HomeMy WebLinkAboutORD 05-092 ORDINANCE NO. 05-092
AN ORDINANCE WHICH SHALL CONSTITUTE AN ORDER
BY THE CITY OF BEAUMONT, TEXAS ("CITY") TO
REQUIRE CENTERPOINT ENERGY ENTEX ("ENTEX") TO
CEASE AND DESIST FROM CHARGING ILLEGAL AND
UNLAWFUL RATES AND REQUIRING REFUNDS; TO
REQUIRE THE FILING OF A REPORT WITH REGARD TO
COSTS EXPENDED BY ENTEX IN CONNECTION WITH THE
APPEAL OF ORDINANCE NO. 05-068; MAKING FINDINGS
WITH REGARD TO THIS ORDER; FINDING AND
DETERMINING THAT THE MEETING AT WHICH THIS
ORDINANCE WAS PASSED WAS IN ACCORDANCE WITH
THE REQUIREMENTS OF THE TEXAS OPEN MEETINGS
ACT; AND DECLARING AN EFFECTIVE DATE.
WHEREAS, on or about June 30, 2005, CenterPoint Energy Entex("ENTEX")filed
with the City Secretary for the City of Beaumont ("City") a request to increase base rates;
and,
WHEREAS, ENTEX requested that base rates for the typical residential customer
be increased by 40.63% or approximately $5.00 per month and ENTEX requested that
service charges, like the charge to initiate service, be increased in the aggregate by
484.93%; and,
WHEREAS, ENTEX is required by law to publish notice of its proposed increase in
a newspaper of general circulation in Jefferson County, Texas; and,
WHEREAS, ENTEX was ordered by the City on more than one occasion to publish
notice in a manner consistent with Texas law; and,
WHEREAS, ENTEX has failed to comply with the lawful orders of the City and has
refused to publish notice in a manner that is consistent with Texas law.
WHEREAS, ENTEX may not put its proposed rate increase into effect without
causing notice, as required by Section 104.103(a)(1) of the Texas Utilities Code, to be
published in a newspaper of general circulation in Jefferson County, Texas; and,
WHEREAS, ENTEX unlawfully put its proposed rate increase into effect on or about
November 3, 2005; and,
WHEREAS, ENTEX should immediately stop charging any change in base rates, which
were implemented on or about November 3, 2005; and,
WHEREAS, ENTEX should refund to its customers any monies received resulting
from the implementation of the change in rates that occurred on or about November 3,
2005.
NOW, THEREFORE, BE IT ORDAINED BY THE
CITY OF BEAUMONT:
SECTION 1. FINDINGS
Finding No. 1: ENTEX is unlawfully and illegally charging base rates in excess of
its lawful rates.
Finding No. 2: ENTEX's rate request is not properly before the City Council and
the City may not make a final decision on ENTEX's rate request until ENTEX has published
notice consistent with Section 104.103(a)(1) of the Texas Utilities Code.
Finding No. 3: ENTEX has on more than one occasion failed to comply with the
orders of the City to publish notice in a manner, which is consistent with Section
104.103(a)(1) of the Texas Utilities Code.
Finding No. 4: There is no rate case in effect and no effective date for increasing
rates until public notice consistent with Section 104.103(a)(1) of the Texas Utilities Code
has been published.
Finding No. 5: While maintaining its position that the rate request was not properly
before the Council due to defects in publication, out of an abundance of caution, the City
suspended the effective date stated in Entex's rate request indefinitely due to the failure
to publish notice consistent with Texas law.
Finding No. 6: This order is not based upon any particular test year but is issued
due to the charging of illegal or unlawful rates by ENTEX.
Finding No. 7: ENTEX made a filing with the City on or about September 21, 2005,
which made some of the information provided earlier obsolete or inaccurate.
Finding No. 8: ENTEX has refused to answer any requests for information
(discovery) with regard to its September 21, 2005 filing.
SECTION 2. CEASE AND DESIST ORDER
ENTEX is hereby ordered to cease charging base rates that exceed the rates in
effect on November 2, 2005. This order is not a final decision on ENTEX's request to
increase rates, which were filed with the City on June 30, 2005. This order simply
prohibits, and orders the return of increased revenue resulting from, the increase in base
rates without complying with Section 104.103(a)(1)of the Texas Utilities Code. This order
does not constitute a decision on the merits of the June 30, 2005 filing of the Statement
of Intent with the City.
SECTION 3. REFUNDS
ENTEX is hereby ordered to return the increase in revenues resulting from the
unlawful increase in base rates that began on or about November 3, 2005. Refunds may
be implemented by way of credits on the customers' bills who have been overcharged.
Refunds shall begin no later than December 26, 2005.
SECTION 4. REPORT
ENTEX shall submit the report called for by Section 5 of Resolution No. 05-215 to
the City Manager no later than December 26, 2005.
SECTION 5. ENTEX RESPONSE REQUIRED
ENTEX is hereby ordered to advise the City in writing of its intent to comply with this
order within ten days of the effective date of this ordinance.
SECTION 6. EFFECTIVE DATE
This ordinance shall become effective upon passage.
SECTION 7. PASSED AT OPEN MEETING
That the meeting at which this Ordinance was passed was conducted in strict
compliance with the Texas Open Meetings Act (Texas Government Code Chapter 551).
SECTION 8. NOTICE TO ENTEX
A copy of this Ordinance shall be faxed to Mr. Chuck Harder, Executive Director of
Rates and Regulatory, CenterPoint Energy Entex at (713) 207-0046 within seventy-two
hours of the adoption of this Ordinance along with a copy by regular mail to Mr. Harder at
1111 Louisiana, Houston, Texas 77005.
PASSED BY THE CITY COUNCIL of the Cit7Be ont t his the 13th day of
December, 2005.
i U - Mayor Guy N. Goodson -
� w � X
ATTEST:
APPROVED AS TO FORM