HomeMy WebLinkAboutORD 09-003 ORDINANCE NO. 09-003
ENTITLED AN ORDINANCE BY THE CITY OF BEAUMONT,
TEXAS, ("CITY") APPROVING THE RATES OF ENTERGY
TEXAS, INC.,CONTAINED IN THE STATEMENT OF INTENT
TO CHANGE RATES ("STATEMENT OF INTENT") FILED IN
THE CITY ON DECEMBER 19, 2008; APPROVING AN
EARLY EFFECTIVE DATE OF THE RATE CHANGE;
FINDING THATTHE MEETING COMPLIES WITH THE OPEN
MEETINGS ACT; MAKING OTHER FINDINGS AND
PROVISIONS RELATED TO THE SUBJECT; AND
DECLARING AN EFFECTIVE DATE.
WHEREAS, on or about September 26, 2007, Entergy Texas, Inc. ("ETI") filed a
Statement of Intent with the City to increase electric rates and charges in the ETI Service
Area by$107.5 million per year in addition to an expected $5 million annual increase to its
Miscellaneous Service Schedule charges resulting in about a$112 million annual increase
to customers; and
WHEREAS, the City suspended the effective date of ETI's rates within its
jurisdictional limits until at least September 29, 2008; and
WHEREAS, on August 19, 2008, ETI agreed to further extend the effective date of
rates; and
WHEREAS, the City intervened at the Public Utility Commission of Texas ("PUC")
in PUC Docket No. 34800 with other cities ("Cities") and parties to review ETI's proposed
rates, operations and services of an electric utility pursuant to City authority under the
Public Utility Regulatory Act §33.025; and
WHEREAS, on or about May 13, 2008, the Community Association of the
Woodlands("CATW"),the Kroger Co. ("Kroger"),Office of Public Utility Counsel("OPUC"),
Texas Legal Service Center("TLSC"),the Texas Ratepayers Organization to Save Energy
("Texas Rose") and ETI entered into a non-unanimous settlement ("NUS"), the Entergy
Service Cities'Steering Committee recommended approval of the terms of the NUS to the
Cities; and
WHEREAS, the merits and the reasonableness of the NUS was reviewed and
approved by three Administrative Law Judges ("ALIs")at the State Office of Administrative
Hearings ("SOAR") and the ALIs concluded that the NUS and settlement rates are
reasonable and in the public interest; and
WHEREAS, Cities' rate consultants and attorney retained to review this matter
recommended approval of the NUS rates; and
WHEREAS, during October and November, 2008, Cities passed rate ordinances
approving the NUS rates which were not appealed by ETI and have become final lawful
rates in the City; and
WHEREAS, on or about December 11, 2008, ETI reached a new settlement
agreement with the PUC Staff, Industrial customers and State of Texas, parties who were
not part of the NUS, for rates that are lower than the NUS levels as show on Attachment
A; and
WHEREAS, the NUS rates approved by the City have not yet been implemented
by ETI, and the Company now proposes to implement the new lower settlement rates on
a system-wide basis; and
WHEREAS, ETI proposes that implementation of the lower rates is good cause to
allow ETI to implement the new lower settlement rates earlier than the 35 day period
prescribed by PURA §36.102 to accomplish uniform system wide rates.
NOW, THEREFORE, BE IT ORDAINED BY THE
CITY COUNCIL OF THE CITY OF BEAUMONT:
Section 1.
The statement and the findings set out in the preamble to this ordinance are hereby
in all things approved and adopted.
Section 2.
The City of Beaumont, Texas, hereby approves the rates requested by ETI in its
December 19, 2008, Statement of Intent.
Section 3
The City of Beaumont,Texas,finds good cause to grant ETI's request to implement
the new lower rates earlier than the 35 day period prescribed by PURA § 36.102 so
customers within the City may benefit from lower electric rates and charges.
Section 4.
The effective date of the rate change is for bills rendered on and after January 28,
2009.
Section 5.
The meeting at which this ordinance was approved was in all things conducted in
strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter
551.
Section 6.
The ordinance shall become effective from and after its passage.
PASSED BY THE CITY COUNCIL of the City of Beaumont this the 27th day of
January, 2009.
,Ili - Mayor Becky Ames -
Otis, ��� AV
ATTACHMENT A
IMPACT OF ETI DECEMBER 19,2008
STATEMENT OF INTENT TO CHANGE RATES
LINE RATE City Approved ETI December 19,2008 ETI Proposed Percent
NO. CLASS NUS Rates Rate Proposal Rate Reduction Recloctiom
i Residental $268,983,447 $265,878,562 -$3,104,885 -1,15%
2 Small General Service $19,905,680 $17,937,790 -$1,967,890 -9.89%
3 General Service $119,648,970 $116,169,099 -$3,479,871 -2.91%
4 Large General Service $36,045,490 $34,669,798
-$1,375,692 =3.829fi
5 large Industrial Power Service $96,627,687 $84,946,265
-$11,681,422 -12.09
6 Lighting iE
g $7,063,685 $7,097,980 $34,295 0.49%
7 Total System $548,274,959 $526,699,494 -$21,575,465 -3.94%