HomeMy WebLinkAboutORD 11-094 ORDINANCE NO. 11-094
ORDINANCE OF THE CITY OF BEAUMONT, TEXAS
AUTHORIZING THE SUSPENSION OF THE EFFECTIVE
DATE FOR AN ADDITIONAL NINETY (90) DAYS BEYOND
THE JANUARY 2, 2012, EFFECTIVE DATE PROPOSED BY
ENTERGY TEXAS, INC., IN CONNECTION WITH ITS RATE
INCREASE APPLICATION ENTITLED "APPLICATION OF
ENTERGY TEXAS, INC. FOR AUTHORITY TO CHANGE
RATES AND TO RECONCILE FUEL COSTS," FILED ON
NOVEMBER 28, 2011; AUTHORIZING THE HIRING OF
LAWYERS AND RATE EXPERTS; AUTHORIZING THE
CITY'S PARTICIPATION TO THE FULL EXTENT
PERMITTED BY LAW AT THE PUBLIC UTILITY
COMMISSION OF TEXAS, REQUIRING REIMBURSEMENT
OF MUNICIPAL RATE CASE EXPENSES; 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 November 28, 2011 Entergy Texas, Inc. ("ETI") filed a
Statement of Intent with the City to increase electric rates in the ETI Service Area by
$111.8 million per year; and,
WHEREAS,Cities have exclusive original jurisdiction overthe rates,operations and
services of an electric utility in areas in the municipality pursuant to the Public Utility
Regulatory Act §33.001(a); and,
WHEREAS, Public Utility Regulatory Act § 33.021 requires a local regulatory
authority to make a reasonable determination of rate base, expenses, investment and rate
of return and retain the necessary personnel to determine reasonable rates; and,
WHEREAS, the City's reasonable cost for regulatory expenses in rate making
proceedings shall be reimbursed by the electric utility under Public Utility Regulatory Act
§ 33.023; and,
WHEREAS,given the complexity of the proposed rate increase and the need to fully
review the proposed rate adjustment it is necessary to suspend the effective date for
implementing the proposed rates until at least April 2, 2012 in order to allow the City's rate
experts sufficient time to determine the merits of ETI's proposed rates; and,
WHEREAS, in order to maximize the efficient use of resources and expertise in
reviewing analyzing, and investigating ETI's $111.8 million rate increase request, City's
efforts will be coordinated with similarly situated municipalities through the Entergy Texas,
Inc. Cities Service Area Steering Committee; and,
WHEREAS, the City will join with other ETI service area municipalities in a steering
committee in order to coordinate the hiring and direction of counsel and consultants
working on behalf of the steering committee and the City;
NOW THEREFORE, BE IT ORDAINED BY THE
CITY COUNCIL OF THE CITY OF BEAUMONT THAT:
Section 1. That the statement and findings set out in the preamble to this
resolution are hereby in all things approved and adopted.
Section 2. The effective date of ETI's proposed rate increase, and the proposed
tariffs related thereto, is hereby suspended for an additional ninety (90)days until April 2,
2012 in order to complete the review and investigation by City's experts.
Section 3. The City is authorized to join with other municipalities as part of the
Entergy Texas, Inc. Service Area Steering Committee with the understanding that the
steering committee will provide direction and guidance to the lawyers who are representing
said cities.
Section 4. The City employs The Lawton Law Firm, P.C. to represent the City
with regard to the proposed rate increase of ETI before local and state regulatory
authorities and any court of law and authorizes counsel to employ such rate experts as are
recommended by the Cities' Steering Committee.
Section 5. The Steering Committee, shall review the invoices bf the lawyers and
rate experts for reasonableness before submitting the invoices to ETI for reimbursement.
Section 6. City's legal representatives shall have the right to obtain additional
information from ETI through the service of requests for information.
Section 7. ETI shall reimburse the City, through the designated representative
city of the Steering Committee, for the reasonable costs of attorneys and consultant and
expenses related thereto, upon the presentation of invoices reviewed by the Steering
Committee.
Section 8. 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 9. This Ordinance shall become effective from and after its passage.
PASSED BY THE CITY COUNCIL of the City of Beaumont this 13th day of
December, 2011.
- M or Becky Ames -
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