HomeMy WebLinkAboutORD 12-043 ORDINANCE NO. 12-043
ORDINANCE OF THE CITY OF BEAUMONT, TEXAS AUTHORIZING THE
SUSPENSION OF THE EFFECTIVE DATE FOR AN ADDITIONAL NINETY
(90) DAYS BEYOND THE AUGUST 6, 2012, EFFECTIVE DATE PROPOSED
BY CENTERPOINT IN CONNECTION WITH ITS RATE INCREASE
APPLICATION ENTITLED "STATEMENT OF INTENT TO INCREASE
RATES FOR CENTERPOINT'S BEAUMONT/EAST TEXAS DIVISION,"
FILED ON JULY 2, 2012; AUTHORIZING THE HIRING OF LAWYERS AND
RATE EXPERTS; AUTHORIZING THE CITY'S PARTICIPATION TO THE
FULL EXTENT PERMITTED BY LAW AT THE RAILROAD 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 July 2, 2012 CenterPoint Energy Resources Corp. d/b/a
CenterPoint Energy Entex and CenterPoint Energy Texas Gas ("CenterPoint" or "Company")
filed a Statement of Intent with the City of Beaumont ("City") to increase gas rates in the
Beaumont/East Texas Division Service Area by$8.6 million per year; and
WHEREAS, City has exclusive original jurisdiction over the rates, operations and
services of a gas utility in areas in the municipality pursuant to Tex. Util. Code §103.001; and
WHEREAS, Gas Utility Regulatory Act §103.021 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 gas utility under Gas Utility Regulatory Act § 103.022;
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 November 4, 2012, in order to allow the City's rate
experts sufficient time to determine the merits of CenterPoint's proposed rates; and
WHEREAS, in order to maximize the efficient use of resources and expertise in
reviewing, analyzing, and investigating CenterPoint's $8.6 million rate increase request, City's
efforts will be coordinated with similarly situated municipalities in CenterPoint's Beaumont/East
Texas Division Service Area; and
WHEREAS, the City will join with other 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 RESOLVED 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 ordinance
are hereby in all things approved and adopted.
Section 2. The effective date of CenterPoint's proposed rate increase, and the
proposed tariffs related thereto, is hereby suspended for an additional ninety (90) days until
November 4,2012, 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
CenterPoint Beaumont/East Texas Division 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 CenterPoint before local and state regulatory authorities
I
and any court of law and authorizes counsel to employ such rate experts as are recommended by
the Steering Committee.
Section 5. The Steering Committee, shall review the invoices of the lawyers and rate
experts for reasonableness before submitting the invoices to CenterPoint for reimbursement.
Section 6. City's legal representatives shall have the right to obtain additional
information from CenterPoint through the service of requests for information, which shall be
responded to within seven(7) calendar days of receipt of such requests for information.
Section 7. CenterPoint shall reimburse the City, through the designated
representative of the Steering Committee, for the reasonable costs of attorneys and consultant
fees 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.
PASSED AND APPROVED this 7A day of , 2012.
AYOR vlcY AMES -
AT EST:
CITY CLERK
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