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HomeMy WebLinkAbout7909RESOLUTION NO. 7909 A RESOLUTION RELATING TO PUBLIC SERVICE COMPANY OF COLORADO FRANCHISE WHEREAS, Article 9 of the proposed Public Service Company of Colorado ( "Public Service ") franchise requires the consent of the City and payment of a transfer fee to transfer and assign the franchise, and WHEREAS, the proposed merger between Public Service and Southwestern Public Service Company ("Southwestern") will take the form of creating a new holding company known as New Center Energies, Inc., and WHEREAS, after the proposed merger the shareholders of Public Service and Southwestern will exchange their shares in their respective companies for shares in the holding company, whereupon Public Service and Southwestern will become wholly owned subsidiaries of the holding company, and WHEREAS, after the merger, Public Service will be a separate and distinct entity from the holding company and will continue to own, operate and maintain the gas distribution facilities serving the City of Pueblo as well as any franchise which may be approved by the voters. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1 The City Council does hereby concur with the opinion of Public Service that the transaction contemplated between Public Service and Southwestern is not a transfer or assignment requiring City approval or the payment of a transfer fee pursuant to Article 9 of the proposed Public Service Company of Colorado franchise because Public Service Company of Colorado will continue to own, operate and maintain its gas distribution facilities within the City and is making no transfer or assignment of the rights under the franchise to any third party. SECTION 2 Based upon the assurance of Public Service Company of Colorado and Section 8.2 of the proposed franchise requiring Public Service Company of Colorado to reimburse the City for expenses of the franchise election, the City Council does hereby waive the requirement of a security bond under Ordinance No. 5640. SECTION 3 This Resolution shall become effective upon final passage. ATTEST: City Clerk INTRODUCED: July 8 , 1996 By Charles Jones Councilperson APPROVED: Presid t of the City Council -2-