HomeMy WebLinkAboutORD 18-008ORDINANCE NO. 18-008
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 IN 2018;
AUTHORIZING THE HIRING OF LAWYERS AND RATE EXPERTS; AND
AUTHORIZING THE CITY'S PARTICIPATION TO THE FULL EXTENT
PERMITTED BY LAW AT THE PUBLIC UTILITY COMMISSION OF
TEXAS.
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 2018 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 2018 related to ETI's expected rate increase request,
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 rate proceedings or
cost adjustments, such as a 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 expected to file a rate increase proceeding at the City and
before the Public Utility Commission in the second quarter of 2018; and,
WHEREAS, ETI is scheduled to file fuel factor proceedings at the Public Utility
Commission in February and August 2018, 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,
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
2018 and seek appropriate regulatory scrutiny in any case on file at the Federal Energy
Regulatory Commission affecting the City and its residents.
SECTION 2. The City of Beaumont employs the Lawton Law Firm P.C. to
represent the City with regard to the ETI rate matters before local and Public Utility
Commission of Texas and any court of law and authorizes counsel to employ rate
experts as are recommended by the Cities' Steering Committee to intervene in fuel or
rate related proceedings at the Public Utility Commission concerning ETI's rates
charged to Texas customers.
SECTION 3. 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 4. This Ordinance shall be effective from and after the date of its
passage.
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.
PASSED BY THE CITY COUNCIL of the City of Beaumont this the 27th day of
February, 2018.
ATTEST:
APPROVED AS TO FORM:
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