HomeMy WebLinkAboutORD 22-084 ORDINANCE NO. 22-084
AN ORDINANCE BY THE CITY OF BEAUMONT, TEXAS,
DENYING ENTERGY TEXAS, INC.'S STATEMENT OF INTENT
AND APPLICATION FOR AUTHORITY TO CHANGE RATES
FILED ON JULY 1, 2022; 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 July 1, 2022, Entergy Texas, Inc. ("Entergy") filed its
Statement of Intent and Application for Authority to Change Rates with the City of
Beaumont ("City") to increase electric rates in the Entergy Service Area by
approximately $131.4 million per year; and,
WHEREAS, Cities have exclusive original jurisdiction over the rates, operations
and services of an electric utility in areas in the municipality pursuant to the Public Utility
Regulatory Act §33.001(a); and,
WHEREAS, Public Utility Regulatory Act § 33.021 requires a local regulatory
authority to make a reasonable determination of rate base, expenses, investment and
rate of return and retain the necessary personnel to determine reasonable rates; and,
WHEREAS, the City of Beaumont suspended the effective date of Entergy's
rates within its jurisdictional limits until at least November 3, 2022, and hired the Lawton
Law Firm, P.C. to review the Entergy's rate change request and proposed tariffs; and,
WHEREAS, the expert utility rate consultants retained to review the Entergy's
rate increase on behalf of the City proposed adjustments to Entergy's requested profit
levels, depreciation recoveries, and other cost of service items, and concluded that
Entergy has not justified the need for a rate increase; 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.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE
CITY OF BEAUMONT, TEXAS,
THAT, 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. 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 5. This ordinance shall become effective from and after its passage.
The meeting at which this ordinance was adopted 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 6th day of
December, 2022.
- Mayor Robin.Mouton -
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