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HomeMy WebLinkAboutRES 06-123 RESOLUTION NO. 06-123 A RESOLUTION BY THE CITY OF BEAUMONT, TEXAS ("CITY") TO ADOPT A SETTLEMENT BETWEEN THE CITY AND CENTERPOINT ENERGY ENTEX ("CENTERPOINT") WITH REGARD TO CENTERPOINT'S STATEMENT OF INTENT TO INCREASE RATES WHICH WAS FILED ON JUNE 30, 2005 AND LATER UPDATED; DETERMINING THATTHIS RESOLUTION WAS PASSED IN ACCORDANCE WITH THE REQUIREMENTS OF THE TEXAS OPEN MEETINGS ACT; AND DECLARING AN EFFECTIVE DATE WHEREAS, on June 30, 2005, CenterPoint filed a Statement of Intent to Increase Rates with the City which it later updated with a four volume filing; and, WHEREAS CenterPoint r implemented its Statement of Intent to in t p cease rates es on November 3, 2005; and, WHEREAS, the City contested the legality of CenterPoint's implementation of its Statement of Intent to Increase Rates; and, WHEREAS, the City ordered CenterPoint to cease and desist the charging of the higher rates; and, WHEREAS, CenterPoint appealed the City's orderto cease and desist charging the higher rates to the Railroad Commission of Texas; and, WHEREAS,CenterPoint appealed tothe Railroad Commission similarorders by20 cities that comprise, along with the City of Beaumont, the Alliance of CenterPoint Municipalities ("ACM"); and, WHEREAS,the litigation involving the ACM Cities and CenterPoint overthe legality of CenterPoint's rate increase could continue at the Railroad Commission and through the Texas district and appellate courts for up to four years; and, WHEREAS, the outcome of the litigation between CenterPoint and the ACM cities over the legality of CenterPoint's rate increase could not be predicted with complete accuracy; and, WHEREAS,the Settlement requires that CenterPoint provide detailed and complete notice in a local newspaper of any proposed increase in base rates; and, WHEREAS, the Settlement prohibits any possibility of an increase in 9 as rates for the next three years due to changes in costs for non-fuel related expenditures, including any expenditures for additional pipelines or the relocation or replacement of pipeline facilities; and, WHEREAS, the Settlement provides for a nine dollar a year reduction in the customer charge for residential customers; and, WHEREAS, the Settlement provides that after the three-year rate freeze expires, CenterPoint will not file for an increase in base rates in the unincorporated areas of the Railroad Commission before it files with the City for an increase in base rates; and, WHEREAS, the Settlement provides that legal and/or consultant expenses of the ACM Cities, up to $230,000, will be borne by CenterPoint's shareholders, not its ratepayers; and, WHEREAS, the Settlement provides that CenterPoint's rate case expenses before the ACM Cities or at the Railroad Commission related to its efforts to implement its Statement of Intent to increase rates will be borne by CenterPoint's shareholders, not its ratepayers; and, WHEREAS, the Settlement provides that the ACM Cities will be paid the total of $414,000 to settle all other outstanding claims against CenterPoint, which money will be distributed to the ACM Cities to benefit the public as determined by the respective ACM City Councils; and, WHEREAS, the Settlement as a whole is in the public interest. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: SECTION 1. The statements set forth in the preamble are adopted as statements of fact. SECTION 2. The City Council finds that the Settlement Agreement, including the attached exhibits , is in the public interest and is hereby adopted in all respects. SECTION 3. The City Council finds that to the extent that any ordinances or resolutions previously adopted by the Council are inconsistent with the Settlement,they are repealed. SECTION 4. The meeting at which this resolution was approved was in all things conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551. SECTION 5. This resolution shall become effective from and after its passage. PASSED BY THE CITY COUNCIL of the City of Beaum t this the 25th day of April, 2006. l/l Mayor Guy N. Goodson - ATTEST: 1 UJ ' City Clerk APPROVED AS TO FORM City A rn i