HomeMy WebLinkAboutORD 16-027ORDINANCE NO. 16-027
ORDINANCE OF THE CITY OF BEAUMONT, TEXAS SUSPENDING
THE RATES PROPOSED BY CENTERPOINT ENERGY RESOURCES
CORP., d/b/a CENTERPOINT ENERGY ENTEX AND CENTERPOINT
ENERGY TEXAS GAS ("CENTERPOINT" OR "COMPANY") COMPANY'S
GAS RELIABILITY INFRASTRUCTURE PROGRAM ("GRIP") FILING
MADE WITH THE CITY ON MARCH 31, 2016; 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 March 31, 2016, CenterPoint Energy Resources Corp.,
d/b/a CenterPoint Energy Entex and CenterPoint Energy Texas Gas ("CenterPoint" or
"Company") filed an Annual GRIP adjustment for the Beaumont/East Texas Service
Area with the City of Beaumont ("City") to increase gas rates in the Beaumont/East
Texas Service Area pursuant to Gas Utility Regulatory Act, TEX. UTIL. CODE ("Gas
Utility Regulatory Act") § 104.301; and;
WHEREAS, the Company proposed an effective date of May 30, 2016, for the
rate increase; and,
WHEREAS, City has exclusive original jurisdiction over the rates, operations and
services of a gas utility in areas in the municipality pursuant to Gas Utility Regulatory
Act § 103.001; and,
WHEREAS, Gas Utility Regulatory Act § 104.301 requires a streamlined process
for the recovery of the costs of incremental investment by a gas utility; and
WHEREAS, the City's reasonable cost for regulatory expenses in ratemaking
proceedings shall be reimbursed by the gas utility under Gas Utility Regulatory Act §
103.022; and,
WHEREAS, the City will join with other municipalities in a steering committee in
order to coordinate the hiring and direction of counsel and/or consultants working on
behalf of the steering committee and the City; and,
WHEREAS, the City finds the need to suspend the effective date of
CenterPoint's proposed rate increase for 45 days beyond the Company's proposed
effective date until July 14, 2016 in order to review the Company's filing for compliance
with Gas Utility Regulatory Act § 104.301; and,
WHEREAS, the City's review of CenterPoint's GRIP filing is limited to a
ministerial review of the filing for compliance with the statute; and,
WHEREAS, the reasonableness of the Company's investment will be reviewed in
CenterPoint's subsequent base rate case where all costs included in CenterPoint's
GRIP filing will be subject to refund;
NOW THEREFORE, BE IT ORDAINED BY THE
CITY COUNCIL OF THE CITY OF BEAUMONT, TEXAS, THAT:
Section 1. 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 the Company's proposed GRIP rate increase,
and the proposed tariffs related thereto, are hereby suspended until July 14, 2016.
Section 3. To the extent the City finds that the rates proposed by
CenterPoint's filing comply with Gas Utility Regulatory Act § 104.301, then the rates will
become effective by operation of law on July 14, 2016.
Section 4. The City is authorized to join with other municipalities as part of the
Beaumont/East Texas Division Steering Committee with the understanding that the
steering committee will provide direction and guidance to the lawyers who are
representing said cities.
Section 5. The City employs The Lawton Law Firm, P.C. to represent the City
with regard to the proposed rate increase of CenterPoint before local and state
regulatory authorities and any court of law and authorizes counsel to employ such rate
experts as are recommended by the Steering Committee.
Section 6. The Steering Committee shall review the invoices of the lawyers
and/or rate experts for reasonableness before submitting the invoices to CenterPoint for
reimbursement.
Section 7. CenterPoint shall reimburse the City, through the designated
representative of the Steering Committee, for the reasonable costs of attorneys and
consultant fees and expenses related thereto, upon the presentation of invoices
reviewed by the Steering Committee.
Section 8. The meeting at which the 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 17th day of
May, 2016.
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