HomeMy WebLinkAboutORD 99-006 ORDINANCE N0. 9
AN ORDINANCE APPROVING SETTLEMENT OF VARIOUS
CASES AND SETTING THE RATES OF ENTERGY GULF
STATES, INC. IN THE CITY OF BEAUMONT, TEXAS;
PROVIDING FOR CONDITIONS, SEVERABILITY, AND
REPEAL OF CONFLICTING ORDINANCES.
WHEREAS, the City of Beaumont is a regulatory authority under the Public Utility
Regulatory Act (PURA) and has original jurisdiction over the rates of Entergy Gulf States,
Inc. (EGS or Company); and
WHEREAS, EGS is required under the terms of the merger agreement in Docket
11292 before the Public Utility Commission to file a rate proceeding to pass on to
ratepayers benefits from such merger and other cost reductions which have occurred; and
WHEREAS, EGS on November 30, 1998 made a filing with the Public Utility
Commission and with cities exercising original jurisdiction; and
WHEREAS, the schedule of rates proposed by EGS was suspended for a period
of ninety (90) days from the effective date stated in EGS' Statement of Intent for further
review and investigation; and
WHEREAS, numerous other cases involving the rates of EGS within the City are
now pending; and
WHEREAS, a comprehensive settlement has been recommended by the Steering
Committee of Cities participating in such cases which will resolve or limit the impact of
such cases; and
WHEREAS, the City Council having considered EGS' request and the proposed
settlement after reasonable notice and public hearing, is of the opinion and finds that the
settlement recommended by the Cities' Steering Committee should be approved and rates
set in accordance therewith;
NOW, THEREFORE, BE IT ORDAINED
BY THE CITY OF BEAUMONT:
Section 1.
THAT the comprehensive settlement entitled "Outline of Proposed Settlement
Between EGS, Staff, Cities, OPC, TIEC, State of Texas, HLFC, and IBEW is hereby
approved.
Section 2.
Representatives of the Cities are directed to participate with other parties in the
preparation of a settlement document implementing the attached settlement outline and
to present same to the Public Utility Commission for its approval.
Section 3.
After approval of such settlement by the Public Utility Commission, the filing of
tariffs and schedules of rates with the Commission and Cities in accordance with such
settlement and the approval of same by such regulatory authorities, the rates established
thereby shall be those under which the Company shall be authorized to render electric
service and to collect charges from its customers for the sale of electric power and energy
within the corporate limits of the City until such time as said Rate Schedules may be
changed, modified, amended, or withdrawn by or with the approval of the City Council.
Section 4.
The rates approved hereby fix the overall revenues of the Company at a level which
will permit EGS a reasonable opportunity to earn a reasonable return on its invested
capital used and useful in rendering service to the public over and above the Company's
reasonable and necessary operating expenses as are just and reasonable.
Section 5.
The rates approved hereby shall be effective and in force for all consumption from
and after the effective date of the tariff required to be filed hereby and shall be charged
and observed thereafter until revised according to law.
Section 6.
Notwithstanding any other provision herein contained, the rates of EGS within the
City of Beaumont shall not, in any case, exceed the rates of customers of EGS in
unincorporated areas whether such rates for unincorporated areas are set prior to or after
the adoption of this ordinance and it shall be unlawful for EGS, its agents, servants, or
employees to collect or attempt to collect higher rates within the City of Beaumont than are
collected by EGS within unincorporated areas.
Section 7.
The action of the City Council of the City of Beaumont enacting this Ordinance
constitutes, on the date of its final passage, a final determination of rates for EGS within
the City of Beaumont.
Section 8.
Nothing contained in this Ordinance shall be construed now or hereafter as limiting
or modifying, in any manner, the right and power of the City under the law to regulate the
rates and charges of EGS.
Section 9.
That if any section, subsection, sentence, clause or phrase of this ordinance, or the
application of same to a particular set of persons or circumstances should for any reason
be held to be invalid, such invalidity shall not affect the remaining portions of this
ordinance, and to such end the various portions and provisions of this ordinance are
declared to be severable.
Section 10.
That all ordinances or parts of ordinances in conflict herewith are repealed to the
extent of the conflict only.
PASSED BY THE CITY COUNCIL of the City of Beaumont this the 2lv R day of
1999.
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