HomeMy WebLinkAboutRES 07-078 RESOLUTION NO. 07-078
A RESOLUTION OF THE CITY COUNCIL OF BEAUMONT, TEXAS,
SUPPORTING THE PASSAGE OF HOUSE BILL 2818 DELAYING
RETAIL OPEN ACCESS IN ENTERGY GULF STATES, INC.'S
SERVICE AREA
WHEREAS, On December 29, 2006, Entergy Gulf States Inc. ("BGSI" or
"Company") filed its transition to competition plan with the Public Utility Commission of
Texas ("PUC" or"Commission") in accordance with Public Utilities Act, Tex. Util. Code
("PURA") § 39.452(8);
WHEREAS, EGSI's plan, as filed, contemplates that EGSI will join the Electric
Reliability Council of Texas ("ERCOT") and that competition will commence in 2013;
WHEREAS, EGSI estimates that the costs of joining ERCOT and transitioning to
competition will cost over$1 billion;
WHEREAS, EGSI requests current reimbursement of its costs to join ERCOT and
transition to competition;
WHEREAS, the PUC has docketed this matter as PUC Docket No. 33687 and
determined that the case shall proceed as a contested case;
WHEREAS, EGSI estimates that competition will result in at least a 40%increase
in rates;
WHEREAS, all other non-ERCOT utilities have delayed the transition to
competition for their service areas;
WHEREAS, EGSI has increased its rates over the last year through surcharges
designed to recover $217.5 million for EGSI's failed transition to competition and $321
million to restore power following Hurricane Rita;
WHEREAS, many customers in the EGSI service area are still recovering from
Hurricane Rita and the additional rate increases contemplated by EGSI's transition to
competition plan could stifle economic development;
WHEREAS, on March 8, 2007, House Bill 2818, delaying retail open access in
EGSI's service area,was introduced;
WHEREAS, the Cities' Steering Committee has recommended supporting the
passage of House Bill 2818 delaying retail open access in EGSI's service area, as has
been done with other non-ERCOT utilities;
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NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF BEAUMONT, TEXAS,that:
SECTION 1. The City of Beaumont supports the passage of House Bill 2818
delaying retail open access in EGSI's service area.
SECTION 2. This resolution shall be effective from and after the date of its
passage.
PASSED by unanimous vote of the City Council of the City of
Beaumont, Texas, this 20th day of March, 2007.
THE CITY F E NT, TEXAS
By:
A TEST:
Ar
CL
City Secretary
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APPROVED AS TO FORM:
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