HomeMy WebLinkAboutORD 16-013ORDINANCE NO. 16-013
A ORDINANCE OF THE CITY COUNCIL OF BEAUMONT, TEXAS,
AUTHORIZING PARTICIPATION WITH OTHER ENTERGY SERVICE
AREA CITIES IN MATTERS CONCERNING ENTERGY TEXAS, INC. AT
THE PUBLIC UTILITY COMMISSION OF TEXAS AND THE FEDERAL
ENERGY REGULATORY COMMISSION IN 2016.
WHEREAS, Entergy Texas, Inc.'s ("ETI") implementation of customer choice has
ceased due to Senate Bill 1492 and ETI will continue to be regulated under traditional
cost -of -service regulation; and,
WHEREAS, changes to the Public Utility Regulatory Act addressing rates and
rate proceedings will have a direct impact on ETI and customer bills during 2016 and
into the future; and,
WHEREAS, ETI is scheduled to litigate requests in various proceedings before
the Public Utility Commission of Texas, before municipalities, or before the Federal
Energy Regulatory Commission in 2016 related to ETI's continued integration with the
Midwest Independent System Operator ("MISO"), ETI's continuing efforts to exit the
Entergy System Agreement (which exit has now been approved by all retail regulatory
authorities and the FERC)to be effective August 31, 2016, various fuel cost refunds or
surcharges and reconciliations, capacity cost surcharges and reconciliations; and for
any type of base rate proceedings (such as a new base rate increase request,
transmission cost recovery rider, a distribution cost recovery rider, energy efficiency
cost recovery factor, hurricane restoration cost or offset true -ups, or a purchased power
capacity cost recovery rider) or cost adjustments; and,
WHEREAS, ETI is scheduled to file fuel factor proceedings at the Public Utility
Commission in February and August 2016, and file other fuel proceedings during 2016
to reconcile fuel, to refund or surcharge fuel charges, and to change the fuel
mechanism, along with various surcharge requests impacting rates; and,
WHEREAS, ETI is expected to file a proceeding for a rate change and fuel
change during 2016 to recover costs associated with new capacity purchases; and,
WHEREAS, ETI is scheduled to file a proceeding to recover costs incurred in
association with its Energy Efficiency Plan as well as reconcile past costs; and,
WHEREAS, Cities have the statutory right to set fair and reasonable rates for
both the Company and customers within Cities; and,
WHEREAS, Cities have exclusive original jurisdiction over rates, operations, and
services of an electric utility in areas in the municipality pursuant to Tex. Util. Code §
33.001; and,
WHEREAS, Cities have standing in each case before the Public Utility
Commission of Texas that relates to an electric utility providing service in the
municipality pursuant to Tex. Util. Code § 33.025, and standing before each Federal
Energy Regulatory Commission case in which the City may be affected pursuant to 18
C.F.R. § 385.214; and,
WHEREAS, Cities are entitled to reimbursement by the utility of their reasonable
rate case expenses to participate in cases that are deemed rate proceedings pursuant
to Tex. Util. Code § 33.023;
NOW, THEREFORE, BE IT ORDAINED BY THE
CITY COUNCIL OF THE CITY OF BEAUMONT THAT:
SECTION 1. The City of Beaumont shall participate with other Cities to intervene
in ETI's various rate filings related to the various fuel cost surcharges and
reconciliations, capacity cost surcharges and reconciliations, the allocation and refund
of rough production cost equalization payments, any interim or incremental surcharge
proceedings or surcharge adjustments, and for any base rate adjustment proceedings
or cost of service adjustments on file with the Public Utility Commission of Texas or with
municipalities in 2016 and seek appropriate regulatory scrutiny in any case on file at the
Federal Energy Regulatory Commission affecting the City and its residents.
The City of Beaumont shall participate with other Cities to intervene in fuel or fuel
related proceedings at the Public Utility Commission and the Federal Energy Regulatory
Commission on file in 2016 concerning ETI's rates charged to Texas customers.
All such actions shall be taken pursuant to the direction of the Cities' Steering
Committee. Cities' Steering Committee shall have authority to retain rate consultants
and lawyers. Cities' Steering Committee shall direct the actions of Cities'
representatives in the above proceedings. The Steering Committee is directed to obtain
reimbursement from ETI of all reasonable expenses associated with participation in said
proceedings.
SECTION 2. This Ordinance shall be effective from and after the date of its
passage.
PASSED BY THE CITY COUNCIL of the City of Beaumont this the 15th day of
March, 2016.
-(Ior Beck Ames -
�l i� �1 ��, i i