HomeMy WebLinkAboutORD 97-16 l
ORDINANCE NO.
ENTITLED AN ORDINANCE DENYING THE REQUEST AND REDUCING
THE RATES OF ENTERGY GULF STATES, INC. IN THE CITY OF
BEAUMONT, TEXAS; PROVIDING FOR CONDITIONS, PROVIDING FOR
SEVERABILITY, AND PROVIDING FOR REPEAL.
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. (GSU); and,
WHEREAS, GSU 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, GSU on November 27, 1996, pursuant to PURA Section 2.212, made
a filing with the Public Utility Commission and with cities exercising original jurisdiction
which such filing includes, among other requests, a fuel factor increase and a request to
surcharge prior fuel costs; and,
WHEREAS, the schedule of rates proposed by GSU was suspended for a period
of ninety (90) days from the effective date stated in GSU's Statement of Intent for further
review and investigation; and,
WHEREAS, certain local regulatory authorities have heretofore initiated a review
of GSU rates; and,
WHEREAS, GSU has agreed on May 7, 1996 that any overall Texas retail base rate
reduction in this proceeding should be retroactive to June 1, 1996, with interest; and,
WHEREAS, the quality of GSU's service should be considered in the determination
of a reasonable return on GSU's invested capital; and
WHEREAS, the City having considered GSU's request after reasonable notice and
public hearing, is of the opinion and finds that the relief requested by GSU should be
denied and the rates of GSU should be reduced effective immediately;
NOW, THEREFORE, BE IT ORDAINED BY THE
CITY OF BEAUMONT
Section 1.
That the rates, tariffs, and charges of GSU for electric power and energy sold within
the City of Beaumont be revised to reduce annual base revenues by $43,614,000, a
reduction of approximately 12.29%, on a Texas retail basis. The Schedules of Rates as
required to be filed by Part 4 hereof resulting from said reduction are 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withdrawn, with the approval of the City Council.
Section 2.
The rates approved hereby fix the overall revenues of the Company at a level which
will permit GSU 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. The rates approved hereby are just and
reasonable.
Section 3.
The rates approved hereby shall be effective and in force for all consumption from
and after the date hereof and shall be charged and observed thereafter until revised
according to law. Billings for periods of consumption which include consumption both
under the Company's existing rate and the rate established hereby shall be prorated,
based on the days within each such period, as though daily consumption had been equal
on each day throughout both such periods.
Section 4.
The base rates of all customer classes and each component thereof shall be
reduced by the same equal percentage amount except for large power service and high
load factor service, which shall remain unchanged. GSU shall file with the City a schedule
of rates reflecting such rate design together with calculations supporting same no later
than 10 business days from the date hereof.
Section 5.
Any and all GSU requests for any type relief or modification of existing tariffs, rates
or schedules not specifically addressed herein is denied.
Section 6.
Notwithstanding any other provision herein contained, the rates of GSU within the
City of Beaumont shall not, in any case, exceed the rates of customers of GSU 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 GSU, its agents, servants or
employees to collect or attempt to collect higher rates within the City of Beaumont than are
collected by GSU within unincorporated areas.
Section 7.
That 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 GSU within
the City of Beaumont in accordance with Public Utility Regulatory Act §2.212.
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 GSU.
Section 9.
Should any part, sentence or phrase of this ordinance be determined to be unlawful,
void or unenforceable, the validity of the remaining portions of this Ordinance shall not be
adversely effected. No portion of this Ordinance shall fail or become inoperative by reason
of the invalidity of any other part. All provisions of his Ordinance are severable.
Section 10.
That all Ordinances, Resolutions, or parts thereof, in conflict herewith are repealed
to the extent of such conflict.
PASSED BY THE CITY COUNCIL of the City of Beaumont on this the ZdaL day
of ` 1 , 1997.
-Mayor-