ORD 2010-18 - Suspension of Effective Date Entergy Proposed Rate Increase 01-19-2010ORDINANCE NO. 2010-18
ORDINANCE OF THE CITY OF HUNTSVILLE, TEXAS AUTHORIZING THE
SUSPENSION OF THE EFFECTIVE DATE FOR AN ADDITIONAL NINETY (90)
DAYS BEYOND THE FEBRUARY 3, 2010, 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 AND TO RECONCILE FUEL COSTS ", FILED
ON DECEMBER 30, 2009; 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 December 30, 2009 Entergy Texas, Inc. ( "ETI ") filed a
Statement of Intent with the City to increase electric rates in the ETI Service Area by
$198.7 million per year; 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
WHEREAS, given the complexity of the proposed rate increase and the need to
fully review the proposed rate adjustment it is necessary to suspend the effective date for
implementing the proposed rates until at least May 4, 2010 in order to allow the City's
rate experts sufficient time to determine the merits of ETI's proposed rates; and
WHEREAS, in order to maximize the efficient use of resources and expertise in
reviewing analyzing, and investigating ETI's $198.7 million rate increase request, 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 ETI 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; and
NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE
CITY OF HUNTSVILLE, TEXAS, THAT:
Section 1. That the statement and findings set out in the preamble to this
resolution are hereby in all things approved and adopted.
Section 2. The effective date of ETI's proposed rate increase, and the
proposed tariffs related thereto, is hereby suspended for an additional ninety (90) days
until May 4, 2010 in order to complete the review and investigation by City's experts.
Section 3. 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. The City employs The Lawton Law Firm, P.C. to represent the
City with regard to the proposed rate increase of ETI 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.
Section 5 The Steering Committee, shall review the invoices of the lawyers
and rate experts for reasonableness before submitting the invoices to ETI for
reimbursement.
Section 6. City's legal representatives shall have the right to obtain additional
information from ETI through the service of requests for information.
Section 7. ETI shall reimburse the City, through the designated representative
city of the Steering Committee, for the reasonable costs of attorneys and consultant and
expenses related thereto, upon the presentation of invoices reviewed by the Steering
Committee.
Section 8. 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. This Ordinance shall, become effective from and after its passage.
PASSED AND APPROVED this 19`" da.,
AS' "
/Leo
City Attorney