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HomeMy WebLinkAboutPO 6856: DENYING THE DISTRIBUTION COST REVOERY FACTOR RATE INCREASE REQUEST OF ENTERGY TEXAS P.O. No. 6856 04/06/2020 gt ORDINANCE NO. AN ORDINANCE BY THE CITY OF PORT ARTHUR, TEXAS ("CITY") DENYING THE DISTRIBUTION COST RECOVERY FACTOR RATE INCREASE REQUEST OF ENTERGY TEXAS, INC. FILED ON MARCH 31, 2020; SETTING JUST AND REASONABLE RATES FOR ENTERGY TEXAS, INC. FOR SERVICE WITHIN THE MUNICIPAL LIMITS; FINDING THAT THE MEETING COMPLIES WITH THE OPEN MEETINGS ACT; MAKING OTHER FINDINGS WHEREAS, on or about March 31, 2020, Entergy Texas, Inc. ("Entergy") filed an Application to Amend its Distribution Cost Recovery Factor ("DCRF") with the City to increase electric rates by amending its DCRF rider pursuant to Public Utility Regulatory Act ("PURA") Section 36.210; and WHEREAS, City has exclusive original jurisdiction over the rates, operations and services of an electric utility within its municipal limits pursuant to PURA Section 33.001(a); and WHEREAS, the jurisdictional deadline for the City to act in this rate matter is May 30, 2020; and WHEREAS, Entergy's existing DCRF rider is set to collect approximately $3.2 million per year; and WHEREAS, Entergy's proposed amended Distribution Cost Recovery Factor rider would increase customer rates in the Entergy Service Area by approximately $20.4 million per year, for a total of $23.6 million per year; and WHEREAS, the City retained the Lawton Law Firm, P.C. to review the Company's rate request and make necessary rate recommendations to the City; and WHEREAS, the Lawton Law Firm has recommended that the City deny the Company's request to amend its Distribution Cost Recovery Factor. NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR, TEXAS: I 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 Entergy's request to amend its Distribution Cost Recovery Factor in total. 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. READ, ADOPTED AND APPROVED on this day of April A.D., 2020, at a Regular Meeting of the City Council of the City of Port Arthur, Texas, by the following vote: AYES: Mayor: , Councilmembers: , NOES: . Thurman Bill Bartle, Mayor ATTEST: Sherri Bellard, City Secretary 2 APPROVED AS TO FORM: J Valecia R. izeno, Ciorne APPROVED FOR ADMINISTRATION: Ronald Burton, City Manager 3