City to mull rate increase

The Marshall City Commission is expected to deny a proposed rate increase of $74.98 million annually by Southwestern Electric Power Company during its regular meeting at 6 p.m. tonight in the commission chambers.

SWEPCO filed a statement of intent with the Public Utilities Commission of Texas on Aug. 28 to increase its annual revenue, which will “significantly increase rates for all customer classes,” according to documents provided with Thursday’s agenda.

The request would result in an average increase of $16 per month, or about 21.5 percent, for a residential customer in East Texas using 1,000 kilowatt-hours per month if approved as submitted, according to information provided by the company at the time of filing. The new rates could go into effect in the spring.

As they consider denying SWEPCO’s request, the city commissioners will also be joining a coalition of cities, Cities Advocating Reasonable Deregulation, which has a steering panel that provides “direction and guidance to lawyers who are representing said cities.”

The city has a regulatory authority under the Public Utility Regulatory Act, giving it “exclusive original jurisdiction over SWEPCO’s rates, operations and services within the city.”

The City of Marshall is required to take action on the proposed increase by or before Oct. 2, or SWEPCO’s application as filed will be deemed approved by law.

Commissioners will also:

Consider second reading of an ordinance to amend Chapter 14, Garbage, Trash and Weeds, to increase solid waste disposal charges by 2.2 percent, as provided for in the city’s agreement with Allied Waste Services.

Discuss the need for and status of improvements requested for Airport Park, drainage issues and needs, and the use of compressed natural gas fuel for some city vehicles.

Consider approval of the second quarter investment report.

As of June 30, the city’s portfolio was valued at $19,218,738.39. The city also earned $44,321.60 in interest income during the second quarter at a return rate of 0.873 percent with a year-to-date return rate of 1.035 percent, according to a memo from Finance Director Lisa P. Agnor.

Consider two rezoning requests.

Consider awarding a bid to provide an electronic marquee sign for the Marshall Civic Center.

Consider awarding a $533,769.23 contract for the 2009 street improvements project to Reynolds & Kay, Ltd., of Tyler.

Hear reports requested by Commissioner Zephaniah Timmins, including a cost comparison report for the fees of consulting engineering services versus the cost of employing a full-time engineer and a report on sediment washing into streets from construction sites.

Hear reports on various boards and committees, the status of stimulus projects, and TAC’s energy efficiency audit.

By TERRI HAHN

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