approved by the city, and shall be filed within 120 days after the
close of the period.
(b)
In addition, if and when requested by the city, the utility shall
file:
(1)
A cost of service report and operating statement for the city of
such other service area appropriate for establishing local rates;
(2)
Copies of all statistical and operating reports regularly filed with
other regulatory agencies such as Federal Energy Regulatory Commission,
Federal Communications Commission or the state railroad commission;
(3)
A copy of all annual and interim reports prepared for release to
stockholders; and
(4)
Such other reports or special information reasonably required for
supervision of the company by the city and for the regulation of local
rates and service.
(c)
For the purpose of providing accurate information respecting local
rate base, cost of service, rate of return, etc., each utility shall
maintain and make available to the city, upon request, property records
showing original cost and depreciation reserves on all properties
used and useful in furnishing service with the city’s service
area. Such records shall show all surviving properties by year of
acquisition.
(1995 Code, sec. 20-72)
(a)
The city may associate and contract together with other cities, or
associations of cities, or other governmental bodies or associations
thereof, for the purpose of promoting, studying, or adopting standard
financial reporting forms, uniform standards of service, conditions
of service, deposit requirements, etc. The city may require utilities
to use or follow such standards developed in the association of cities
or may require utilities to use or follow such other standards or
requirements as may be reasonably appropriate.
(b)
Notwithstanding the foregoing, and unless preempted by contrary provisions
of law established by statute or court decision, the city shall be
the sole authority in the regulation of local rates of all public
utilities operating within the corporate limits of the city. All such
regulation shall be promulgated by the city council, acting as governing
body of the city, in accordance with the rules, regulations and procedures
herein contained, and as modified by valid statutes, court decisions,
or decisions of other duly authorized regulatory agencies.
(c)
The city may provide procedures for tariff filings or revisions to
rates for services other than basic services, which may be at variance
to the procedures prescribed for general rate matters.
(1995 Code, sec. 20-73)
All records of every nature of any public utility operating
within and subject to regulation by the city shall be open for inspection
to any designated representative of the city desiring to examine same
for ratemaking purposes, or any other legal purpose. Copies of requested
records shall be promptly provided to any such representative without
cost to the city.
(1995 Code, sec. 20-74)
The city may promulgate reasonable standards for service and
requirements for extension of facilities. Failure to substantially
comply with such standards, considering the revenues and expenses
of such utility, may authorize a lower rate of return being granted
to such utility. Any ordinance establishing or promulgating changes
in rates may provide for increases subject to the meeting of such
standards or making certain extensions of facilities.
(1995 Code, sec. 20-75)
(a)
Changes in basic rates for local service of any utility operating
within the city may be made with or without application for such changes
having been requested by the utility concerned. When changes are proposed
by the utility, it shall comply with all reporting and procedural
requirements herein provided, and when changes are proposed by the
city council without request from the utility, then after reasonable
notice to the utility concerned, and except as may be specifically
provided to the contrary, said utility shall comply with all such
reporting and procedural requirements.
(b)
In connection with the consideration of a change in basic rates,
a utility shall furnish to the city such information as is reasonably
required for the city to evaluate and determine the rate base, operating
income and expenses, and a fair rate of returns, and the burden of
proof shall be with the utility. In addition, the utility may file,
and shall file if requested by the city, schedules of present and
proposed rates, analyses of customer bills or such other information
as may be necessary for the verification of revenue effect of proposed
rates, schedules of rates and other jurisdictions, and such other
information as the city may reasonably request for a full and fair
consideration of a change in rates or service. If appropriate for
a fair determination of local rates, the city may consider the service
beyond its city limits and may require information thereof from the
utility.
(c)
No utility may make changes in its rates except by filing a statement
of intent with the city council at least thirty-five (35) days prior
to the effective date of the proposed change. The statement of intent
shall include proposed revisions of tariffs and schedules and a statement
specifying in detail each proposed change, the effect the proposed
change is expected to have on the revenues of the company, the classes
and numbers of utility consumers affected, and such other information
as may be required by the city. The statement of intent shall be filed
in nine (9) copies and the supporting data in not less than three
(3) copies. Failure to file any supporting data shall not preclude
the use of such data as evidence at hearings conducted in the consideration
of such requests, but the early filing of supporting data is encouraged.
(d)
Notice of the filing of such statement of intent shall be given by
publication in conspicuous form and place of a notice to the public
of such statement of intent, once in each week for four successive
weeks in a newspaper having general circulation in the city.
(e)
The city council may for good cause shown, except in the case of
major changes, allow changes in rate to take effect prior to the end
of such 35-day period under such conditions as it may prescribe, subject
to suspension as provided herein. All such changes shall be indicated
immediately upon its schedules by the utility. “Major changes”
shall mean an increase in rates which would increase the aggregate
revenues of the applicant more than the greater of $100,000.00 dollars
or 2-1/2 %, but shall not include changes in rates allowed to go into
effect by the city council or made by the utility pursuant to an order
of the city council after hearings held upon notice to the public.
(f)
Whenever there is filed with the city council any schedule modifying
or resulting in a change in any rates then in force, the city council
shall on complaints by any affected person or may on its own motion,
at any time within ten (10) days from the date when such change would
or has become effective, and, if it so orders, without answer or other
formal pleading by the utility, but on reasonable notice, enter on
a hearing to determine the propriety of such change. The city council
shall hold such hearing in every case in which the change constitutes
a major change in rates, provided that an informal proceeding may
satisfy this requirement if no complaint has been received before
the expiration of forty-five (45) days after notice of the change
shall have been filed.
(g)
Pending the hearing and decision, the city council, after delivery
to the affected utility of a statement in writing of its reasons therefor,
may suspend the operation of the schedule for a period not to exceed
120 days beyond the date on which the schedule of rates would otherwise
go into effect. If the city council finds that a longer time will
be required for a final determination, the city council may further
extend the period for an additional thirty (30) days. If the city
council does not make a final determination concerning any schedule
of rates within a period of 150 days after the time when the schedule
of rates would otherwise go into effect, the schedule shall be deemed
to have been approved by the city council. This approval is subject
to the authority of the city council thereafter to continue a hearing
in progress. The city council may in its discretion fix temporary
rates for any period of extension under this section. During the suspension
by city council as above provided, the rates in force when the suspended
schedule was filed shall continue in force unless the city council
shall establish a temporary rate. The city council shall give preference
to the hearing and decision of questions arising under this section
over all other questions pending before it and decide the same as
speedily as possible. If the city council fails to make its final
determination of rates within ninety (90) days from the date that
the proposed change otherwise would have gone into effect, the utility
concerned may put a changed rate, not to exceed the proposed rate,
into effect upon the filing with the city council of a bond payable
to the city council in an amount approved by the city council conditioned
upon refund and in a form approved by the city council. The utility
concerned shall refund or credit against future bills all sums collected
during the period of suspension in excess of the rates finally ordered
plus interest at the current rate as finally determined by the city
council.
(h)
If, after hearing, the city council finds the rates to be unreasonable,
or in any way a violation of any provision of law, the city council
shall determine the level of rates to be created or applied by the
utility for the service in question and shall fix the same by order
to be served upon the utility. These rates are thereafter to be observed
until changed, as provided by this article.
(i)
Whenever the regulatory authority, after reasonable notice and hearing,
on its own motion or on complaint of any affected person, finds that
the existing rates of any public utility for any service are unreasonable
or in any way in violation of any provision of law, the city council
shall determine the just and reasonable rates, including maximum or
minimum rates, to be thereafter observed and in force, and shall fix
same by order to be served upon electric utility; such rates shall
constitute the legal rates of the utility until changed as provided
herein.
(j)
No officer, employee, agent or representative of any public utility
shall have any contact or discussion, verbal or written, with the
mayor or any member of the city’s governing body regarding an
increase in utility rates or, directly or indirectly through others,
seek to influence any such city alderman or mayor regarding any such
increase except through the application and public hearing process
provided for herein.
(k)
Nothing in this section is intended to apply to bona fide efforts
of utilities and their agents to comply with reporting requirements
herein contained, or to negotiations or discussions between the utilities
and their agents, and the administrative officers, engineers, attorneys,
rate consultants, or other like agents of the city.
(l)
This section of this article shall not become effective until September
1, 1976.
(1995 Code, sec. 20-76)
The granting (or refusing to grant) by the city council of any
general rate increase, and the conduct of public hearings upon the
question of the granting of general rate increases, shall be done
or held in accordance with the following rules, procedures, and regulations:
(1)
In addition to the notice of intent to file request for a rate increase
required elsewhere, there shall be published in a newspaper of general
circulation published in the city notice of any public hearing conducted
upon the question of granting a general rate increase to a public
utility. Such notice shall comply with the following:
(A)
Such notice shall give fair notice of the nature of the proposed
increase, including a comparison of existing rates with the proposed
new rates.
(B)
Such notice shall be published one time, not more than 20 days nor
less than 10 days prior to the scheduled date and time of the public
hearing, which date, time and location shall be stated in the notice.
(C)
The notice shall be prepared and published by the city secretary,
but the cost of publication shall be paid by the utility concerned.
(D)
Such additional notices, if any, required by the provisions of the
Texas Open Meetings Law, shall also be given by the city council,
respecting any public hearing on rate increase requests.
(E)
Insofar as consistent with the best interests of the public, the
date and time set for the public hearings so conducted shall be determined
by agreement between the utility and the city, but in cases where
no agreement is reached, the city council shall have final authority
to set the date and time for such hearing or hearings. Unless otherwise
determined, for administrative convenience or necessity, by the city
council, such hearings shall be conducted in the regular meeting palace
of the city council.
(2)
The city shall have 120 days after the date of filing of a request
for a general rate increase within which to act on such request, and
either grant the same, deny the same, or grant the same in part. Failure
to act on such rate request within said period of 120 days shall constitute
a denial of the request, unless the period within which such action
is to be taken shall be extended by written consent of the utility,
or by written order of the city council for good cause shown and upon
reasonable notice to the utility that the matter of an extension of
time is to be considered at a regular or special meeting of the city
council.
(3)
Good cause for extending the period of time within which the rate
increase request shall be acted upon shall include, but is not limited
to, complexity or magnitude of the evidence, failure of the utility
to proceed promptly with actions required of it hereunder, failure
of the utility to provide promptly such information or reports as
may be required of it hereunder, delays not attributable to the lack
of diligence of either the utility, or the city, or rate specialists,
consultants, engineers, or attorneys for either party, and newly discovered
evidence.
(4)
The city shall not be amenable to suit in any court respecting the legality of its existing rates for any utility during any period of time when a request for a general rate increase is pending before the city council under the terms of this article; provided that when the 120-day period provided for in subsection (2) above has been extended by action of the city council, without the consent of the utility, then the matter of whether such extension was based upon good cause shall be reviewable by the courts. If the courts shall find that good cause for such extension is not shown, then the rate increase request shall be deemed to have been denied and to be no longer pending.
(5)
Informal discussions respecting ratemaking matters, either with respect
to such matters generally or with respect to applications for rate
increases then pending before the city council, may be had at any
regular or special meeting of the city council, if such subject has
been properly placed on the agenda and notice thereof given, pursuant
to the Texas Open Meeting Law; but no final action or vote with respect
to any such pending rate increase request shall be had except at a
public hearing where all of the notice provisions hereof shall have
been complied with.
(6)
When a “test period,” for statutory rate base, revenues,
expenses, rate of return, and other related criteria for ratemaking
has been determined by the utility and is presented as a part of the
application for a general rate increase, then such “test period”
shall not be changed, nor other or different “test periods”
used, in the public hearings, nor in any judicial review or judicial
proceeding of any kind respecting the action of the city council on
such application. Any attempt or effort on the part of a utility to
change the “test period” involved shall be deemed to be
a new application for rate increase, and such new application shall
be subject for rate increase, and such new application shall be subject
to all of the requirements of this article respecting filing, notice,
and hearing.
(7)
There may be one or more “public hearings” conducted
hereunder with respect to any one application for a rate increase,
but each such “public hearing” shall be made to conform
to all of the notice requirements and other procedures provided hereby.
(8)
The city council, acting by and through a quorum thereof duly constituted
and assembled, may conduct any or all public hearings required hereby;
or, if the city council shall so elect, it may constitute any three
(3) of its members to sit as a body of hearing examiners, to conduct
such public hearings. If such 3-member body of hearing examiners shall
be so designated, it shall have all of the powers and authority delegable
by law to it in such circumstances, including the power to subpoena
and swear witnesses, punish for contempt, and otherwise act in the
reception and recordation of evidence; but no final action of the
city council, granting or denying the requested rate increase, either
in whole or in part, shall be made except in a public hearing before
the city council itself.
(9)
All testimony at such public hearings shall be under oath and all
exhibits or documentary evidence introduced at such hearings shall
be supported by sworn testimony. For this purpose, oaths may be administered
by appropriate parties conducting hearings.
(10)
A full and complete record of all oral and written testimony produced
at each such public hearing, including documentary testimony, shall
be made, kept, and preserved at the cost and expense of the utility.
(11)
If, prior to the final public hearing at which the city council makes its final determination on the application for rate increase, there shall have been conducted one or more prior public hearings on such application by hearing examiners appointed and acting pursuant to subsection (8) above, then a full and complete record of such prior hearings, together with the written recommendations of such hearing examiners, shall be presented and considered by the city council when it conducts its final public hearings on said application. In such latter case, the city council need not conduct further hearings but may act on the basis of such report, recommendation and record together with any written argument which any citizen, the utility, utility representative, designated city staff member, or auditor, attorney or consultant engaged by the city may wish to file (within such period of time as the city council may specifically provide in the proceeding before it) in response to such report, recommendation and record.
(12)
Upon the conclusion of final public hearings on any such rate application
(including the receipt of written arguments, as above provided), the
city council shall take final action thereon by either: (i) denying
the applications in full; or (ii) granting the application, in whole
or in part, by the enactment of an amendment to the previously existing
rate ordinance. Such action of the city council shall provide for
an effective date of any rate revisions, may require an unqualified
acceptance by the utility within a stipulated period as a condition
precedent to any rate revisions therein becoming effective, and may
provide for a moratorium of twelve months from the date of such action
before the next application for a general rate increase within such
municipality may be filed by such utility.
(13)
The city council may, by ordinance of general application, or by
order pertaining to a specific matter pending before it, specify procedures,
rules of procedure, rules or guidelines pertaining to extent and nature
of presentations or order of proceeding, and extent of cross-examination;
provided, that all such rules, regulations, and procedures shall conform
to the requirements of due process of law and shall be designed to
effect substantial justice to the utility and its consumers or customers.
(1995 Code, sec. 20-77)
The city shall have the right to select and engage rate consultants,
accountants, auditors, attorneys, engineers, or any combination thereof,
to conduct investigations, present evidence, advise and represent
the governing body, and assist with litigation on public utility ratemaking
proceedings; and the public utility engaged in such proceedings shall
be required to reimburse the governing body for the reasonable costs
of such services.
(1995 Code, sec. 20-78)
