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HomeMy WebLinkAboutORD 17-003ORDINANCE NO. 17-003 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 2017. WHEREAS, Entergy Texas, Inc.'s ("ETI") implementation of customer choice has ceased due to Tex. S.B. 1492, 81St Leg. (2009) and ETI will continue to be regulated under traditional cost -of -service regulation; 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 2017 and into the future; and, WHEREAS, ETI is scheduled to litigate requests in various proceedings before the Public Utility Commission of Texas, before municipalities, or before the Federal Energy Regulatory Commission in 2017 related to ETI's continued integration with the Midwest Independent System Operator ("MISO"), ETI's exit from the Entergy System Agreement (effective August 31, 2016), various fuel cost refunds or surcharges and reconciliations, and for any type of base rate proceedings or cost adjustments, such as a new base rate increase request, transmission cost recovery rider, a distribution cost recovery rider, energy efficiency cost recovery factor, or hurricane restoration cost or offset true -ups; and, WHEREAS, ETI is scheduled to file fuel factor proceedings at the Public Utility Commission in February and August 2017, and to file other fuel proceedings to refund or surcharge fuel charges; 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 exclusive 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: THAT the statements and findings set out in the preamble to this ordinance are hereby, in all things, approved and adopted; and, 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, 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 of Texas or with municipalities in 2017 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 2017 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 the 24th day of January, 2017 Secretary 1 1/ APPROVED TOFORM: -14 U Mayor Bec y Ames - f