HomeMy WebLinkAboutORD 18-057ORDINANCE NO. 18-057
AN ORDINANCE BY THE CITY OF BEAUMONT, TEXAS ("CITY")
APPROVING THE SETTLEMENT FILED IN ENTERGY TEXAS,
INC.'S RATE PROCEEDING INITIATED 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. ("ETI" or "Company")
filed a Statement of Intent with the City to increase electric rates in its service area by
$117.5 million per year; and,
WHEREAS, ETI proposed to offset the first two years of the rate increase by
about $100.8 million per year for income taxes that it over -collected as a result of the
Tax Cuts and Jobs Act of 2017 ("TCJA"); and,
WHEREAS, the City suspended the effective date of ETI's rates within its
jurisdictional limits until September 17, 2018, and retained the Lawton Law Firm, P.C. to
review the Company's rate change request and proposed tariffs; and,
WHEREAS, the City denied ETI's rate request on August 28, 2018; and,
WHEREAS, concurrently with its filing with the City, the Company filed its
Statement of Intent with the Public Utility Commission of Texas ("PUC" or
"Commission") on May 15, 2018, under Docket No. 48371; and,
WHEREAS, the City intervened in Docket No. 48371 at the Commission along
with other cities pursuant to the Public Utility Regulatory Act ("PURA") § 33.025; and,
WHEREAS, ETI, PUC Staff, and other intervening parties participating in Docket
No. 48371 have reached a settlement of ETI's base rate increase request; and,
WHEREAS, the settlement authorizes a $53.2 million increase to ETI's current
adjusted revenues; and,
WHEREAS, the settlement provides that ETI will return to customers
approximately $205 million (including interest) in excess deferred tax savings that
accrued pursuant to the TCJA; and,
WHEREAS, the settlement provides that ETI will return to customers $25 million
for tax over -collections in 2018 as a result of the TCJA; and,
WHEREAS, over the first four years rates are in effect, Residential customers will
experience a $2.9 million annual decrease compared to current rates, Small General
Service customers will receive a $1.3 million annual increase, and Street Lighting rates
will decrease by about $900,000 per year. The impact on the remaining rate classes will
average out to a $3.6 million annual decrease for General Service customers, a
$700,000 annual increase for Large General Service customers, and $1.1 million annual
increase for Large Industrial Power Service customers; and,
WHEREAS, having reviewed the Company's rate change request and the terms
of the proposed settlement, the Lawton Law Firm has recommended approval of the
settlement agreement; and,
WHEREAS, settlement of the case will reduce the risk of an unanticipated or
negative outcome and will also reduce litigation expenses; and,
WHEREAS, the settlement will result in a just and reasonable outcome and is in
the public interest;
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 settlement agreement proposed in PUC Docket No. 48371 is
approved.
Section 3. 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 4. This ordinance shall become effective from and after its passage.
PASSED BY THE CITY COUNCIL of the City of Beaumont this the 25th day of
September, 2018.
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- City Secretary