HomeMy WebLinkAboutORD 12-078 ORDINANCE NO. 12-078
AN ORDINANCE BY THE CITY OF BEAUMONT, TEXAS ("CITY")
DENYING THE RATES OF CENTERPOINT ENERGY RESOURCES
CORP. FILED IN CENTERPOINT ENERGY RESOURCES CORP.'S
RATE PROCEEDING INITIATED ON JULY 2, 2012; 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 to increase gas rates in the service
area of the Beaumont/East Texas Division of CenterPoint by $8.6 million per year; and,
WHEREAS, the City of Beaumont suspended the effective date of CenterPoint's
rates within its jurisdictional limits until at least November 4, 2012 and hired the Lawton
Law Firm, P.C. to review the Company's rate change request and proposed tariffs; and,
WHEREAS, CenterPoint requested an overall base rate increase of $8.6 million
dollars, consisting of a rate increase to residential customers of $8.2 million, and a rate
increase of$0.9 million to small general service customers, and a rate decrease of($0.5)
million to large volume general service customers; and,
WHEREAS, CenterPoint's rate filing request proposes to increase the residential
customer charge from an approximate charge of$12.25 per month to $20.25 per month.
Overall, revenues from all customer classes proposed to be charged directly to customers
through the customer charges make up 89.48% of the Company's total requested
revenues--$48,271,035 million out of the Company's total requested $53,943,521 million
revenue requirement; and,
WHEREAS, CenterPoint's rate filing request includes unreasonable rate increases
for recovery of employee expense and benefits, various tax expense and rate base issues,
injuries and damages expense, other various expense and investment, unsubstantiated
costs allocated from affiliate service companies, and an excessive rate of return and profit
for shareholders;
NOW THEREFORE, BE IT ORDAINED BY THE
CITY COUNCIL OF THE CITY OF BEAUMONT:
THAT the statements and findings set out in the preamble to this resolution are hereby, in
all things, approved and adopted; and,
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 City of Beaumont hereby denies the rate change and proposed
tariff revisions requested in CenterPoint's Statement of Intent.
Section 3. 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 4. This ordinance shall become effective from and after its passage.
PASSED BY THE CITY COUNCIL of the City of Beaumont this the 16th day of
October, 2012.
yor Becky Ames -
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