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HomeMy WebLinkAboutORD 09-003 ORDINANCE NO. 09-003 ENTITLED AN ORDINANCE BY THE CITY OF BEAUMONT, TEXAS, ("CITY") APPROVING THE RATES OF ENTERGY TEXAS, INC.,CONTAINED IN THE STATEMENT OF INTENT TO CHANGE RATES ("STATEMENT OF INTENT") FILED IN THE CITY ON DECEMBER 19, 2008; APPROVING AN EARLY EFFECTIVE DATE OF THE RATE CHANGE; FINDING THATTHE MEETING COMPLIES WITH THE OPEN MEETINGS ACT; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND DECLARING AN EFFECTIVE DATE. WHEREAS, on or about September 26, 2007, Entergy Texas, Inc. ("ETI") filed a Statement of Intent with the City to increase electric rates and charges in the ETI Service Area by$107.5 million per year in addition to an expected $5 million annual increase to its Miscellaneous Service Schedule charges resulting in about a$112 million annual increase to customers; and WHEREAS, the City suspended the effective date of ETI's rates within its jurisdictional limits until at least September 29, 2008; and WHEREAS, on August 19, 2008, ETI agreed to further extend the effective date of rates; and WHEREAS, the City intervened at the Public Utility Commission of Texas ("PUC") in PUC Docket No. 34800 with other cities ("Cities") and parties to review ETI's proposed rates, operations and services of an electric utility pursuant to City authority under the Public Utility Regulatory Act §33.025; and WHEREAS, on or about May 13, 2008, the Community Association of the Woodlands("CATW"),the Kroger Co. ("Kroger"),Office of Public Utility Counsel("OPUC"), Texas Legal Service Center("TLSC"),the Texas Ratepayers Organization to Save Energy ("Texas Rose") and ETI entered into a non-unanimous settlement ("NUS"), the Entergy Service Cities'Steering Committee recommended approval of the terms of the NUS to the Cities; and WHEREAS, the merits and the reasonableness of the NUS was reviewed and approved by three Administrative Law Judges ("ALIs")at the State Office of Administrative Hearings ("SOAR") and the ALIs concluded that the NUS and settlement rates are reasonable and in the public interest; and WHEREAS, Cities' rate consultants and attorney retained to review this matter recommended approval of the NUS rates; and WHEREAS, during October and November, 2008, Cities passed rate ordinances approving the NUS rates which were not appealed by ETI and have become final lawful rates in the City; and WHEREAS, on or about December 11, 2008, ETI reached a new settlement agreement with the PUC Staff, Industrial customers and State of Texas, parties who were not part of the NUS, for rates that are lower than the NUS levels as show on Attachment A; and WHEREAS, the NUS rates approved by the City have not yet been implemented by ETI, and the Company now proposes to implement the new lower settlement rates on a system-wide basis; and WHEREAS, ETI proposes that implementation of the lower rates is good cause to allow ETI to implement the new lower settlement rates earlier than the 35 day period prescribed by PURA §36.102 to accomplish uniform system wide rates. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: Section 1. The statement and the findings set out in the preamble to this ordinance are hereby in all things approved and adopted. Section 2. The City of Beaumont, Texas, hereby approves the rates requested by ETI in its December 19, 2008, Statement of Intent. Section 3 The City of Beaumont,Texas,finds good cause to grant ETI's request to implement the new lower rates earlier than the 35 day period prescribed by PURA § 36.102 so customers within the City may benefit from lower electric rates and charges. Section 4. The effective date of the rate change is for bills rendered on and after January 28, 2009. Section 5. The meeting at which this ordinance was approved was in all things conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551. Section 6. The ordinance shall become effective from and after its passage. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 27th day of January, 2009. ,Ili - Mayor Becky Ames - Otis, ��� AV ATTACHMENT A IMPACT OF ETI DECEMBER 19,2008 STATEMENT OF INTENT TO CHANGE RATES LINE RATE City Approved ETI December 19,2008 ETI Proposed Percent NO. CLASS NUS Rates Rate Proposal Rate Reduction Recloctiom i Residental $268,983,447 $265,878,562 -$3,104,885 -1,15% 2 Small General Service $19,905,680 $17,937,790 -$1,967,890 -9.89% 3 General Service $119,648,970 $116,169,099 -$3,479,871 -2.91% 4 Large General Service $36,045,490 $34,669,798 -$1,375,692 =3.829fi 5 large Industrial Power Service $96,627,687 $84,946,265 -$11,681,422 -12.09 6 Lighting iE g $7,063,685 $7,097,980 $34,295 0.49% 7 Total System $548,274,959 $526,699,494 -$21,575,465 -3.94%