HomeMy WebLinkAboutORD 15-043ORDINANCE NO. 15-043
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 4, 2015; SETTING JUST AND REASONABLE
RATES FOR ENTERGY TEXAS, INC. FOR SERVICE WITHIN
THE MUNICIPAL LIMITS; FINDING THAT THE IMEETING
COMPLIES WITH THE OPEN MEETINGS ACT; MAKING OTHER
FINDINGS.
WHEREAS, on or about September 4, 2015 Entergy Texas, Inc. ("Entergy") filed
an Application for Authority to Amend the existing Distribution Cost j Recovery Factor
i
with the City to increase electric rates by implementing new riders pursuant to Public
Utility Regulatory Act ("PURA") Section 36.210; and,
WHEREAS, the proposed Distribution Cost Recovery Factor rates proposed by
Entergy Texas, Inc. would increase customer rates in the Entergy Service Area by $6.5
million per year above the current Distribution Cost Recovery Factor surcharge; and,
I
WHEREAS, the jurisdictional deadline for the City to act in this rate matter is
November 3, 2015; and,
WHEREAS, the expert utility rate consultants retained to review the Company's
Distribution Cost Recovery Factor rates on behalf of the City have made preliminary
I
findings that Entergy has incorrectly calculated the proposed Distribution Cost Recovery
i
Factor and overstated the claimed need for the rate increase requested. The
consultants' analyses support reductions to the Entergy request; and,
WHEREAS, the rate experts retained for the rate review have concluded that
Entergy's rate filing request is not supported; and,
i
WHEREAS, Entergy has failed to properly support and justify the rate class
increase amounts for Entergy's proposed class allocation of certain distribution costs;
and,
WHEREAS, the statutory deadline to act on Entergy's Distribution Cost Recovery
Factor rate increase request is November 3, 2015;
NOW, THEREFORE, BE IT ORDAINED
BY THE CITY COUNCIL OF THE CITY OF BEAUMONT:!
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.
i
PASSED BY THE CITY COUNCIL of the City of Beaumont this the 13th day of October,
2015. �.�J�uMO�� �
U Mayor Beck Ames -
�W
ATTEST:
..i mnhwrnp