HomeMy WebLinkAboutMIN MARCH 24 1997 M I N U T E S . CITY OF BEAUMONT
Lulu L.Smith DAVID W. MOORE, MAYOR Andrew P.Cokinos, Mayor Pro Tem
Guy N.Goodson CITY COUNCIL MEETING Becky Ames
John K.Davis MARCH 24,1997 Bobbie J. Patterson
Lane Nichols,City Attorney Ray A. Riley,City Manager Patrice Fogarty,City Clerk
The City Council of the City of Beaumont, Texas, met in a special session on March 24, 1997, at
the City of Beaumont Civic Center, 701 Main St., Beaumont, Texas, at 4:00 p.m., to participate in
a joint public hearing with other cities for the purpose of hearing comments, reports, evidence, and
recommendations regarding the pending Entergy Gulf States rate case.
Present at the meeting were: Mayor Moore, Mayor Pro Tem Cokinos, Councilmembers Smith,
Goodson, Ames, and Patterson. Also, present were Ray A. Riley, City Manager; Lane Nichols, City
Attorney; and Patrice Fogarty, City Clerk. Councilmember John Davis was absent.
OPENING
*Invocation Pledge of Allegiance Roll Call
*Public Comments
Mayor Moore called the public hearing to order at 4:00 p.m. Lane Nichols, Beaumont City Attorney
gave the invocation; and Councilmember Guy Goodson led the pledge of allegiance.
COMMENTS
Karen Johnson, Entergy Gulf States, Inc., made a presentation concerning Entergy's rate increase
request. Ms. Johnson reported that they filed a supplemental testimony with the Public Utility
Commission last week, stating that Entergy will commit to quality serve and guarantees. She
added that the increase request is due mainly to fuel cost increases, and the last time fuel rates
were raised was in 1991. Entergy has stated that fuel costs have risen 34 percent from the 1994
costs. Entergy wants to pay off its River Bend debt in seven years instead of the 30 years
reamining in its schedule.
Don Butler, of Butler, Porter, Gay & Day, attorneys representing the Steering Committee of cities,
introduced Dan Lawton of Diversified Utility Consultants, Inc. Mr. Lawton gave a brief report on
their investigation of Entergy's proposal to increase rates and implement their seven-year
Transition to Completion Plan. He added that Entergy's rate revenue proposal is a $41.4 million
surcharge to be collected over 12 months starting in July, 1997, and $19.6 million per annum
increase in total rates. Under the merger plan of Gulf States Utilities and Entergy, it was claimed
that there would be fuel cost decreases and non-fuel efficiency savings resulting from the merger;
however, these have not materialized under the Company's new proposal. Mr. Lawton added that
DUCT, as the cities' consultant, recommended that base rates be reduced, and if they are reduced
by cities when exercising their original jurisdiction, the rate reduction in the amount of $43,614,000
(12.29%) should become effective immediately; and refunds for service back to June 1, 1996,
should be credited on the next billing cycle.
Mayor Moore opened the floor for public comments at this time.
Luke Barrow, Orange, TX, commented that he was extremely disturbed by the rate increase
request and supports the freezing of the current rates until the year 2000.
Claude Browning, Fannett, TX, commented that he would urge the cities to deny a rate increase.
Claude Hunter, Beaumont, TX, stated that he is very dissatisfied with the serve and maintenance
of lines provided by Entergy.
Dean Robinson, Silsbee, TX, commended Entergy for their efforts in the areas of economic
development for the entire area, such as the Team City projects, which greatly assisted
communities which have no economic development corporation of their own.
Lonnie Arrington, Beaumont, TX, stated that he likes the idea of competition and supports
deregulation.
Bessie Chissum, Beaumont, Texas, publicly commended Entergy for their charitable contributions
throughout the community.
Mr. Butler, Butler, Porter, Gay & Day, stated that final action, by way of an ordinance, must be
completed by each city before April 8, 1997.
There being no further questions or comments, Mayor Moore adjourned the public hearing at
5:06 p.m.
Mayor David W. Moore
ATTEST:
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Patrice Fogarty, Clerk
Public Hearing Minutes;3/24/97;Page 2