HomeMy WebLinkAboutPO 7083: AUTHORIZING THE SUSPENSION OF THE EFFECTIVE DATE 90 DAYS BEYOND AUGUST 5, 2022 PROPOSED BY ENTERGY TEXAS, INC. IN CONNECTION WITH ITS RATE INCREASE APPLICATION P.O. No. 7083
07/06/2022 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 AUGUST 5, 2022, 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 JULY 1, 2022;
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 July 1, 2022, Entergy Texas, Inc. ("Entergy") filed
a Statement of Intent with the City to increase electric rates 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, Public Utility Regulatory Act § 36.108(a) authorizes a municipal
regulatory authority to suspend a utility's proposed rate change for not longer than
90 days after the date the rate change would otherwise be effective; and
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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 November 3,
2022, 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 the Steering Committee in order to coordinate the hiring and direction of counsel
and consultants working on behalf of the Steering Committee and the City.
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 November 3, 2022, 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.
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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 July A.D., 2022,
at a Meeting of the City Council of the City of Port Arthur, by the following vote:
AYES:
Mayor:
Councilmembers: ,
•
NOES:
Thurman Bill Bartie, Mayor
ATTEST:
Sherri Bellard, City Secretary
APPROVED AS TO FORM:
Valecia Tizeno, ey
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APPROVED FOR ADMINISTRATION:
Ronald Burton, City Manager
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