HomeMy WebLinkAboutORD 18-048ORDINANCE NO. 18-048
AN ORDINANCE BY THE CITY OF BEAUMONT, TEXAS ("CITY")
DENYING THE RATE INCREASE REQUEST OF ENTERGY
TEXAS, INC. FILED ON MAY 15, 2018; 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 May 15, 2018, Entergy Texas, Inc. ("Entergy") filed a
Statement of Intent with the City to increase electric rates in the Entergy Service Area
by $16.7 million per year for the first two years rates would be in effect and $117.6
million per year thereafter; and,
WHEREAS, the City of Beaumont suspended the effective date of Entergy's
rates within its jurisdictional limits until September 17, 2018, and hired the Lawton Law
Firm, P.C. to review the Company's rate change request and proposed tariffs; and,
WHEREAS, the expert utility rate consultants retained to review the Company's
rate increase on behalf of the City have proposed a total of about $120 million in
consolidated adjustments to Entergy's revenue requirement and have concluded that
Entergy has not justified the need for a rate increase. The consultants' analyses more
than eliminate the Company's purported annual revenue increase, as set out in the
recommendations made to the City in the Final Rate Report to Cities Steering
Committee ("Report"); and,
WHEREAS, the rate experts retained for the rate review have concluded that
Entergy's rate filing request includes rate increases for Entergy's proposed cost of
capital, depreciation rates, employee compensation—including bonus, stock awards
and other compensation—benefits, and storm reserve charges, which are unjustified by
Entergy's filing; and,
WHEREAS, Entergy has failed to justify increasing the rates previously
determined to be reasonable and necessary by this City and other Texas regulatory
authorities; and,
WHEREAS, the statutory deadline to act on Entergy's rate increase request is
September 17, 2018;
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 City of Beaumont hereby denies the rate increase and
proposed tariff revisions requested in Entergy's Statement of Intent.
Section 3. Entergy is hereby ordered to continue operating under its existing
approved rates.
Section 4. Entergy shall reimburse the City for the reasonable costs of
attorney and consultant expenses related thereto, upon the presentation of invoices
reviewed by the Steering Committee.
Section 5. 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 6. This ordinance shall become effective from and after its passage.
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.
PASSED BY THE CITY COUNCIL of the City of Beaumont this the 28th day of
August, 2018.
NO
Citv Clerk
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