Title
Consider and take action on a resolution by the City of League City, Texas (“City”) denying Texas-New Mexico Power Company’s proposed rate increase in connection with its statement of intent submitted on about on November 14, 2025; requiring the reimbursement of municipal rate case expenses; authorizing participation in the coalition of similarly situated cities; authorizing intervention and participation in related rate proceedings; authorizing the retention of special counsel; finding that the meeting complies with the open meetings act; making other findings and provisions related to the subject; and declaring an effective date (City Attorney)
Background:
On November 14, 2025, Texas-New Mexico Power Company (TNMP) filed an application to increase its annual revenues by approximately $34.0 million, which represents an increase in revenue of about 6.0% in retail rates. For a residential customer using 1,000 kWh per month, TNMP’s proposed rates would increase a customer’s bill by about $5.50 per month. This is TNMP’s first comprehensive base rate case since 2018.
TNMP proposed an effective date of December 23, 2025, for its increase in rates. As is explained below, the proposed resolution related to TNMP’s application to increase rates, if adopted, denies TNMP’s proposed increase.
CITY JURISDICTION TO SET TNMP’s RATES:
Municipalities that have not ceded their original jurisdiction to the Public Utility Commission of Texas (PUCT) have exclusive, original jurisdiction over an electric utility’s rates, services, and operations within a city’s boundaries. This means that for a utility like Texas-New Mexico Power Company (TNMP) to change its rates it must seek approval to do so from the city in which it provides its service. But even if a city has ceded its jurisdiction to the PUCT, a city nonetheless has the statutory right to participate in rate proceedings before the PUCT.
BASIS FOR TNMP’s REQUEST:
TNMP asserts as the main factors for its propos...
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