HomeMy WebLinkAboutPO 7104: DENYING ENTERGY TEXAS, INC. STATEMENT OF INTENT AND APPLICATION FOR AUTHORITY TO CHANGE RATES FILED ON JULY 1, 2022 P.O. No. 7104
10/12/22 gt
ORDINANCE NO.
AN ORDINANCE BY THE CITY OF PORT ARTHUR, TEXAS,
DENYING ENTERGY TEXAS, INC.'S STATEMENT OF INTENT
AND APPLICATION FOR AUTHORITY TO CHANGE RATES
FILED ON JULY 1, 2022; 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
its Statement of Intent and Application for Authority to Change Rates with the City
of Port Arthur ("City") to increase electric rates in the Entergy Service Area by
approximately $131.4 million per year; 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 of Port Arthur suspended the effective date of
Entergy's rates within its jurisdictional limits until at least November 3, 2022, and
hired the Lawton Law Firm, P.C. to review the Entergy's rate change request and
proposed tariffs; and
WHEREAS, the expert utility rate consultants retained to review the
Entergy's rate increase on behalf of the City proposed adjustments to Entergy's
requested profit levels, depreciation recoveries, and other cost of service items,
and concluded that Entergy has not justified the need for a rate increase; 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 November 3, 2022.
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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 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 5. That this ordinance shall become effective from and after its
passage.
READ, ADOPTED AND APPROVED on this 25th day of October A.D.,
2022, at a Meeting of the City Council of the City of Port Arthur, Texas, by the
following vote: AYES:
Mayor: ,
Councilmembers: ,
NOES: .
Thurman Bill Bartie, Mayor
ATTEST:
Sherri Bellard, City Secretary
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APPROVED AS TO FORM:
YA/
Valecia R. Tize CityAttorney
,
APPROVED AS TO ADMINISTRATION:
Ronald Burton, City Manager
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