HomeMy WebLinkAboutRES 08-074 RESOLUTION NO. 08-074
A RESOLUTION OF THE CITY COUNCIL OF BEAUMONT,
TEXAS, AUTHORIZING PARTICIPATION WITH OTHER
ENTERGY SERVICE AREA CITIES IN MATTERS
CONCERNING ENTERGY TEXAS, INC. AT THE PUBLIC
UTILITY COMMISSION OF TEXAS IN 2008.
WHEREAS, Entergy Texas, Inc.'s (ETI) 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 ETI's ability
to control the market in its region has not been evaluated, ETI will continue to be regulated;
and,
WHEREAS, changes to the Public Utility Regulatory Act addressing rates and rate
proceedings will have a direct impact on ETI and customer bills during the continued
transition to competition; and,
WHEREAS, ETI is scheduled to litigate its request in various proceedings at the
Public Utility Commission and Federal Energy Regulatory Commission in 2008 related to
various fuel cost surcharges and reconciliation,capacity cost surcharges and reconciliation;
for approval of various market structures necessary for the implementation of fair
competition, and for any type of base rate adjustment proceedings; and,
WHEREAS, ETI is scheduled to file fuel factor proceedings at the Public Utility
Commission in March and September, 2008, and file other fuel proceedings during 2008
to reconcile fuel, to surcharge or refund fuel charges, and to change the fuel mechanism
along with various surcharge requests impacting rates; and,
WHEREAS, ETI has filed a proceeding to determine the proper Texas allocation of
rough production cost equalization payments from Entergy Arkansas; and,
WHEREAS, Cities have the statutory right 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; and,
WHEREAS, Cities are entitled to reimbursement by the utility 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.
THAT the City of Beaumont shall participate with other Cities to intervene in ETI's
various rate filings related to the various fuel cost surcharges and reconciliation, capacity
cost surcharges and reconciliation; the allocation of rough production cost allocation
payments, for approval of various market structures necessary for the implementation of
fair competition, and for any base rate adjustment proceedings on file at the Public Utility
Commission and the Federal Energy Regulatory Commission in 2008 seeking appropriate
regulatory scrutiny.
THAT the City of Beaumont shall participate with other Cities to intervene in
proceedings at the Public Utility Commission on file in 2008 concerning ETI's readiness for
competition, market power, organizations and structures to assure fair competition to all
customer classes.
That the City of Beaumont shall participate with other Cities to intervene in
proceedings at the Public Utility Commission on file in 2008 concerning ETI's base rate
charge to customers.
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 ETI
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 18th day of
March, 2008.
AW - Ma r B cky Ames -
JA TEST:
City Clerk
APPROVED AS TO FORM:
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