HomeMy WebLinkAboutRES 96-125 RESOLUTION NO. �'/ (,-'r
BE IT RESOLVED BY THE CITY COUNCIL
OF THE CITY OF BEAUMONT:
THAT the City of Beaumont hereby accepts the offer of Entergy set out in Exhibit
"A" attached hereto and made a part hereof for all purposes.
- Mayor -
Fossil Operations
r_ ENTERGY P.O. Box
Beaumontt,,T T
X 77704
Tel 409 827 5444
Fax 409 827 5438
Frank F.Gallaher
Executive Vice President
Entergy Services,Inc
May 7, 1996
Mr. Harry P. Wright
Attorney-At-Law
1221 Dallas
Port Neches, Texas 176 1
Dear Mr. Wright:
Entergy Gulf States, Inc. (Entergy) has been advised that several Cities have
engaged consultants to review the reasonableness of Entergy's rates and that such
review has determined that our present rates are excessive. Entergy acknowledges
that Cities have an obligation as regulatory authorities to take appropriate action
under §2.211 of PURA if they conclude our rates are unreasonable. Entergy further
understands that it is the Cities' position that the stipulation in Docket 11292 before
the PUC (the "Merger Docket") provides that final rates shall be effective from the '
date of initiation of such inquiry.
The Cities' Steering Committee has recommended that a rate inquiry into the
reasonableness of Entergy's rates be initiated and some Cities have initiated such an
inquiry. However, the stipulation in Docket 11292 requires drat-Entergy file a rate
proceeding in November 1996 utilizing a test year ending June 30, 1996.
Accordingly, Entergy wishes to avoid the time and expense of multiple filings and
proceedings.
Therefore, in consideration of your City foregoing pursuit of such rate
inquiry, Entergy files this formal stipulation and agrees as follows:
1. Any overall Texas retail base rate reduction finally ordered in such
November, 1996 filing by the applicable local regulatory authorities, or in
EXHIBIT "A"
the event of an appeal, the Public Utility Commission ("Final Order")
shall be retroactive throughout its Texas retail system to June 1, 1996.
However, no base rate increase, either overall Texas retail or to any class
or rate classification, shall be retroactive. In no case shall any rate within
your City exceed the same rate elsewhere within Entergy's Texas retail
system for such retroactive period.
2. Any such overall base rate decrease for the period June 1, 1996 through
the effective date of new rates set in the final order shall be returned to
customers either through refunds or bill credits to be determined in the
final order and will earn interest -- for the period starting June 1, 1996 and
ending with the completion of the refunds or bill credits to customers -- at
Entergy's authorized overall rate of return established in the final order.
3. Any refunds or credits will be returned to base rate customer classes, and
then to rate classifications within those base rate customer classes, based
on (1) the current rate design for base rates actually in place during the
period from June 1, 1996 and prior to the effective date of new rates set in
the Final Order and (2) the relative base rate revenue collected from each
of the customer classes and rate classifications during that period.
4. Mutually agrees to support and comply with all provisions of this
stipulation filed with the local regulatory authorities before such
authorities, the Public Utility Commission and the Courts. Further, for
purposes of such November, 1996 proceeding only, Entergy waives all
objections to the setting of an effective date prior to final order, all
objections to retroactive implementation of any rate reduction to June 1,
1996, and right to retroactive implementation of any rate increase or
recovery thereof through surcharge or otherwise arising out of the
November 1996 filing, any right to the filing of a test year other than the
one indicated in the merger docket stipulation, all objections to the
requirement of payment of interest on refunds or credits, or, without
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limitation by enumeration of the foregoing, any right inconsistent with this
stipulation.
Sincerely,
Frank F. Gallaher
Entergy Gulf States, Inc.
FFG/
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