HomeMy WebLinkAboutRES 07-025 RESOLUTION NO. 07-025
A RESOLUTION OF THE CITY COUNCIL OF BEAUMONT,
TEXAS, AUTHORIZING PARTICIPATION WITH OTHER
ENTERGY SERVICE AREA CITIES IN MATTERS
CONCERNING ENTERGY GULF STATES, INC., AT THE
PUBLIC UTILITY COMMISSION OF TEXAS IN 2007.
WHEREAS, Entergy Gulf States' (EGSI) implementation of customer choice has
been delayed due to lack of competition; lack of independent market structures and
organizations in its service territory to implement fair competition; and because EGSI's
ability to control the market in its region has not been evaluated, EGSI will continue to be
regulated;
WHEREAS, changes to the Public Utility Regulatory Act addressing rates and rate
proceedings will have a direct impact on EGSI and customer bills during the continued
transition to competition;
WHEREAS, EGSI is scheduled to litigate its request in various proceedings at the
Public Utility Commission in 2007 related to various fuel cost surcharges and reconciliation,
capacity cost surcharges and reconciliation; Hurricane Rita cost securitization and
reconciliation, for approval of various market structures necessary for the implementation
of fair competition, and for any type of base rate adjustment proceedings;
WHEREAS, EGSI is scheduled to file fuel factor proceedings at the Public Utility
Commission in March and September 2007, and file other fuel proceedings during 2007
to reconcile fuel, to surcharge or refund fuel charges, and to change the fuel mechanism,
along with various surcharge requests impacting rates;
WHEREAS, EGSI may file a base rate adjustment proceeding at the Public Utility
Commission in Summer of 2007 under current Legislation;
WHEREAS, Cities have a duty to set fair and reasonable rates for both the
Company and ratepayers within Cities;
WHEREAS, Cities have original jurisdiction over rates, operations, and services of
an electric utility in areas in the municipality pursuant to Tex. Util. Code §33.001;
WHEREAS, Cities have standing in each case before the Public Utility Commission
of Texas that relates to an electric utility providing service in the municipality pursuant to
Tex. Util. Code §33.025;
WHEREAS, Cities are entitled to reimbursement by the utility of their reasonable
rate case expenses to participate in cases that are deemed rate proceedings pursuant to
Tex. Util. Code §33.023.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF BEAUMONT, TEXAS, that:
SECTION 1. The City of Beaumont shall participate with other EGSI service area
Cities to intervene in EGSI's various rate filings related to the various fuel cost surcharges
and reconciliation, capacity cost surcharges and reconciliation; Hurricane Rita cost
securitization and reconciliation, for approval of various market structures necessary for
the implementation of fair competition, and for any base rate adjustment proceedings on
filo at the Public Utility Commission in 2007 seeking appropriate regulatory scrutiny.
The City of Beaumont shall participate with other EGSI service area Cities to
intervene in proceedings at the Public Utility Commission on file in 2007 concerning EGSI's
readiness for competition, market power, organizations and structures to assure fair
competition to all customer classes.
The City of Beaumont shall participate with other EGSI service area Cities to intervene
in proceedings at the Public Utility Commission on file in 2007 concerning EGSI's base
rates charged to customers.
All such actions shall be taken pursuant to the direction of the Cities' Steering
Committee. Cities' Steering Committee shall have authority to retain rate consultants,
lawyers, and other representatives. Cities' Steering Committee shall direct the actions of
Cities' representatives in the above proceedings. The Steering Committee is directed to
obtain reimbursement from EGSI of all reasonable expenses associated with participation
in said proceedings.
SECTION 2. This resolution shall be effective from and after the date of its
passage.
PASSED by U n a no rnou3 vote of the City Council of the City of Beaumont,
Texas, this 23rd day of January, 2007.
THE CITY OF BEAUMONT, TEXAS
:
B 1
Y
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A Mayor Pr Nancy Beaulieu -
ATTEST: (j
City Secretary
APPROVED AS TO FORM:
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