HomeMy WebLinkAboutPO 6707: ENTERGY TEXAS, INC. FOR AUTHORITY TO CHANGE RATES P.O. No. 6707
06/11/18 gt
ORDINANCE NO.
AN ORDINANCE OF THE CITY OF PORT ARTHUR, TEXAS
AUTHORIZING THE SUSPENSION OF THE EFFECTIVE DATE FOR
AN ADDITIONAL NINETY (90) DAYS BEYOND THE JUNE 19, 2018,
EFFECTIVE DATE PROPOSED BY ENTERGY TEXAS, INC., IN
CONNECTION WITH ITS RATE INCREASE APPLICATION
ENTITLED "APPLICATION OF ENTERGY TEXAS, INC. FOR
AUTHORITY TO CHANGE RATES", FILED ON MAY 15, 2018;
AUTHORIZING PARTICIPATION WITH THE ENTERGY TEXAS, INC.
SERVICE AREA CITIES STEERING COMMITTEE HIRING OF
EXPERTS; AUTHORIZING THE CITY'S PARTICIPATION TO THE
FULL EXTENT PERMITTED BY LAW AT THE PUBLIC UTILITY
COMMISSION OF TEXAS, REQUIRING REIMBURSEMENT OF
MUNICIPAL RATE CASE EXPENSES; 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 and implement tariff rider
surcharges in the Entergy Service Area; 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's reasonable cost for regulatory expenses in ratemaking
proceedings shall be reimbursed by the electric utility under Public Utility Regulatory Act
§ 33.023; and
WHEREAS, given the complexity of the proposed rate increase and the need to
fully review the proposed base rate and riders, it is necessary to suspend the effective
date for implementing the proposed rates until at least September 17, 2018 in order to
allow the City's rate experts sufficient time to determine the merits of Entergy's
proposed rates; and
WHEREAS, in order to maximize the efficient use of resources and expertise in
reviewing, analyzing, and investigating Entergy's base rate increase request and
Entergy's proposed rate riders, City's efforts will be coordinated with similarly situated
municipalities through the Entergy Texas, Inc. Cities Service Area Steering Committee;
and
WHEREAS, the City will join with other Entergy service area municipalities in a
steering committee in order to coordinate the hiring and direction of counsel and
consultants working on behalf of the steering committee and the City; and
NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE
CITY OF PORT ARTHUR, TEXAS:
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. That the effective date of Entergy's proposed rate increase, and the
proposed tariffs related thereto, is hereby suspended for an additional ninety (90) days
until September 17, 2018 in order to complete the review and investigation by City's
experts.
Section 3. That the City is authorized to join with other municipalities as part
of the Entergy Texas, Inc. Service Area Steering Committee with the understanding that
the steering committee will provide direction and guidance to the lawyers who are
representing cities in the Entergy Texas, Inc. service area.
Section 4. That the Steering Committee shall review the invoices of the
lawyers and rate experts for reasonableness.
Section 5. That the City's legal representatives shall have the right to obtain
additional information from Entergy through the service of requests for information.
Section 6. That 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 7. That 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 8. That this Ordinance shall become effective from and after its
passage.
READ, ADOPTED AND APPROVED on this day of A.D.,
2018, at a Regular Meeting of the City Council of the City of Port Arthur, Texas, by the
following vote: AYES:
Mayor:
Councilmembers:
NOES:
Derrick Ford Freeman, Mayor
ATTEST:
Sherri Bellard, City Secretary
APPROVED AS TO FORM:
,/
Valecia R. Tizen ity Attorney
APPROVED FOR ADMINISTRATION:
Harvey Robinson, Interim City Manager