HomeMy WebLinkAboutRES 09-043 RESOLUTION NO. 09-043
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
AND THE FEDERAL ENERGY REGULATORY COMMISSION IN
2009
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 2009 related
to various fuel cost surcharges and reconciliations, capacity cost surcharges and
reconciliation; plans for approval of various market structures necessary for the
implementation of fair competition, ETI's plan for transitioning to competition,
Hurricane Ike cost recovery, 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 February and August 2009, and file other fuel proceedings during 2009 to
reconcile fuel, to surcharge or refund fuel charges, and to change the fuel mechanism,
along with various surcharge requests impacting rates; and
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WHEREAS, ETI is scheduled to file a proceeding to determine the proper Texas
allocation of rough production cost equalization payments from Entergy Arkansas; and
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WHEREAS, ETI is scheduled to file a proceeding to recover costs incurred in
association with the restoration of service to retail customers following Hurricane Ike;
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 standing before each Federal
Energy Regulatory Commission case in which the City may be affected pursuant to 18
C.F.R. §385.214; 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, TEXAS, that:
SECTION 1.
The City of Beaumont shall participate with other Cities in the Entergy Texas,
Inc. Service Area to intervene in ETI's various rate filings related to the various fuel cost
surcharges and reconciliation, capacity cost surcharges and reconciliation, the allocation
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of rough production cost allocation payments, plans for approval of various market
structures necessary for the implementation of fair competition, ETI's transition to
competition plan, costs associated with the restoration of service following Hurricane Ike,
and for any base rate adjustment proceedings on file at the Public Utility Commission in
2009 seeking appropriate regulatory scrutiny in any case on file at the Federal Energy
Regulatory Commission affecting the City and its residents.
The City of Beaumont shall participate with other Cities in the Entergy Texas,
Inc. Service Area to intervene in proceedings at the Public Utility Commission on file in
2009 concerning ETI'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 Cities in the Entergy Texas,
Inc. Service Area to intervene in proceedings at the Public Utility Commission and the
Federal Energy Regulatory Commission on file in 2009 concerning ETI's rates charged
to customers.
The City of Beaumont shall participate with other Cities in the Entergy Texas,
Inc. Service Area to intervene in proceedings at the Public Utility Commission related to
costs incurred as a result of Hurricane Ike.
All such actions shall be taken pursuant to the direction of the Entergy Texas, Inc.
Service Area 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.
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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, Texas, this the 10th day of
February, 2009.
- Mayor Becky Ames -
A ST:
Tina Broussard 11
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City Secretary
APPROVED AS TO FORM: W
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City Attorne
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