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Home My WebLink AboutPO 6073: RATE REFUND OF ENTERGY TEXAS INC.Interoffice • MEMORANDUM }~ ~ ~ ~~.. To: Mayor, City Council, and City Manager ti J From: Valecia R. Tizeno, City Attorney Date:- March 29, 2010 Subject: P. O. No. 6073; Council•Meeting April 6, 2010 Attached is P. O. No. 6073 approving the rate refund. of Entergy Texas Inc. contained in the. Statement of Intent filed on March 25, 2010; finding that the Meeting complies with the `Open Meetings Act; making other findings. and provisions related to the subject;. and declaring an effective date. VRT:ts Attachment cc: Dan liawton THE LAWTON LAW FIRM 701 Brazos, Suite •500 Austin, TX 78701 s.po6073_memo i THE. LAWTON LAW FIRM, =P:C. 701 liia:os Snits 500 • Austin, Texas 7K i01 • 5I2/32?: (Kll9 • Pax: 512/710$917 March 29, 2010 Mr. Richard. Ferguson City Attorney - City of Anahuac 13201 Northwest Freeway, Suite 300 1-louston, Texas-77040 , Mr.'Pyrone Cooper City. Attoney -- City of Beaumont P.O. Box 3827 - Beaumont, Texas 77704 Mc Kyle Hayes City Manager -City of Beaumont P.O. Box 3827 Beaumont, Texas 77704 Mr. Phillip Cook City Manager -City of Cleveland 907 P. Houston Cleveland, Texas 77327 Mr. Mark Winberry City Attorney -City of Conroe P.U. Box 3066 Conroe. Texas 77305 Mr. D. L- Sosa Cily Manager -City of Groves P.O. Box 3286 _ Port Arthur, Texas 77643 Mr. Leonard Schneider City Attorney -City of Huntsville 2 Riverway, Suite 700 Houston, Texas 77056-1918 Mr. Brad Stafford City Manager -City of Navasota 202 G. Washington Navasota, Texas 77868 Mr_ Paul Fukuda City Attorney -Bridge City 260 Rachal Post Office Box 846 Bridge City, Texas 77611 Mr. Kemteth Wall City Attorney - City of Cleveland Olson & Olson Wortham Tower, Suite 600 2727 Allen Parkway Houston, Texas 77019 Mr..lames Black City Attorney -City of Groves 3627 Protessional Drive Port Arthur, Texas 77643 Mr. Bill Baine City Manager-City of Huntsville 1212 Avc. M Huntsville,'I'X 77340 Mr. Bryan Fowler City Attorney-City ol-Montgomcry lOl OId Plantersville Road Montgomery, Texas 77316 Mr. Cary Bovey ' Law Office of Cary L. Bovey, PLLC 2251 Double Creek Dr., Suite 204- Round Rock, Texas 78664 Y Mr. Christopher Duque City Manager - City of Nederland P.O. Box 967 Nederland, "Texas 77627 Mr. Jesse Branick City Attorney-City of Nederland 221 1 hvy. 69 South. Suite 100 (office) Nederland, TX 77627 Mr.'fony Butler Oak Ridge North. 27424 Robinson Road Oak Kidge North, Texas 77385 Mr. Shawn Oubre City Manager - City of Orange 803 W. Green Avenue, Room 201 Orange, Texas 77630 Mr. 'fonuuy Gunn City Attorney - City of Pinehurst 202 S. Border Orange, Texas 77630 Mr. Andre Wiener City Manager -City of Port Neches 634 Avenue C Port Ncchcs, Texas 77651 409-719-4302 (fax) Mr. Greg Smith City Manager -City of Shenandoah 29955.11 I-45 N. Shenandoah, Texas 77381 Ms. Vicky Rudy Oak Ridge North 27424 Robinson Road Oak Ridge North, Texas 77385 Mr. Rodney Price City Attorney -City of Pine Forest City Attorney -City of Rase City 215 W. Freeway Vidor, Texas 77662 Ms. Val Tizeno City Attorney - Cily' of Port Arthur P.O. Box 1089 Pcirt Arthur, Texas 77640 Mr. Pete Steele City Atlomey -City of Port Neches 3120 Central Mall Drive ' Port Arthur,'I'exas 77642 Mr. Harry Wright. City Attomey -City of Silsbee PO Box 186 Port Neches, Texas 77651 Mayor Dorothy Welch Mr. Joe Alford City Attorney Leonard Schneider City Attorney -City of West Orange City of Splendora 105 Market P.O. Box 1087 Orange, Texas 77630 Splendora, Texas 77372 Ile: Entergy '1 exas, Int.'s Application to hnplement A New Rate Steering Committee of Cities located in I?ntergy'fexas, lnc.'s Service Territory: As you know, Entergy Texas, Ina ("Entergy") filed a Statement of Intent to Adopt a -New Rate on March 2S, 2010, in accordance with the settlement agreement entered into with the Steering Committee of Cities (`Cities"). We have reviewed the rate refund proposed by Entergy and lind-that the rates comport with the Cities' agreement. Attached to this letter is a Rate Refund Ordinance implementing the refund.. An average residential customer using 1000 kW'h could expect a refund of $2x.46 in May. $2L44 in June, $15.56 in July, and $16.07 for Augusl bills. Lt order for the refund to he implemented in May, in accordance with the agreement crf Cities, the attached Rate Refund Ordinance must be passed in April This Ordinance is in addition to the Rate Ordinance sent last week denying Entcrgy's proposed rate increase. If you have any questions or concerns, please do not hesitate to call. Sincerely, Davie] J. Lawton P. O. No. 6073 03/29/10 is ORDINANCE NO. AN ORDINANCE APPROVING. THE RATE REFUND OF ENTERGY TEXAS ING. CONTAINED IN THE STATEMENT OF INTENT FILED ON MARCH 25, 2.010; FINDING THAT THE MEETING COMPLIES WITH THE OPEN MEETINGS ACT; HARING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND DECLARING AN EFFECTIVE DATE WHEREAS, on or about March 25, 2010, Entergy Texas, Inc. (TETIN) filed. a Statement of intent to" Adopt New Rate to implement a new .Rough Production Cost ("RPCEAR") refund ("Application") with the City to refund to customers rough production equalization receipts for ETI's .Texas Service territory; and • WHEREAS,. the RPCEA rates are. anticipated to refund $28..46 in May, $21.44 in. June, $15.56 in July, and $16.07 in August for average residential. customers using 1000 .kWh per month of electricity; and WHEREAS, the rough production cost equalization receipts were received by ETI in 2009 pursuant to an order of the Federal. Energy Regulatory Commission ("FERC"). The FERC determined that the Entergy System Agreement no longer operated to maintain the. production costs of the various Entergy operating companies within a reasonable level of parity. As a remedy, FERC implemented a RPCEAR system as part of the Entergy System Agreement. The remedy requires payments among the Entergy Operating Companies whenever an. operating company's production S.po6073 costs are greater or less than a percentage of the system average production costs. 'For 2008, Entergy Arkansas, Inc.'s ("EAI") production costs were substantially below system average production costs. FERC ordered EAI to make payments to the other operating companies in order to roughly equalize the production. cost disparity; and . WHEREAS, ETI calculates 'the rough production cost equalization .receipts from EAI currently due to Texas retail customers to be $117.5 million, with interests and such amount is subject to future adjustment; ,and. WHEREAS, the RPCEA is designed to refund the amounts calculated by ETI. to be currently due in a timely manner over the summer of 201.0; and ' WHEREAS, the law firm and. consultant hired by the City have reviewed the Application, find 'it to be sufficient, and recommend the Application's approval. NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE' ~. CITY. OF PORT ARTHUR:. Section_1. That the facts and opinions in the preamble are true and correct. Section 2. That the City of Port Arthur hereby approves the refund rates established in ETI's Application. Section 3_' That in accordance with Section 36.103 (b) of the Texas Public Utility Regulatory Act ("PURR"), the City waives 'the publication o£ notice requirement set forth in s.po6073 ' Section 36.102 (a) of PURR. Section 4. That the meeting at which this.Ordinance was approved was in all things conducted ins 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. Section 6. That a copy of the caption of this Ordinance be spread upon the Minutes of the City Council. READ, ADOPTED AND APPROVED on°this day of ~ , A.D., 2010, at a Council Meeting of the City Council. of the City of Port Arthur, Texas, by the following vote: AYES: Mayor , City Council , NOES: ATTEST: MAYOR CITY SECRETARY APPROVED AS ,TO FORM: /~ CITY ATTORI~~Y APPROVED FOR ADMINISTRATION: CITY MANAGER' ~ - s.po6073 e ~a