HomeMy WebLinkAboutORD 14-058ORDINANCE NO. 14-058
AN ORDINANCE BY THE CITY OF BEAUMONT, TEXAS
( "CITY ") DENYING THE DISTRIBUTION COST RECOVERY
FACTOR RATE INCREASE REQUEST OF ENTERGY TEXAS,
INC. FILED ON SEPTEMBER 18, 2014; SETTING JUST AND
REASONABLE RATES FOR ENTERGY TEXAS, INC. FOR
SERVICE WITHIN THE MUNICIPAL LIMITS; FINDING
THAT THE MEETING COMPLIES WITH THE OPEN
MEETINGS ACT; MAKING OTHER FINDINGS.
WHEREAS, on or about September 18, 2014 Entergy Texas, Inc. ( "Entergy ")
filed an Application for Authority to Implement a Distribution Cost Recovery Factor with
the City to increase electric rates by implementing new riders pursuant to Public Utility
Regulatory Act (` PURA ") Section 36.210;
WHEREAS, the proposed Distribution Cost Recovery Factor rates proposed by
Entergy Texas, Inc. would increase customer rates in the Entergy Service .Area by
$6,980,180 per year,
WHEREAS, Entergy the jurisdictional deadline for the City to act in this rate
matter is November 17, 2014;
WHEREAS, the expert utility rate consultants retained to review the Company's
Distribution Cost Recovery Factor rates on behalf of the City have issued a preliminary
report and concluded that Entergy has incorrectly calculated the proposed Distribution
Cost Recovery Factor and substantially overstated the claimed need for the rate increase
requested. The consultants' analyses support substantial reductions to the Entergy
request.
WHEREAS, the rate experts retained for the rate review have concluded that
Entergy's rate filing request is unsupported;
WHEREAS, Entergy has failed to properly support and justify the rate class
increase amounts for Entergy's proposed class allocation of certain distribution costs;
WHEREAS, Entergy has failed to justify Entergy's proposed rates included in
lighting service;
WHEREAS, the statutory deadline to act on Entergy's Distribution Cost
Recovery Factor rate increase request is November 17, 2014;
NOW, THEREFORE, BE IT ORDAINED BY THE
CITY COUNCIL OF THE CITY OF BEAUMONT, TEXAS:
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 Entergy Distribution Cost
Recovery Factor rate increase.
Section 3. Entergy's Distribution Cost Recovery Factor rate increase
application on file with the City is denied in total.
Section 4. 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 5. This ordinance shall become effective from and after its passage.
PASSED BY THE CITY COUNCIL of the City of Beaumont this the 28`x' day of
October, 2014
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