HomeMy WebLinkAboutORD 13-064 ORDINANCE NO.13-064
ORDINANCE OF THE CITY OF BEAUMONT, TEXAS
AUTHORIZING THE SUSPENSION OF THE EFFECTIVE DATE FOR
AN ADDITIONAL NINETY (90) DAYS BEYOND THE OCTOBER 30,
2013, 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 SEPTEMBER 25, 2013; 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 September 25, 2013 Entergy Texas, Inc. ("Entergy")
filed a Statement of Intent with the City to increase electric rates and implement tariff
riders and surcharges in the Entergy Service Area; and,
WHEREAS, Cities have exclusive original jurisdiction over the 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 ratemaking
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 base rate,riders, and fuel adjustments it is necessary to suspend
the effective date for implementing the proposed rates until at least January 28, 2014 in
order to allow the City's rate experts sufficient time to determine the merits of Entergy's
proposed rates; and,
WHEREAS, in order to maximize the efficient use of resources and expertise in
reviewing, analyzing, and investigating Entergy's $38.6 million base rate increase
request, Entergy's proposed surcharges and riders, and Entergy's proposed fuel
reconciliation, 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 Entergy 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; and ,
NOW, THEREFORE, BE IT ORDAINED BY THE
CITY COUNCIL OF THE CITY OF BEAUMONT:
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 effective date of Entergy's proposed rate increase, and the
proposed tariffs related thereto, is hereby suspended for an additional ninety (90) days
until January 28, 2014 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 increases and fuel reconciliation of Entergy 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 of the lawyers
and rate experts for reasonableness before submitting the invoices to Entergy for
reimbursement.
Section 6. City's legal representatives shall have the right to obtain additional
information from Entergy through the service of requests for information.
Section 7. Entergy shall reimburse the City, through the designated
representative city of the Steering Committee, for the reasonable costs of attorney and
consultant 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 the 22nd day of
October, 2013.
0 - Ma Becky Ames -
ATTEST:
1
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City Clerk