ORD 2009-13 - Entergy Rate Change 01-6-2009ORDINANCE NO. 2009-13
ENTITLED AN ORDINANCE BY THE CITY OF HUNTSVILLE, TEXAS ( "CITY ")
APPROVING THE RATES OF ENTERGY TEXAS, INC., CONTAINED IN THE
STATEMENT OF INTENT TO CHANGE RATES ( "STATEMENT OF INTENT ")
FILED IN THE CITY ON DECEMBER 19, 2008; APPROVING AN EARLY
EFFECTIVE DATE OF THE RATE CHANGE; 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 26, 2007, Entergy Texas, Inc. ( "ETI ") filed a
Statement of Intent with the City to increase electric rates and charges in the ETI Service Area
by $107.5 million per year in addition to an expected $5 million annual increase to its
Miscellaneous Service Schedule charges resulting in about a $112 million annual increase to
customers; and
WHEREAS, the City suspended the effective date of ETI's rates within its jurisdictional
limits until at least September 29, 2008; and
WHEREAS, on August 19, 2008 ETI agreed to further extend the effective date of rates;
and
WHEREAS, the City intervened at the Public Utility Commission of Texas ( "PUC ") in
PUC Docket No. 34800 with other cities ( "Cities ") and parties to review ETPs proposed rates,
operations and services of an electric utility pursuant to City authority under the Public Utility
Regulatory Act §33.025; and
WHEREAS, on or about May 13, 2008, the Community Association of the Woodlands
( "CATW "), the Kroger Co. ( "Kroger "), Office of Public Utility Counsel ( "OPUC "), Texas Legal
Service Center ( "TLSC "), the Texas Ratepayers Organization to Save Energy ( "Texas Rose ")
and ETI entered into a non - unanimous settlement ( "NUS "), the Entergy Service Cities' Steering
Committee recommended approval of the terms of the NUS to the Cities; and
WHEREAS, the merits and the reasonableness of the NUS was reviewed and approved
by three Administrative Law Judges ( "ALJs ") at the State Office of Administrative Hearings
( "SOAH ") and the ALJs concluded that the NUS and settlement rates are reasonable and in the
public interest; and
WHEREAS, Cities rate consultants and attorney retained to review this matter
recommended approval of the NUS rates; and
WHEREAS, during October and November 2008, Cities passed rate ordinances
approving the NUS rates which were not appealed by ETI and have become final lawful rates in
the City; and
WHEREAS, on or about December 11, 2008, ETI reached a new settlement agreement
with the PUC Staff, Industrial customers and State of Texas, parties who were not part of the
NUS, for rates that are lower than the NUS levels as show on Attachment A; and
WHEREAS, the NUS rates approved by the City have not yet been implemented by ETI,
and the Company now proposes to implement the new lower settlement rates on a system -wide
basis; and
WHEREAS, ETI proposes that implementation of the lower rates is good cause to allow
ETI to implement the new tower settlement rates earlier than the 35 day period prescribed by
PURA §36.102 to accomplish uniform system wide rates.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL
OF THE CITY OF HUNTSVILLE, TEXAS, THAT:
SECTION 1
The statement and the findings set out in the preamble to this ordinance are hereby in all
things approved and adopted.
SECT "ION 2
The City of Huntsville, Texas hereby approves the rates requested by ETI in its
December 19, 2008 Statement of Intent
SECTION 3
The City of Huntsville, Texas finds good cause to grant ETI's request to implement the
new lower rates earlier than the 35 day period prescribed by PURA § 36.102, so customers
within the City may benefit from lower electric rates and charges.
SECTION 4
The effective date of the rate change is for bills rendered on and after January 28, 2009.
SECTION 5
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 6
The ordinance shall become effective from and after its passage.
PASSED AND APPROVED BY THE CITY COUNCIL of the City of Huntsville, Texas, this
the 6th day of January, 2009.
THE CITY OF HUNTSVILLE, TEXAS
J. Turner, Mayor
_ BrSteph 'e A. im, City Secretary
APPROVED AS T� 0RM:
u�MM \
Thomas A. Leep r, ity Attorney
ATTACHMENT A
IMPACT OF ETI DECEMBER 19, 2008
STATEMENT OF INTENT TO CHANGE RATES
LINE RATE
Clty Approved
ETI December 19, 2008
ETI Proposed
Percent
N0. CLASS
NUS Rates
Rate Proposal
Rate Reduction
Reductiom
1 Residental
- $268,983,447
$265,878,562
- $3,104,885
-1.15%
2 Small General Service
$19,905,680
$17,937,790
- $1,967,890
-9.89%
3 General Service
$119,648,970
$116,169,099
- $3,479,871
-2.91%
4 Large General Service
$36,045,490
$34,669,798
- $1,375,692
-3.82%
5 Large Industrial Power Service
$96,527,687
$84,946,265
- $11,681,422
- 12.09%
6 Lighting
$7,063,685
$7,097,980
$34,295
0.49%
7 Total System
$548,274,959
$526,699,494
- $21,575,465
-3.94%