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Council approves joining legal intervention in AEP Texas rate case; firm to seek reimbursement of rate-case expenses
Summary
El Campo adopted Resolution R2025-27 to join other cities in intervening in an AEP Texas rate proceeding. Staff said joining will not cost the city upfront; council approved cooperation with attorneys and directed that the company reimburse cities' rate-case expenses if the intervention yields billable fees.
The El Campo City Council voted to approve Resolution R2025-27 to join other municipal participants in intervening in an AEP Texas rate proceeding before the appropriate regulatory commission.
Courtney, the city manager, told council that Lloyd Gosslink (as described in the staff report) had contacted cities to offer coordinated representation to contest AEP’s proposed rate increase. Staff told council the proposed increase would raise residential bills by about $0.60 per month, and that joining the group would not require an upfront cost from the city.
A discussion clarified how legal fees are handled: a staff member explained that, if the coordinated effort is successful to any degree, the attorneys’ fees incurred by the group may be recovered through the rate-setting process and ultimately collected via customer rates. As one speaker put it, those fees “get passed on to the consumer” and “they get AEP does get the authority to add that to your rate to repay those fees.”
A councilmember moved to adopt Resolution R2025-27; another councilmember seconded. The motion carried by voice vote. The resolution authorizes the city to participate and to cooperate with the other cities and the named attorneys and consultants and requires the company to reimburse the city's rate-case expenses if applicable.
