HomeMy WebLinkAboutORD 20-011ORDINANCE NO. 20-011
AN ORDINANCE ' BY THE CITY OF BEAUMONT, TEXAS ("CITY")
APPROVING THE SETTLEMENT OF THE PROPOSED RATE
INCREASE OF CENTERPOINT ENERGY RESOURCES CORP., D/B/A
CENTERPOINT ENERGY ENTEX AND CENTERPOINT ENERGY
TEXAS GAS TO INCREASE RATES IN THE BEAUMONT/EAST TEXAS
DIVISION; 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 November 14, 2019, CenterPoint Energy Resources
Corp. d/b/a CenterPoint Energy Entex and CenterPoint Energy Texas Gas
("CenterPoint" or "Company") filed a Statement of Intent with the City of Beaumont
("City") to increase gas rates in the Beaumont/East Texas Division Service Area by
$6.816 million per year; and,
WHEREAS, the City of Beaumont denied the Company's rate request on
February 25, 2020, and the Company appealed the City's rate denial ordinance to the
Railroad Commission; and,
WHEREAS, CenterPoint, Railroad Commission Staff, and City groups
representing similarly -situated cities in CenterPoint's service area participated in
proceedings before the Railroad Commission of Texas and in a number of settlement
discussions to resolve the rate case issues without litigation; and,
WHEREAS, CenterPoint has agreed to settle the rate request at a rate increase
level of $4 million per year for the Beaumont and East Texas Service Area, setting the
residential customer charge at $18.00 per month, adjusting the proposed cost allocation
to minimize the residential class impact while no other customer class is moved further
from cost based revenue assignment, and providing for reasonable rate case expenses
to be recovered from all customers through a 36 month surcharge; and,
WHEREAS, the Railroad Commission Staff, the Lawton Law Firm, and counsel
for the other city groups participating in these proceedings have recommended approval
of the Settlement terms as a reasonable alternative to resolve the rate case issues
without litigation;
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 approves rates and tariffs consistent with the
CenterPoint proposed Settlement.
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 23rd day of
March, 2020.
ATTEST:
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City Clerk