HomeMy WebLinkAboutORD 99-079 ORDINANCE NO.
AN ORDINANCE REQUIRING ENTERGY GULF STATES TO
BOOK AND HOLD REVENUES FROM THE SALE OF
POWER FROM THE RIVER BEND NUCLEAR STATION
ATTRIBUTABLE TO THE 281 MW ACQUIRED FROM CAJUN
ELECTRIC COOPERATIVE IN A SUSPENSE ACCOUNT
PENDING FINAL DETERMINATION OF THE REGULATORY
TREATMENT OF THAT PORTION OF RIVER BEND.
WHEREAS, the City of Beaumont, Texas is a regulatory authority under Tex. Util.
Code §33.001, and has original jurisdiction over the rates, operations, and services of
Entergy Gulf States, Inc. (EGS) in the municipality; and,
WHEREAS, on February 1, 1999, the City of Beaumont, other Cities, EGS, and
other parties to EGS' rate case executed a settlement agreement which provided that the
regulatory treatment of the 30% share of River Bend acquired from Cajun Electric Power
Cooperative would be determined in the 2001 rate case; and,
WHEREAS, in May, 1999, the Texas Legislature enacted amendments to the Public
Utility Regulatory Act (PURA) which froze rates until January 1, 2002, thus eliminating the
EGS rate case contemplated in the settlement agreement of the parties in PUC Docket No.
20150, and the rate case required by the settlement agreement in the gulf States/Entergy
merger case, PUC Docket No. 11292; and,
WHEREAS, as a result of the legislative changes which eliminated the rate case
required by the Commission's Order in Docket No. 11292 and contemplated in Docket No.
20150, the Public Utility Commission of Texas ordered EGS to address the regulatory
treatment of the 30% of River Bend acquired from Cajun Electric Cooperative in its S.B.
7 implementation proceeding; and,
WHEREAS, EGS or an affiliated company withheld power generated at River Bend
attributable to the 30% share from its Texas retail customers during the blackouts July 23,
1999; and
WHEREAS, on July 23, 1999, EGS curtailed service to many firm distribution level
customers because Entergy had insufficient power to supply its Texas retail customers.
During such curtailments, power from the 30% of River Bend acquired from Cajun Electric
Cooperative was sold off the Entergy system; and,
WHEREAS, EGS is selling power generated at River Bend attributable to the 30%
share off system; and,
WHEREAS, the City Council, having considered the changes to the settlement
agreement, PURA, the Public Utility Commission of Texas' orders concerning River Bend,
EGS' service failures, and EGS' sale of power from the 30% of River Bend acquired from
Cajun Electric Cooperative off system, is of the opinion that the revenues from the sale of
power attributable to the 30% share of River Bend should be segregated and held in a
suspense account pending regulatory determination of the disposition.
NOW, THEREFORE, BE IT ORDAINED BY THE
CITY OF BEAUMONT
Section 1.
THAT EGS shall book and hold in a suspense account all revenues from the sale
of River Bend power attributable to the 30% share acquired from Cajun Electric
Cooperative pending regulatory determination of the appropriate regulatory treatment of
such power. Such accounting shall begin with the settlement of the various lawsuits
between EGS and Cajun Electric Cooperative in December, 1997 and shall include all
assets transferred to Entergy or EGS by Cajun at the price paid by Entergy or EGS for
such acquisition. The booking should also reflect the value of nuclear fuel acquired from
Cajun, settlement proceeds, return of funds from the court registry, decommissioning
funds, and revenues from the sale of power attributable to the 30% share of River Bend
since December, 1997. The booking of revenues shall be updated monthly.
Section 2.
That EGS shall provide the required accounting information and underlying support
in such detail and format, and with such frequency as Cities' consultants, DUCI, and
attorneys, Butler, Porter, Gay & Day, request.
Section 3.
THAT nothing contained in this ordinance shall be construed now or hereafter as
limiting or modifying in any manner, the right and power of the City under the law to
regulate the rates, operations, and services of EGS.
Section 4.
That if any section, subsection, sentence, clause or phrase of this ordinance, or the
application of same to a particular set of persons or circumstances should for any reason
be held to be invalid, such invalidity shall not affect the remaining portions of this
ordinance, and to such end the various portions and provisions of this ordinance are
declared to be severable.
Section 5.
That all ordinances or parts of ordinances in conflict herewith are repealed to the
extent of the conflict only.
PASSED BY THE CITY COUNCIL of the City of Beaumont on this the /
day ofC�� �� , 1999.
- Mayor -
ATTEST:
L
City Secretary