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HomeMy WebLinkAboutORD 10-008 ORDINANCE NO. 10-008 ORDINANCE OF THE CITY OF BEAUMONT, TEXAS AUTHORIZING THE SUSPENSION OF THE EFFECTIVE DATE FOR AN ADDITIONAL NINETY (90) DAYS BEYOND THE FEBRUARY 3, 2010, EFFECTIVE DATE PROPOSED BY ENTERGY TEXAS, INC., IN CONNECTION WITH ITS RATE INCREASE APPLICATION ENTITLED "APPLICATION OF ENTERGY TEXAS, INC. FOR AUTHORITY TO CHANGE RATES AND TO RECONCILE FUEL COSTS", FILED ON DECEMBER 30, 2009; AUTHORIZING THE HIRING OF LAWYERS AND RATE EXPERTS; AUTHORIZING THE CITY'S PARTICIPATION TO THE FULL EXTENT PERMITTED BY LAW AT THE PUBLIC UTILITY COMMISSION OF TEXAS, REQUIRING REIMBURSEMENT OF MUNICIPAL RATE CASE EXPENSES; FINDING THAT THE 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 December 30, 2009 Entergy Texas, Inc. ("ETI") filed a Statement of Intent with the City to increase electric rates in the ETI Service Area by $198.7 million per year; and WHEREAS, Cities have exclusive original jurisdiction over the rates, operations and services of an electric utility in areas in the municipality pursuant to the Public Utility Regulatory Act §33.001(a); and WHEREAS, Public Utility Regulatory Act § 33.021 requires a local regulatory authority to make a reasonable determination of rate base, expenses, investment and rate of return and retain the necessary personnel to determine reasonable rates; and WHEREAS, the City's reasonable cost for regulatory expenses in ratemaking proceedings shall be reimbursed by the Electric Utility under Public Utility Regulatory Act § 33.023; and WHEREAS, given the complexity of the proposed rate increase and the need to fully review the proposed rate adjustment it is necessary to suspend the effective date for implementing the proposed rates until at least May 4, 2010 in order to allow the City's rate experts sufficient time to determine the merits of ETI's proposed rates; and WHEREAS, in order to maximize the efficient use of resources and expertise in reviewing analyzing, and investigating ETI's $198.7 million rate increase request, City's efforts will be coordinated with similarly situated municipalities through the Entergy Texas, Inc. Cities Service Area Steering Committee; and WHEREAS, the City will join with other ETI service area municipalities in a steering committee in order to coordinate the hiring and direction of counsel and consultants working on behalf of the steering committee and the City; and NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT, TEXAS, THAT: Section 1. That the statement and findings set out in the preamble to this resolution are hereby in all things approved and adopted. Section 2. The effective date of ETI's proposed rate increase, and the proposed tariffs related thereto, is hereby suspended for an additional ninety (90) days until May 4, 2010 in order to complete the review and investigation by City's experts. Section 3. The City is authorized to join with other municipalities as part of the Entergy Texas, Inc. Service Area Steering Committee with the understanding that the steering committee will provide direction and guidance to the lawyers who are representing said cities. Section 4. The City employs The Lawton Law Firm, P.C. to represent the City with regard to the proposed rate increase of ETI before local and state regulatory authorities and any court of law and authorizes counsel to employ such rate experts as are recommended by the Cities' Steering Committee. Section 5. The Steering Committee, shall review the invoices of the lawyers and rate experts for reasonableness before submitting the invoices to ETI for reimbursement. Section 6. City's legal representatives shall have the right to obtain additional information from ETI through the service of requests for information. Section 7. ETI shall reimburse the City, through the designated representative city of the Steering Committee, for the reasonable costs of attorneys and consultant and expenses related thereto, upon the presentation of invoices reviewed by the Steering Committee. Section 8. 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 9. This Ordinance shall become effective from and after its passage. I i PASSED AND APPROVED this 26th day of January, 2010. r Mayo ecky Ames - ATTEST: r� t.1Mp� Tina Broussard City Clerk �e' w ! t