HomeMy WebLinkAboutRES 01-145 RESOLUTION NO. 01-145
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
BEAUMONT,TEXAS,AUTHORIZING PARTICIPATION WITH OTHER ENTERGY
SERVICE AREA CITIES IN MATTERS BY ENTERGY AT THE PUBLIC UTILITY
COMMISSION OF TEXAS IN 2001.
WHEREAS, Entergy Gulf States (EGSI) has filed a petition with the Public
Utility Commission of Texas to reconcile $1,533,473,401 in fuel and purchased
power costs for the prior period, March 1, 1999 through August 31, 2000. EGSI's
petition requests that it be exempted from compliance with Tex. Util. Code §36.058
governing purchases from affiliates so that it may charge ratepayers an amount
greater than cost for the purchase of power generated at River Bend Nuclear
Generating Station attributed to 30% of the plant reacquired from Cajun Electric
Cooperative. EGSI's petition also seeks to recover$17 million from customers for
failed nuclear fuel written off by the company and not used to generate electricity.
EGSI also seeks to recover extraordinary fuel prices paid to third parties during the
summer months in 1999 and 2000, including during the black-outs experienced on
the system July 23, 1999; and,
WHEREAS, EGSI is scheduled to file a fuel factor proceeding at the
Commission in July, 2001 to set the fuel factor to be in effect beginning January I,
2002 at the commencement of"'competition". The fuel factor set in that proceeding
will impact the price to beat protection for customers pursuant to Tex. Util. Code
§39.202; and,
WHEREAS, EGSI may file a petition in September, 2001 to surcharge
customers additional fuel costs,without review of the reasonableness thereof. Such
petition may implicitly seek to shift costs among classes; and,
WHEREAS, EGSI may file a petition for another fuel reconciliation for the
period beginning September 1, 2000 to some date in 2001; and,
WHEREAS, Cities have a duty to set fair and reasonable rates for both the
Company and ratepayers within Cities; and,
WHEREAS, Cities have 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 of their reasonable rate
case expenses to participate in the cases enumerated in this resolution pursuant
to Tex. Util. Code §33.023.
NOW, THEREFORE, BE IT RESOLVED BY THE
CITY COUNCIL OF THE CITY OF BEAUMONT:
THAT the City of Beaumont shall participate with other Cities to intervene in the fuel
reconciliation(s), fuel factor and fuel surcharge cases filed seeking appropriate
regulatory scrutiny and the exercise of Cities' original jurisdiction. 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 EGSI of all reasonable expenses associated with participation in said
proceedings.
PASSED BY THE CITY COUNCIL of the City of Beaumont this the 12th day
of June, 2001.
- Mayor-