Ordinance 2013-47 - Entergy suspension ORDINANCE NO. 2013-47
AN ORDINANCE OF THE CITY OF HUNTSVILLE, TEXAS AUTHORIZING
THE SUSPENSION OF THE EFFECTIVE DATE FOR AN ADDITIONAL
NINETY (90) DAYS BEYOND THE OCTOBER 30, 2013, 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 SEPTEMBER 25, 2013; 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 September 25, 2013 Entergy Texas, Inc. ("Entergy")
tiled a Statement of Intent with the City to increase electric rates and implement tariff
riders and surcharges in the Entergy Service Area; 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 base rate, riders, and fuel adjustments it is necessary to suspend
the effective date for implementing the proposed rates until at least January 28, 2014 in
order to allow the City's rate experts sufficient time to determine the merits of Entergy's
proposed rates; and
WHEREAS, in order to maximize the efficient use of resources and expertise in
reviewing, analyzing, and investigating Entergy's $38.6 million base rate increase
request, Entergy's proposed surcharges and riders, and Entergy's proposed fuel
reconciliation, 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 Entergy 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 Endings set out in the preamble to this
ordinance are hereby in all things approved and adopted.
Section 2. The effective date of Entergy's proposed rate increase, and the
proposed tariffs related thereto, is hereby suspended for an additional ninety (90) days
until January 28, 2014 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 increases and fuel reconciliation of Entergy 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 Entergy for
reimbursement.
Section 6. City's legal representatives shall have the right to obtain additional
information from Entergy through the service of requests for information.
Section 7. Entergy shall reimburse the City, through the designated
representative city of the Steering Committee, for the reasonable costs of attorney and
consultant 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.
1 st Reading—October 1,2013
PASSED AND APPROVED on this 1"day of October 2013.
THE CITY 7F MT LE
Mward,Mayor
T ES APPROVED TO FORM:
Woodward,City Sec Leo ar chneider,City Attorney