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Ordinance 2023-19 Authorizing ETI Fuel Reconciliation SettlementORDINANCE NO. 2023-19 AN ORDINANCE BY THE CITY OF HUNTSVILLE, TEXAS (“CITY”) AUTHORIZING THE SETTLEMENT OF THE PROPOSED FUEL RECONCILIATION OF ENTERGY TEXAS, INC.; 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 28, 2022, Entergy Texas, Inc. (“ETI” or the “Company”) filed an Application for Authority to Reconcile Fuel and Purchased Power Costs with the Public Utility Commission of Texas (Commission”) to reconcile approximately $1.67 billion in fuel and purchased power expenses incurred between April 1, 2019 and March 31, 2022; and WHEREAS, the Company requested that an under-recovery balance of approximately $103.1 million be carried forward as the beginning balance for the subsequent reconciliation period; and WHEREAS, ETI, Commission Staff, and other intervening parties including the Steering Committee of Cities participated in settlement discussions to resolve issues raised regarding the fuel reconciliation application without litigation; and WHEREAS, pursuant to the parties’ settlement agreement, ETI agreed that the beginning balance for the subsequent reconciliation period will be approximately $99.6 million instead of the requested $103.1 million; and WHEREAS, the Lawton Law Firm and Commission Staff have recommended approval of the Settlement terms as a reasonable alternative to resolve the fuel reconciliation issues without litigation; and WHEREAS, there will be no immediate rate impact on customers as ETI did not request to implement a surcharge to collect the under-recovery balance at this time. 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 authorizes the settlement of the ETI fuel reconciliation proceedings such that the beginning balance of the subsequent reconciliation period will be approximately $99.6 million. Section 3. 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 4. This ordinance shall become effective from and after its passage. PASSED AND APPROVED this 1st day of August, 2023. THE CITY OF HUNTSVILLE Andy Brauninger, Mayor ATTEST: APPROVED AS TO FORM: Kristy Doll, City Secretary Leonard Schneider, City Attorney