ORD 2012-07 - Entergy effective datesORDINANCE NO. 2012-07
ORDINANCE OF THE CITY OF HUNTSVILLE, TEXAS, AUTHORIZING THE
SUSPENSION OF THE EFFECTIVE DATE FOR AN ADDITIONAL NINETY (90)
DAYS BEYOND THE JANUARY 2, 2012, 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
NOVEMBER 28, 2011; 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 November 28, 2011 Entergy Texas, Inc. ( "ETI ") filed a Statement
of Intent with the City to increase electric rates in the ETI Service Area by $111.8 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 April 1, 2012 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 $111.8 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
NOVA TH-EREFORF., BFI ORDAINED RY 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 April 1, 2012 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 13th day of December 2011.
A1 "PEST:
d, ity
D ''S TO FORM:
d S hneider, City Attorney
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 April 1, 2012 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 13th day of December 2011.
Mac Woodward, Mayor
ATTEST:
Lee Woodward, City Secretary
S TO FORM:
rd S hneider, City Attorney