HomeMy WebLinkAboutORD 15-023ORDINANCE NO. 15-023
ORDINANCE OF THE CITY OF BEAUMONT, TEXAS, AUTHORIZING
THE SUSPENSION OF THE EFFECTIVE DATE FOR AN ADDITIONAL
NINETY (90) DAYS BEYOND THE JULY 17, 2015, 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," FILED
ON JUNE 12, 2015; 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 June 12, 2015, Entergy Texas, Inc. ("Entergy"), filed a
Statement of Intent with the City to increase electric rates and implement tariff riders
and surcharges in the Entergy Service `Area; 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 base rate and riders, it is necessary to suspend the effective
date for implementing the proposed rates until at least October 15, 2015, in order to
allow the City's rate experts sufficient time to determine the merits of Entergy's
proposed rates; and,
WHEREAS, in order to maximize the efficient use of resources and expertise in
reviewing, analyzing, and investigating Entergy's $75.3 million base rate increase
request and Entergy's proposed surcharges and riders, the 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 Entergy 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;
NOW, THEREFORE, BE IT ORDAINED BY THE
CITY COUNCIL OF THE CITY OF BEAUMONT 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 Entergy's proposed rate increase, and the
proposed tariffs related thereto, is hereby suspended for an additional ninety (90) days
until October 15, 2015, 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 Entergy's proposed rate increase 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.
Section 6. City's legal representatives shall have the right to obtain additional
information from Entergy through the service of requests for information.
Section 7. Entergy shall reimburse the City, for the reasonable costs of
attorney and consultant 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 BY THE CITY COUNCIL of the City of Beaumont this the 14th day of
July, 2015.
ATT ST: "WWMW
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