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HomeMy WebLinkAboutRES 05-135 RESOLUTION NO. 05-135 A RESOLUTION OF THE CITY COUNCIL OF BEAUMONT, TEXAS, AUTHORIZING PARTICIPATION WITH OTHER ENTERGY SERVICE AREA CITIES IN MATTERS BY ENTERGY AT THE PUBLIC UTILITY COMMISSION OF TEXAS IN 2005 WHEREAS, Entergy Gulf States' (EGSI) implementation of customer choice has been delayed due to lack of competition; lack of independent market structures and organizations in its service territory to implement fair competition; and because EGSI's ability to control the market in its region has not been evaluated; and, WHEREAS, changes to the Public Utility Regulatory Act addressing rates and rate proceedings will have a direct impact on EGSI and customer bills during the continued transition to competition; and, WHEREAS, EGSI is scheduled to file various proceedings at the Public Utility Commission in 2005 related to transition to competition expenditures; capacity cost surcharges; various fuel cost surcharges; and for approval of various market structures necessary for the implementation of fair competition; and, WHEREAS, EGSI is scheduled to file a fuel factor proceeding at the Public Utility Commission in September 2005, and may file other fuel proceedings during 2005 to reconcile fuel, to surcharge or refund fuel charges, and to change the fuel mechanism, along with various surcharge requests impacting base rates; 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; WHEREAS, Cities are entitled to reimbursement of their reasonable rate case expenses to participate in cases that are deemed rate proceedings pursuant to Tex. Util. Code §33.023. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: SECTION 1. The City of Beaumont shall participate with other Cities to intervene in EGSI's various rate filings related to the recovery of transition to competition costs, capacity costs and fuel cost proceedings, which include fuel reconciliation(s), fuel factor and fuel surcharge/refund cases filed at the Public Utility Commission in 2005 seeking appropriate regulatory scrutiny. The City of Beaumont shall participate with other Cities to intervene in proceedings at the Public Utility Commission filed in 2005 concerning EGSI's readiness for competition, market power, organizations and structures to assure fair competition to all customer classes, and rates and charges under competition or price caps. 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. SECTION 2. This resolution shall be effective from and after the date of its passage. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 7th day of June, 2005. $' MO, 410, r � � s U iase Cn - Mayor Guy N. Goodson - ,j 2�� TO . ATTEST: City Clerk APPROVED AS TO FORM: Cit tt me