ORD 2010-13 - Centerpoint Energy COSA Activation 12-15-2009City of Huntsville, Texas, Ordinance No. 2010 -13
AN ORDINANCE APPROVING THE INSTITUTION OF A COST OF SERVICE
ADJUSTMENT RATE SCHEDULE BY CENTERPOINT ENERGY ENTEX
( "CENTERPOINT" OR "COMPANY "); APPROVING THE THREE -YEAR
AMORTIZATION OF CENTERPOINT'S 2009 INCREASE IN PENSIONS AND
BENEFITS EXPENSE, PROVIDING AN EFFECTIVE DATE; REPEALING ANY
ORDINANCES INCONSISTENT WITH THIS ORDINANCE; AND REQUIRING
DELIVERY OF THIS ORDINANCE TO THE COMPANY.
WHEREAS, the City of Huntsville, Texas ( "City ") is a gas utility customer of
CenterPoint Energy Entex ( "CenterPoint" or "Company "), and a regulatory authority with
an interest in the rates and charges of CenterPoint; and
WHEREAS, CenterPoint filed with the City a new tariff whereby gas utility
charges within the City may be adjusted without the need to file a Statement of Intent
pursuant to Subchapter C of the Texas Utilities Code (Vernon 2007);
WHEREAS, CenterPoint has also requested approval to amortize over a three -
year period the increase in pension and benefits expense experienced by CenterPoint
in 2009 as reflected in FERC Account 926 and the adjustments contemplated by the
new tariff ;
WHEREAS, the attached tariff provides for an expedited and less expensive rate
review process than the current Statement of Intent process; and
WHEREAS, the attached tariff implements a mechanism to adjust gas utility
charges in a manner that is just, reasonable, and in the public interest;
WHEREAS, this Ordinance does not grant, renew, extend, or amend the
Franchise Agreement previously approved on November 12, 2009 with CenterPoint
Energy, and only serves to implement the COSA (Cost of Service Adjustment) Tariff.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
HUNTSVILLE, TEXAS:
Section 1. That the findings contained in the preamble of this Ordinance are
determined to be true and correct and are hereby adopted as part of this Ordinance.
Section 2. That the Cost of Service Adjustment Rate Schedule, which is
attached hereto and incorporated as Attachment A, is in the public interest and is
hereby endorsed in all respects.
Section 3. That the CenterPoint annual Cost of Service Adjustment will be
subject to City review, and the annual rate adjustments may be approved, approved in
part, or denied.
Section 4. That CenterPoint's request to amortize over a three -year period the
increase in its pension and benefits expense experienced in 2009, as reflected in FERC
Account No. 926, is approved.
Section 5. That this Ordinance shall become effective from and after its
passage.
Section 6. That to the extent any resolution or ordinance previously adopted
by the Council is inconsistent with this Ordinance, it is hereby repealed.
Section 7. 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 8. That a copy of this Ordinance shall be sent to the Company, care of
Denise Hardcastle at CenterPoint Energy, P.O. Box 2628, Houston, Texas 77252 -2628.
Section 9. That, if any provision, section, subsection, sentence, clause, or
phrase of this Ordinance, or the application of same to any person or set of
circumstances, is for any reason held to be unconstitutional, void or invalid, the validity
of the remaining portions of this Ordinance or their application to other persons or sets
of circumstances shall not be affected thereby, it being the intent of the City Council in
adopting this Ordinance that no portion hereof or provision or regulation contained
herein shall become inoperative or fail by reason of any unconstitutionality, voidness or
invalidity of any other portion hereof, and all provisions of this Ordinance are declared to
be severable for that purpose.
Read in full and passed and adopted on first reading at a regular meeting of the
City Council of Huntsville, Texas on the 15th day of December 2009, and approved by
the Mayor.
J. ur r ' -%%�
MAYOR OF THE CITY
OF HUNTSVILLE, TEXAS
Q
Le Woodward 1
ITY SECRETARY OF
HUNTSVILLE, TEXAS
THE STATE OF TEXAS
COUNTY OF WALKER
1, the duly appointed, qualified and acting City Secretary of the City of Huntsville,
Walker County, Texas, do hereby certify that the above and foregoing ordinance was
introduced in written or printed form in accordance with the Charter of the City of
Huntsville, Texas, at a regular meeting of the City Council of the City of Huntsville, held
at the City Hall on the 15th day of December 2009, that written notice of the date, place
and subject of said meeting was posted on a bulletin board located at a place
convenient in the City. Hall for at least the 72 hours preceding the day of said meeting
that the Mayor Turner, and eight (8) Council members:
1. Lanny Ray
2. Dalene Zender
3. Melissa Mahaffey
Charles Forbus
5. Tom Cole
6. Mac Woodward
7. Jack Wagamon
8. Wayne Barrett
were present at said meeting and acted as the Council throughout; that the same has
been signed and approved by the Mayor and has been duly filed with the City Secretary
and recorded by the City Secretary in full.
EXECUTED under my hand and the official seal of the City of Huntsville, Texas,
at said City, this the 15th day of December 2009.
oddward
Secretary of Huntsville, Texa