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HomeMy WebLinkAboutMIN OCT 14 1993 SPECIAL SESSION CITY COUNCIL - CITY OF BEAUMONT HELD OCTOBER 14, 1993 - 7:30 P.M. BE IT REMEMBERED that the City Council of the City of Beaumont, Texas, met in special session this the 14th day of October, 1993, in the Beaumont Civic Center, in conjunction with other cities under Sub- Section 43 of the Public Utility Regulatory Act, to conduct a Public Hearing concerning whether the current electricity rate of Gulf States Utilities Company is just and reasonable, with the following present: HONORABLE: Evelyn M. Lord Mayor Andrew P. Cokinos Councilman At Large Lulu L. Smith Councilman, Ward I John R. Davis Councilman, Ward III Absent: Guy N. Goodson Mayor Pro Tem Councilman, Ward II Brian R. Alter Councilman At Large David W. Moore Councilman, Ward IV Ray A. Riley City Manager Lane Nichols City Attorney Barbara Liming Deputy City Clerk -000- Port Arthur Mayor Mary Ellen Summerlin opened the Public Hearing and asked Vidor Mayor Ruth Woods to lead the Invocation. -000- Mayor Evelyn M. Lord welcomed participants in the Public Hearing, and said, "I trust that we're all going to go away with a feeling that things have been well done. " -000- A Roll Call with a statement that proper notices were posted and published was given by mayors from: China, quorum; Port Neches, quorum; Groves, quorum; Nederland, quorum; Beaumont, quorum; Bevil Oaks, quorum; Vidor, quorum; Port Arthur, two members present, not a quorum. Mayor Summerlin confirmed with Beaumont City Attorney Lane Nichols that since no legal action is likely to be taken tonight, lack of a quorum will not present any legal problem with the Public Hearing. -000- Mayor Summerlin said that by common consent between the cities and Gulf -256- October 14, 1993 State Utilities Company, Mr. Don Butler, the attorney hired on behalf of the cities, is asked to be the first speaker. Mr. Don R. Butler with the Law Offices of Butler, Porter, Gay & Day, Austin, Texas, reported that the proposed settlement in pending rates cases presented tonight has been recommended by the Cities sIs Steering Committee (Chairman--Harry Wright, Port Neches; Co-Chairman, Bill Storey, Panorama Village; Lane Nichols, Beaumont; and Doyle Curtis) and representatives in those cases and agreed to by Gulf States Utilities Company. Mr. Butler said the settlement reached with GSU calls for a two-step reduction: $22.5 million effective November 1, 1993, and an additional $20 million effective September 1, 1994. In addition, Mr. Butler said there will be a one-time bill credit to customers' December, 1993 bills totalling $20 million. The effect of the rate reduction will reduce customer's base rates by about 9%; total customer bills will vary by customer class, but will be reduced approximately 7% depending upon the amount of fuel usage. Mr. Butler said this rate reduction is the result of an inquiry commenced in June, 1993 by 13 cities served by GSU with the engagement of the firm of Diversified Utility Consultants of Austin to review GSU's rate and submit a report to each city. Also, Mr. Butler said it is anticipated that other cities and the PUC will act as a result of this action, that three other GSU case have been settled, and one will call for an additional $2 .9 million refund settlement allocated primarily to residential customers as a credit in December. Mr. Butler commended the cities for exercising their responsibility as regulatory authorities, said without their action, this rate reduction would not have occurred, and has been accomplished more expeditiously and with much less cost than usually incurred in Austin, and volunteered for Mr. Jack Pous and Mr. Dan Lawton from Diversified Utility Consultants and he to answer any questions. There were no question from mayors or councilmen present. -000- Mayor Summerlin invited a statement from GSU regarding the proposed settlement. Mr. Don Clements, Senior Vice-President with Gulf States, echoed Mr. Butler's comments concerning the efforts of the Steering Committee, Mr. Nichols, Mr. Wright, Mr. Butler, and the consultants from Diversified in reaching a settlement. Mr. Clements said that they did not agree on everything, but hopes they have "set a new way of doing business together" so that agreements can be reached on disputes. He said the negotiations were very complex and that every issue could not be resolved and they had they had to "agree not to agree. " He said that "on the whole, the settlement is a reasonable resolution of a number of issues. . .more than just a rate review. . .a resolution of some of the pending Gulf States litigation in regulatory cases. " Mr. Clements said they are not happy with a solution that reduces the company's revenues, since they have had hard financial times, but believe there are benefits -257- October 14, 1993 to come out of this resolution and said "it is a good way. . .to get together and work on on these kinds of problems. " He said there were hard decisions to make and they "accept the proposal that's been made. . .and will work together to try to make it work out. " Mr. Clements said he and GSU's witnesses for the case would answer any questions City Councils' would like to direct to them. There were no questions from any City Council members. -000- Mayor Summerlin invited statements from members of the audience. There being no one wishing to comment, the Public Hearing was closed on a motion made by Mayor Pro Tem Netterville of Bevil Oaks and seconded by Mayor Moore of Groves. Question: Ayes: All Nayes: None -000- There being no further business, the Special Session of City Council was adjourned. -000- I, Barbara Liming, Deputy City Clerk of the City of Beaumont, Texas, certify that the above is a true copy of the Minutes of the Special City Council Session held October 14, 1993 . Barbara Liming Deputy City Clerk -258- October 14, 1993