HomeMy WebLinkAboutORD 94-49 ORDINANCE NO. q'l•. 0
ENTITLED AN ORDINANCE OF THE CITY OF BEAUMONT,
TEXAS, FINDING AFTER REASONABLE NOTICE AND
HEARING, THAT THE EXISTING RATES OF GULF STATES
UTILITIES COMPANYARE UNREASONABLE; DETERMINING
JUST AND REASONABLE RATES TO BE OBSERVED AND IN
FORCE WITHIN THE CITY; ORDERING RATE REDUCTIONS
AND RATE REFUNDS; ORDERING THAT THIS ORDINANCE
BE SERVED ON GULF STATES UTILITIES COMPANY;
PRESERVING REGULATORY RIGHTS OF THE CITY;
PROVIDING FOR REPEAL OF CONFLICTING ORDINANCES.
WHEREAS, the City of Beaumont ("City") is a regulatory authority under the Public
Utility Regulatory Act and has original jurisdiction over the electric rates charged by Gulf
States Utilities Company ("GSU") within the city limits; and,
WHEREAS, the City, acting as a regulatory authority, initiated an investigation into
the electric utility rates charged by GSU; and,
WHEREAS, GSU has previously agreed that any rate reduction stemming from this
§42 proceeding will be effective from the date of initiation of the §42 complaint, in this
case March 31, 1994; and,
WHEREAS, the City, after reasonable notice to GSU, held a public hearing
pursuant to §42 of the Public Utility Regulatory Act and considered the filing, materials
and arguments submitted by GSU; and,
WHEREAS, the City has found that the existing electric utility rates of GSU for
service within the City are unreasonable; and,
WHEREAS, the City has determined that the rates of GSU should be decreased
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and electric rate refunds provided;
NOW, THEREFORE, BE IT ORDAINED BY THE
CITY COUNCIL OF THE CITY OF BEAUMONT:
Section 1.
THAT the existing rates of GSU are hereby found, after reasonable notice and hearing,
to be unreasonable and excessive and shall be decreased to reflect the reductions
hereinafter ordered. The rates resulting from such reductions and refunds are hereby
determined to be the just and reasonable rates to be observed and in force within the
City.
Section 2.
It is hereby ordered that the base rates of GSU for electric power and energy sold
within the City be decreased by the amount of $45.9 million per annum on a Texas retail
jurisdiction basis, based on a test-year ending December 31, 1993. Such base rate
decrease shall be implemented on an across-the-board basis so that the base rates for
all customer classes and each component thereof are reduced by the same percentage
amount.
Section 3.
GSU shall file with the City, no later than ten (10) days from the passage of this
rate ordinance, a revised Schedule of Rates and Tariffs, together with rate design
workpapers and supporting data as requested, setting forth those rates, tariffs and
charges based upon such decreases and refunds as prescribed herein. GSU is ordered
to calculate for review by the City or its representative, a refund for the period March 31,
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1994 to the date of implementation of the rates ordered herein. The refund is to be
calculated based upon energy consumed on and after March 31, 1994.
Such Schedule of Rates and Tariffs may be modified or amended by the City to
comply with the provisions hereof within ten (10) days from the date of filing with the City,
otherwise the same shall be considered approved as filed.
Section 4.
The rate reduction ordered herein shall be effective from March 31, 1994.
Paragraph 11 of GSU's Stipulation and Agreement approved by the Public Utility
Commission of Texas in Docket No. 11292,Application of Entergy Corporation and GSU
for Sale, Transfer or Merger, provides that rates adopted pursuant to a 542 complaint
shall be effective from the date of the initiation of that X42 complaint. GSU is ordered to
refund the difference between rates actually charged as of March 31, 1994 and those
rates herein ordered. All refunds will be based on energy consumed within each class
and will be provided in the form of a one-time bill credit.
Section 5.
This rate ordinance shall be served on GSU by First Class U.S. Mail to Cecil
Johnson, Vice President-Legal Services, GSU, P.O. Box 2951, Beaumont, Texas 77704.
Section 6.
Nothing in this Ordinance contained 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 and charges of GSU.
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Section 7.
All Ordinances, Resolutions, or parts thereof, in conflict herewith are repealed to
the extent of such conflict.
PASSED BY THE CITY COUNCIL of the City of Beaumont this the day
of - .` , 1994.
- Mayor -
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