HomeMy WebLinkAboutPO 6942: DENYING ENTERGY RATES P. O. NO. 6492
09/30/15 gt
ORDINANCE NO.
AN ORDINANCE BY THE CITY OF PORT ARTHUR, TEXAS
("CITY") DENYING THE DISTRIBUTION COST RECOVERY
FACTOR RATE INCREASE REQUEST OF ENTERGY TEXAS,
INC. FILED ON SEPTEMBER 4, 2015; SETTING JUST AND
REASONABLE RATES FOR ENTERGY TEXAS, INC. FOR
SERVICE WITHIN THE MUNICIPAL LIMITS; FINDING THAT
THE MEETING COMPLIES WITH THE OPEN MEETINGS ACT;
MAKING OTHER FINDINGS
WHEREAS, on or about September 4, 2015 Entergy Texas, Inc. ("Entergy")
filed an Application for Authority to Amend the existing Distribution Cost Recovery
Factor with the City to increase electric rates by implementing new riders pursuant to
Public Utility Regulatory Act("PURA") Section 36.210; and
WHEREAS, the proposed Distribution Cost Recovery Factor rates proposed by
Entergy Texas, Inc. would increase customer rates in the Entergy Service Area by $6.5
million per year above the current Distribution Cost Recovery Factor surcharge; and
WHEREAS, the jurisdictional deadline for the City to act in this rate matter is
November 3, 2015; and
WHEREAS, the expert utility rate consultants retained to review the Company's
Distribution Cost Recovery Factor rates on behalf of the City have made preliminary
findings that Entergy has incorrectly calculated the proposed Distribution Cost Recovery
Factor and overstated the claimed need for the rate increase requested. The consultants'
analyses support reductions to the Entergy request; and
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WHEREAS, the rate experts retained for the rate review have concluded that
Entergy's rate filing request is not supported; and
WHEREAS, Entergy has failed to properly support and justify the rate class
increase amounts for Entergy's proposed class allocation of certain distribution costs; and
WHEREAS, the statutory deadline to act on Entergy's Distribution Cost
Recovery Factor rate increase request is November 3, 2015.
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 Entergy Distribution
Cost Recovery Factor rate increase.
Section 3. That Entergy's Distribution Cost Recovery Factor rate increase
application on file with the City is denied in total.
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 day of October A.D., 2015,
at a Regular Meeting of the City Council of the City of Port Arthur, Texas, by the
following vote: AYES:
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Mayor:
Councilmembers:
NOES:
Deloris "Bobbie"Prince, Mayor
ATTEST:
Sherri Bellard, City Secretary
APPROVED AS TO FORM:
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Valecia R. Tizeno, ity Attorney
APPROVED FOR ADMINISTRATION:
Brian McDougal, City Manager
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