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HomeMy WebLinkAboutRES 08-074 RESOLUTION NO. 08-074 A RESOLUTION OF THE CITY COUNCIL OF BEAUMONT, TEXAS, AUTHORIZING PARTICIPATION WITH OTHER ENTERGY SERVICE AREA CITIES IN MATTERS CONCERNING ENTERGY TEXAS, INC. AT THE PUBLIC UTILITY COMMISSION OF TEXAS IN 2008. WHEREAS, Entergy Texas, Inc.'s (ETI) 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 ETI's ability to control the market in its region has not been evaluated, ETI will continue to be regulated; and, WHEREAS, changes to the Public Utility Regulatory Act addressing rates and rate proceedings will have a direct impact on ETI and customer bills during the continued transition to competition; and, WHEREAS, ETI is scheduled to litigate its request in various proceedings at the Public Utility Commission and Federal Energy Regulatory Commission in 2008 related to various fuel cost surcharges and reconciliation,capacity cost surcharges and reconciliation; for approval of various market structures necessary for the implementation of fair competition, and for any type of base rate adjustment proceedings; and, WHEREAS, ETI is scheduled to file fuel factor proceedings at the Public Utility Commission in March and September, 2008, and file other fuel proceedings during 2008 to reconcile fuel, to surcharge or refund fuel charges, and to change the fuel mechanism along with various surcharge requests impacting rates; and, WHEREAS, ETI has filed a proceeding to determine the proper Texas allocation of rough production cost equalization payments from Entergy Arkansas; and, WHEREAS, Cities have the statutory right to set fair and reasonable rates for both the Company and ratepayers within Cities; and, 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; and, 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; and, 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: Section 1. THAT the City of Beaumont shall participate with other Cities to intervene in ETI's various rate filings related to the various fuel cost surcharges and reconciliation, capacity cost surcharges and reconciliation; the allocation of rough production cost allocation payments, for approval of various market structures necessary for the implementation of fair competition, and for any base rate adjustment proceedings on file at the Public Utility Commission and the Federal Energy Regulatory Commission in 2008 seeking appropriate regulatory scrutiny. THAT the City of Beaumont shall participate with other Cities to intervene in proceedings at the Public Utility Commission on file in 2008 concerning ETI's readiness for competition, market power, organizations and structures to assure fair competition to all customer classes. That the City of Beaumont shall participate with other Cities to intervene in proceedings at the Public Utility Commission on file in 2008 concerning ETI's base rate charge 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 and lawyers. Cities'Steering Committee shall direct the actions of Cities' representatives in the above proceedings. The Steering Committee is directed to obtain reimbursement from ETI 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 THE CITY COUNCIL of the City of Beaumont this the 18th day of March, 2008. AW - Ma r B cky Ames - JA TEST: City Clerk APPROVED AS TO FORM: f i y 00rhe