HomeMy WebLinkAboutORD 23-090ORDINANCE NO, 23-090
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 IN THE TEXAS DIVISION, FILED ON
OCTOBER 30, 2023; AUTHORIZING THE HIRING OF LAWYERS AND RATE EXPERTS;
AUTHORIZING THE CITY' S PARTICIPATION TO THE DULL 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 October 30, 2023, 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 its
Houston, Texas Coast, South Texas, and Beaumont/East Texas Division Service Areas by $37.4
million per year, effective December 4, 2023; and,
WHEREAS, CenterPoint's statement of intent includes a request to consolidate the
Houston, Texas Coast, South Texas, and Beaumont/East Texas Divisions into a single Texas
Division; and,
WHEREAS, City has exclusive original jurisdiction over the rates, operations and
services of a gas utility in areas in the municipality pursuant to Texas Utilities Code § 103.001;
and,
WHEREAS, Texas Utilities Code § 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 persoihnel 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 Texas Utilities Code § 103.022; and,
WHEREAS, Texas Utilities Code § 104.107(a)(1) authorizes a local regulatory authority
to suspend a utility's proposed rate change for not longer than 90 days after the date the rate
change would otherwise be effective; 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 March 3, 2024, to allow the City's rate experts sufficient
time to determine the merits of CenterPoint's proposed rates; and,
WHEREAS, to maximize the efficient use of resources and expertise in reviewing,
analyzing, and investigating CenterPoint's $37.4 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, TEXAS, THAT:
That the statement and findings set out in the preamble to this ordinance are hereby in all things
approved and adopted.
Section 1.
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 March 3, 2024, in order to
complete the review and investigation by City's experts.
Section 2,
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 3.
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.
C'arlsnn d
The Steering Committee shall review the invoices of the lawyers and rate experts for
reasonableness before submitting the invoices to CenterPoint for reimbursement.
Section S.
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.
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.
The mecting at which this ordinance was approved was in all things conducted in strict
compliance with the Texas Open Meetings Act, Texas Govertuilent Code, Chapter 551.
This ordinance shall become effective from and after its passage.
PASSED BY THE CITY
November, 2023.
ATTEST:
Tina Broussard, City Cleric
COUNCIL of the City of Beaumont this the 21st day of
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