HomeMy WebLinkAboutORD 09-033 ORDINANCE NO. 09-033
ORDINANCE BY THE CITY OF BEAUMONT, TEXAS ("CITY")
APPROVING THE RATE REFUND OF ENTERGY TEXAS INC.
CONTAINED IN THE APPLICATION OF ENTERGY FOR
AUTHORITY TO IMPLEMENT NEW RPCEA RATE FILED BY
ENTERGY TEXAS, INC. ON MAY 26, 2009; FINDING THAT THE
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 May 26, 2009, Entergy Texas, Inc. ("ETI") filed an
Application for Authority to Implement New Rough Production Cost Equalization
("RPCEA") Rider ("Application") with the City to refund to customers rough production
equalization receipts for ETI's Texas service territory;
WHEREAS, the RPCEA rates are anticipated to refund $13.24 in July, $12.71 in
August, and $14.79 in September for average residential customers using 1000 kWh
per month of electricity;
WHEREAS, the rough production cost equalization receipts were received by ETI
in 2008 pursuant to an order of the Federal Energy Regulatory Commission ("FERC").
The FERC determined that the Entergy System Agreement no longer operated to
maintain the production costs of the various Entergy operating companies within a
reasonable level of parity. As a remedy, FERC implemented a Rough Production Cost
Equalization system as part of the Entergy System Agreement. The remedy requires
payments among the Entergy Operating Companies whenever an operating company's
production costs are greater or less than a percentage of the system average
production costs. For 2007, Entergy Arkansas, Inc.'s ("EAI") production costs were
substantially below system average production costs. FERC ordered EAI to make
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payments to the other operating companies in order to roughly equalize the production
cost disparity;
WHEREAS, ETI calculates the total rough production cost equalization receipts
from EAI due to Texas retail customers to be $67.4 million and such amount is subject
to future adjustment;
WHEREAS, the RPCEA is designed to refund the amounts calculated by ETI to
be currently due in a timely manner over the summer of 2009;
WHEREAS, the law firm and consultant hired by City have reviewed the
Application, find it to be sufficient, and recommend the Application's approval; and
NOW THEREFORE, BE IT ORDAINED BY THE
CITY COUNCIL OF THE CITY OF BEAUMONT, TEXAS, THAT:
Section 1.
That the statement and findings set out in the preamble to this Ordinance are
hereby in all things approved and adopted.
Section 2.
The City of Beaumont hereby approves the refund rates established in ETI's
Application.
Section 3.
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.
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Section 4.
This Ordinance shall become effective from and after its passage.
PASSED AND APPROVED this 16th day of June, 2009.
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- Mayor Pro Tern Audwin Samuel -
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