HomeMy WebLinkAboutORD 17-003ORDINANCE NO. 17-003
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 2017.
WHEREAS, Entergy Texas, Inc.'s ("ETI") implementation of customer choice has
ceased due to Tex. S.B. 1492, 81St Leg. (2009) 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 2017 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 2017 related to ETI's continued integration with the
Midwest Independent System Operator ("MISO"), ETI's exit from the Entergy System
Agreement (effective August 31, 2016), various fuel cost refunds or surcharges and
reconciliations, and for any type of base rate proceedings or cost adjustments, such as
a new base rate increase request, transmission cost recovery rider, a distribution cost
recovery rider, energy efficiency cost recovery factor, or hurricane restoration cost or
offset true -ups; and,
WHEREAS, ETI is scheduled to file fuel factor proceedings at the Public Utility
Commission in February and August 2017, and to file other fuel proceedings to refund
or surcharge fuel charges; 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 the statements and findings set out in the preamble to this ordinance are hereby,
in all things, approved and adopted; and,
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, 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
2017 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 2017 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 24th day of
January, 2017
Secretary
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APPROVED TOFORM:
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