HomeMy WebLinkAboutORD 14-016ORDINANCE NO.14-016
A ORDINANCE 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 AND THE FEDERAL
ENERGY REGULATORY COMMISSION IN 2014
WHEREAS, Entergy Texas, Inc.'s ("ETI") implementation of customer choice has
ceased due to Senate Bill 1492 and 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 year and into
the future; and,
WHEREAS, ETI is scheduled to litigate requests in various proceedings before the
Public Utility Commission, before municipalities, or before the Federal Energy Regulatory
Commission in 2013 related to ETI's proposal to integrate with the Midwest Independent
System Operator ("MISO"), ETI's commitment to exit the Entergy System Agreement on
an expedited basis, various fuel cost refunds or surcharges and reconciliations, capacity
cost surcharges and reconciliations; and for any type of incremental base rate adjustment
proceedings (such as a transmission cost recovery rider, a distribution cost recovery rider,
energy efficiency cost recovery factor, hurricane restoration cost or offset true -ups, or a
purchased power capacity cost recover rider) or cost allocation adjustments; and,
WHEREAS, ETI is scheduled to file fuel factor proceedings at the Public Utility
Commission in February and August 2014, and file other fuel proceedings during 2014 to
reconcile fuel, to refund or surcharge fuel charges, and to change the fuel mechanism,
along with various surcharge requests impacting rates; and,
WHEREAS, ETI is scheduled to file a proceeding to recover costs incurred in
association with its Energy Efficiency Plan as well as reconcile past costs; and,
WHEREAS, Cities have the statutory right to set fair and reasonable rates for both
the Company and customers 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 standing before each Federal Energy Regulatory
Commission case in which the City may be affected pursuant to 18 C.F.R. § 385.214; 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 ORDAINED
BY THE CITY COUNCIL OF THE CITY OF BEAUMONT:
SECTION 1. 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 reconciliations,
capacity cost surcharges and reconciliations, the allocation and refund of rough production
cost equalization payments, any interim or incremental surcharge proceedings or
surcharge adjustments, and for any base rate adjustment proceedings or cost of service
adjustments on file with the Public Utility Commission or with municipalities in 2014 and
seek appropriate regulatory scrutiny in any case on file at the Federal Energy Regulatory
Commission affecting the City and its residents.
The City of Beaumont shall participate with other Cities to intervene in fuel or fuel
related proceedings at the Public Utility Commission and the Federal Energy Regulatory
Commission on file in 2014 concerning ETI's rates charged to Texas 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 Ordinance shall be effective from and after the date of its
passage.
PASSED BY THE CITY COUNCIL of the City of Beaumont this 25th day of March,
f84GEN
EST:
City Secretary
APPROVED TOFORM:
ayor Beckvy Ames -