HomeMy WebLinkAboutPO 6370: DENYING THE RATE INCREASE REQUEST OF ENTERGY INC. P. O. No. 6370
02/13/14 gt
ORDINANCE NO.
AN ORDINANCE BY THE CITY OF PORT ARTHUR,
TEXAS ( "CITY ") DENYING THE RATE INCREASE
REQUEST OF ENTERGY TEXAS, INC. FILED ON
SEPTEMBER 25, 2013; SETTING JUST AND
REASONABLE RATES FOR ENTERGY TEXAS, INC. FOR
SERVICE WITHIN THE MUNICIPAL LIMITS PURSUANT
TO A SETTLEMENT WITH ENTERGY TEXAS, INC.;
REQUIRING ENTERGY TEXAS, INC. TO FILE UPDATED
TARIFFS IN COMPLIANCE WITH THE APPROVED
RATES; 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 September 25, 2013 Entergy Texas, Inc. ( "Entergy ")
filed a Statement of Intent with the City to increase electric base rates in the Entergy
Service Area by $38.6 million per year, to implement new riders charging customers
$14.5 million per year, for a total requested annual increase of $53.1 million; and
WHEREAS, the City of Port Arthur suspended the effective date of Entergy's
rates within its jurisdictional limits until at least January 28, 2014 and hired the Lawton
Law Firm, P.C. to review the Company's rate change request and proposed tariffs; and
WHEREAS, Entergy agreed to extend the January 28, 2014, jurisdictional
deadline to March 15, 2014, and further agreed to extend the March 15, 2014 deadline
to March 24, 2014 in order to accommodate the passage of Ordinances adopting
settlement rates; and
WHEREAS, Entergy and parties to PUC Docket No. 41791, Entergy's base
rate case currently pending before the Public Utility Commission, have reached a
settlement in principle of Entergy's base rate increase request resulting in a $18.5
million increase to Entergy's current adjusted revenues; and
WHEREAS, under the settlement Residential, Small General Service, and the
Lighting Class customers will all receive a base rate decrease. The base rate
increase /(decrease) is allocated among the customer classes as follows:
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Table 1
Proposed Settlement Base Rate Increase /(Decrease) by Customer Class
Customer Class Entergy Initial Request Proposed Settlement
Residential $2,049,444 ($2,212,094)
Small General Service $169,710 ($280,630)
General Service $23,549,366 $15,937,075
Large General Service $3,753,620 $1,801,335
Large Industrial $9,255,883 $3,508,964
Lighting Service ($175,150) ($254,652)
Total Base Rate Increase: $38,602,873 $18,500,000
; and
WHEREAS, the settlement rates and tariffs are a just and reasonable result and
are well within the range of reasonable outcomes of Entergy's base rate case had it been
appealed to the Public Utility Commission of Texas; and
WHEREAS, the statutory deadline to act on Entergy's rate increase request is
March 24, 2014.
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
requested in Entergy's Statement of Intent.
Section 3. That the City finds that an annual base rate increase of $18.5
million is just and reasonable in accordance with Texas Utility Code § 36.003 and
consistent with a reasonable resolution of the issues raised by Cities' expert consultants.
Section 4. That the City finds that the annual base rate increase shall be
billed to each customer class in accordance with the class allocation of revenues and
rate design as agreed by all parties in the settlement of Docket No. 41791 and as shown
above. The settled class allocation and rate design are reasonable and consistent with
the recommendation of City's experts retained to review Entergy's rate increase
request.
Section 5. That the City finds that Entergy should be permitted to recover
Entergy's rough production cost equalization expenses through surcharge amortized
over three years.
Section 6. That the City finds that Entergy should be permitted to recover
Entergy's reasonable rate case expenses through surcharge amortized over three years.
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Section 7. That Entergy's proposed special circumstances request to recover
historical capacity charges of $22,942,706 from customers through reconcilable fuel
rates should be and is hereby denied consistent with the parties' settlement in PUC
Docket No. 41791. Entergy is also ordered to reduce Entergy's recommended retail
fuel reconciliation balance by an additional $1.25 million consistent with the parties'
settlement in PUC Docket No. 41791.
Section 8. That except as modified by City's Ordinance setting rates and the
settlement approved in PUC Docket No. 41791, Entergy's statement of intent
application on file with the City is approved.
Section 9. That Entergy is hereby Ordered to file a proof of revenues and
Entergy's proposed tariffs reflecting rates consistent with the City's revenue
requirements and adjustments set out above. Such rates and tariffs shall be effective for
service rendered on and after April 1, 2014 in accordance with Texas Utility Code §
36.111. In the event that the effective date of rates resulting from the settlement of
PUC Docket No. 41791 is delayed beyond the April 1, 2014 effective date, then
effective date of Entergy's rates within the City will be suspended and will coincide
with the manner of implementation and effective date of rates approved in PUC Docket
No. 41791.
Section 10. 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 11. That this is ordinance shall become effective from and after its
passage.
READ, ADOPTED AND APPROVED on this day of February A.D.,
2014, at a Meeting of the City Council of the City of Port Arthur, Texas, by the
following vote: AYES:
Mayor:
Councilmembers:
NOES:
Deloris "Bobbie" Prince, Mayor
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ATTEST:
Sherri Bellard, City Secretary
APPROVED AS TO FORM:
q1
Valecia R. Tiz fo, City Attorney
APPROVED FOR ADMINISTRATION:
John A. Comeaux, P.E., Interim City Manager
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