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HomeMy WebLinkAboutRES 96-103 RESOLUTION NO. A RESOLUTION OF THE CITY OF BEAUMONT, TEXAS INITIATING A PROCEEDING UNDER SECTION 2.211 OF THE PUBLIC UTILITY REGULATORY ACT; DIRECTING GULF STATES UTILITIES COMPANY TO FILE CERTAIN INFORMATION WITH THE CITY OF BEAUMONT, TEXAS, SETTING A PROCEDURAL SCHEDULE FOR THE GATHERING AND REVIEW OF NECESSARY INFORMATION IN CONNECTION THEREWITH; SETTING DATES FOR THE FILING OF THE CITY'S ANALYSIS OF THE COMPANY'S FILING AND THE COMPANY'S REBUTTAL TO SUCH ANALYSIS; AND SETTING A PUBLIC HEARING FOR THE PURPOSES OF DETERMINING IF THE EXISTING RATES OF GULF STATES UTILITIES COMPANY ARE UNREASONABLE OR IN ANY WAY IN VIOLATION OF ANY PROVISION OF LAW AND THE DETERMINATION BY THE CITY OF BEAUMONT, TEXAS, OF JUST AND REASONABLE RATES TO BE CHARGED BY GULF STATES UTILITIES COMPANY. WHEREAS, the City of Beaumont, Texas, is a regulatory authority under the Public Utility Regulatory Act and has original jurisdiction over the rates of Gulf States Utilities Company to determine if such rates are fair, just and reasonable; and, WHEREAS, preliminary information furnished by Gulf States Utilities Company supports the filing of a complaint pursuant to Section 2.211 of the Public Utility Regulatory Act and the initiation of a procedure pursuant thereto for the further investigation and review of the rates of Gulf States Utilities Company to determine if such rates are fair, just and reasonable; and, WHEREAS, the stipulation and agreement in Docket 11292, before the Public Utility Commission of Texas, application of Entergy Corporation and Gulf States Utilities for sale, transfer or merger, provides that if the base rates of the company are reduced then such rate reduction shall be effective from the date of initiation of this procedure; and, WHEREAS, such stipulation and agreement requires the filing of a rate case by the company in November, 1996 utilizing a test year ending June 30, 1996; and, WHEREAS, the Cities' Steering Committee has attempted to avoid added costs and unnecessary rate filings by offering to recommend that the cities forego this proceeding in exchange for the company's agreement to make any rate reduction from such November, 1996 filing retroactive to March 1, 1995, but the company has declined to accept such efforts of the Cities' Steering Committee to avoid unnecessary expenses and filings; and, WHEREAS, a procedural schedule should be established for filing of certain information by the Company, procedures to be followed to obtain and review information from the Company, the filing of an analysis of such information by the City, the filing of rebuttal information from the Company, and a public hearing at which time the City shall make a determination if the existing rates of Gulf States Utilities Company are unreasonable or are in any way in violation of any provision of law and if such rates should be revised and just and reasonable rates determined for Gulf States Utilities Company. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT, TEXAS: 1. Based on proper review of preliminary information furnished by Gulf States Utilities supporting a complaint pursuant to Section 2.211 of the Public Utilities Regulatory Act, a proceeding pursuant thereto is hereby initiated to review the present rates and determine the just and reasonable rates of Gulf States Utilities Company. 2. On or before August 1, 1996, Gulf States Utilities Company shall file, with the 2 City of Beaumont, Texas, Schedules A, B, C, D, E, F, G, H, I, K, 0, and S of the Rate Filing Package required by the Public Utility Commission of Texas, along with all associated work papers for a test year ending June 30, 1996 (the City Council may grant an extension of the time for filing such rate filing package on agreement of the parties.) Testimony need not be prepared, but a narrative description shall be provided sufficient to describe such information and costs shall be allocated to customer classes. 3. A public hearing shall be conducted by the City Council on the 14th day of May, 1996 to consider the setting of interim rates. 4. City's representatives shall have the right to obtain additional information from the Company through the filing of requests for information, which shall be responded to within ten (10) days from the receipt of such request for information. 5. The City, or its designated representatives, shall file an analysis of the Company's filing and information gathered on or before 90 days after the company files its rate filing package required by Section 2 above. 6. The Company shall file any rebuttal to the analysis of the City or its designated representatives on or before 30 days after the City, or its designated representatives, files the analysis required by Section 5 above. 7. A public hearing shall be conducted by the City Council of the City of Beaumont, Texas, in January 1997, in Beaumont, Texas, or such other location as may be designated by the City Council. At such public hearing, a determination of the reasonableness of the existing rates of Gulf States Utilities shall be made by the City Council of the City of Beaumont and, if necessary, just and reasonable rates shall be 3 determined to be observed and enforced from and after the date of the initiation of this proceeding for all services of Gulf States Utilities Company within the City of Beaumont, Texas. Such public hearing may be conducted in conjunction with public hearings conducted by other municipalities served by Gulf States Utilities Company. 8. The City Council may, from time to time, amend this procedural schedule and enter additional orders as may be necessary in the public interest and to enforce the provisions hereof. PASSED BY THE CITY COUNCIL of the City of Beaumont on this the day of , 1996. - Mayor - 4