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HomeMy WebLinkAboutORD 19-081ORDINANCE NO. 19-081 ORDINANCE OF THE CITY OF BEAUMONT, TEXAS AUTHORIZING THE SUSPENSION OF THE EFFECTIVE DATE FOR AN ADDITIONAL NINETY (90) DAYS BEYOND THE EFFECTIVE DATE PROPOSED BY CENTERPOINT IN CONNECTION WITH ITS STATEMENT OF INTENT TO INCREASE RATES FOR CENTERPOINT'S BEAUMONT/EAST TEXAS DIVISION, FILED ON NOVEMBER 14, 2019; AUTHORIZING THE HIRING OF LAWYERS AND RATE EXPERTS; AUTHORIZING THE CITY'S PARTICIPATION TO THE FULL EXTENT PERMITTED BY LAW AT THE RAILROAD 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 November 14, 2019, CenterPoint Energy Resources Corp. d/b/a CenterPoint Energy Entex and CenterPoint Energy Texas Gas ("CenterPoint" or "Company") filed a Statement of Intent with the City of Beaumont ("City") to increase gas rates in the Beaumont/East Texas Division Service Area by $6.816 million per year; and, WHEREAS, City has exclusive original jurisdiction over the rates, operations and services of a gas utility in areas in the municipality pursuant to Tex. Util. Code §103.001; and, WHEREAS, Gas Utility Regulatory Act § 103.021 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 gas utility under Gas Utility Regulatory Act § 103.022; and, WHEREAS, given the complexity of the proposed rate increase and the need to fully review the proposed rate adjustment it is necessary to suspend the effective date for implementing the proposed rates until at least February 12, 2020 in order to allow the City's rate experts; sufficient time to determine the merits of CenterPoint's proposed rates; and, WHEREAS, in order to maximize the efficient use of resources and expertise in reviewing, analyzing, and investigating CenterPoint's $6.816 million rate increase request, City's efforts will be coordinated with similarly situated municipalities in CenterPoint's Beaumont/East Texas Division Service Area; and, WHEREAS, the City will join with other 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: 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 CenterPoint's proposed rate increase, and the proposed tariffs related thereto, is hereby suspended for an additional ninety (90) days until February 12, 2020 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 CenterPoint Beaumont/East Texas Division 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 the proposed rate increase of CenterPoint before local and state regulatory authorities and any court of law and authorizes counsel to employ such rate experts as are recommended by the Steering Committee. Section 5. The Steering Committee, shall review the invoices of the lawyers and rate experts for reasonableness before submitting the invoices to CenterPoint for reimbursement. Section 6. City's legal representatives shall have the right to obtain additional information from CenterPoint through the service of requests for information, which shall be responded to within seven (7) calendar days of receipt of such requests for information. Section 7. CenterPoint shall reimburse the City, through the designated representative of the Steering Committee, for the reasonable costs of attorneys and consultant fees and 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 3rd day of December, 2019.