HomeMy WebLinkAboutPO 6471: ENTERGY, IN CONNECTION WITH ITS RATE INCREASE P.O. No. 6471
06/16/15 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
JULY 17, 2015, 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 JUNE 12, 2015; AUTHORIZING THE HIRING OF
LAWYERS AND RATE 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 June 12 , 2015 , Entergy Texas,
Inc . ( "Entergy" ) filed a Statement of Intent with the City
to increase electric rates and implement tariff riders and
surcharges 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
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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
October 15 , 2015, 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 $75 . 3 million base rate increase
request and Entergy' s proposed surcharges and 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 a 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, THAT:
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 October 15, 2015, 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 said cities .
Section 4 . That the City employs The Lawton Law
Firm, P. C. to represent the City with regard to Entergy' s
proposed rate increase before local and state regulatory
authorities and any court of law and authorizes counsel to
employ such rate experts as are recommended by the Cities'
Steering Committee .
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Section 5 . That the Steering Committee shall
review the invoices of the lawyers and rate experts for
reasonableness .
Section 6 . That the City' s legal representatives
shall have the right to obtain additional information from
Entergy through the service of requests for information.
Section 7 . 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 .
Section 8 . 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 9 . That this Ordinance shall become
effective from and after its passage .
immediately.
READ, ADOPTED AND APPROVED on this day of
A.D. , 2015 , at a Regular 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:
City Secretary
APPROVED AS TO FORM:
City Attor
APPROVED FOR ADMINISTRATION:
City Manager
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