HomeMy WebLinkAboutPO 6721: APPROVING THE SETTLEMENT FILED IN ENTERGY TEXAS, INC.'S RATE P.O. No. 6721
09/17/18 gt
ORDINANCE NO.
AN ORDINANCE BY THE CITY OF PORT ARTHUR, 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 14, 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
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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 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 settlement agreement proposed in PUC Docket No.
48371 is approved.
Section 3. 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 4. 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:
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Valecia R. Tize City Attorney
APPROVED FOR ADMINISTRATION:
Harvey Robinson, Interim City Manager
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