HomeMy WebLinkAboutPO 6723: DENYING THE RATE INCEREASE REQUEST OF ENTERGY TEXAS, INC. P.O. No. 6723
8/6/18 gt
ORDINANCE NO.
AN ORDINANCE BY THE CITY OF PORT ARTHUR, 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 Port Arthur 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; and
I
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 City of Port Arthur hereby denies the rate increase
and proposed tariff revisions requested in Entergy's Statement of Intent.
Section 3. That Entergy is hereby ordered to continue operating under
its existing approved rates.
Section 4. 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 5. 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 6. 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
2
APPROVED AS TO FORM:
\'\OJ
Valecia R. Tizeno, C)44A/X-D ttorney
APPROVED FOR ADMINISTRATION:
Harvey Robinson, Interim City Manager
3