ORD 2010-30 - Entergy, Texas Rate Refund 04-20-2010Agenda Item �1
ORDINANCE NO. 2010-30
ORDINANCE BY THE CITY OF HUNTSVILLE, TEXAS ( "CITY") APPROVING
THE RATE REFUND OF ENTERGY TEXAS INC. CONTAINED IN THE
STATEMENT OF INTENT FILED ON MARCH 25,2010; 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 March 25, 2010, Entergy Texas, Inc. ( "ETI ") filed a
Statement of Intent to Adopt New Rate to implement a new Rough Production Cost
Equalization ("RPCEA ") refund ( "Application") with the City to refund to customers
rough production equalization receipts for ETI's Texas service territory;
WHEREAS, the RPCEA rates are anticipated to refund $28.46 in May, $21.44 in
June, $15.56 in July, and $16.07 in August for average residential customers using 1000
kWh per month of electricity;
WHEREAS, the rough production cost equalization receipts were received by ETI
in 2009 pursuant to an order of the Federal Energy Regulatory Commission ( "FERC ")..
The FERC determined that the Entergy System Agreement no longer operated to
maintain the production costs of the various Entergy operating companies within a
reasonable level of parity. As a remedy, FERC implemented a Rough Production Cost
Equalization system as part of the Entergy System Agreement. The remedy requires
payments among the Entergy Operating Companies whenever an operating company's
production costs are greater or less than a percentage of the system average production
costs. For 2008, Entergy Arkansas, Inc.'s ( "EAI ") production costs were substantially
below system average production costs. FERC ordered EAI to make payments to the
other operating companies in order to roughly equalize the production cost disparity;
WHEREAS, ETI calculates the rough production cost equalization receipts from
EAI currently due to Texas retail customers to be $117.5 million, with interest, and such
amount is subject to future adjustment;
WHEREAS, the RPCEA is designed to refund the amounts calculated by ETI to
be currently due in a timely manner over the summer of 2010;
WHEREAS, the law firm and consultant hired by City have reviewed the
Application, fmd it to be sufficient, and recommend the Application's approval; 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
Ordinance are hereby in all things approved and adopted.
Section 2. The City of Huntsville hereby approves the refund rates
established in ETI's Application.
Section 3. In accordance with Section 36.103(b) of the Texas Public Utility
Regulatory Act ( "PURA "), the City waives the publication of notice requirement set forth
in Section 36.103(a) of PURA.
Section 4. 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. This Ordinance shall become effective from and after its passage.
PASSED AND APPROVED this 20th da
ATTEST:
Woodward, City Secretary
Schneider, City Attorney
2