Ordinance 2015-04 - Ord. 2015-04 - Denying Entergy rate increase to PUC - 11-18-14 ORDINANCE NO. 2015-04
AN ORDINANCE BY THE CITY OF HUNTSVILLE, TEXAS ("CITY") DENYING THE
DISTRIBUTION COST RECOVERY FACTOR RATE INCREASE REQUEST OF ENTERGY
TEXAS, INC. FILED ON SEPTEMBER 18, 2014; SETTING JUST AND REASONABLE
RATES FOR ENTERGY TEXAS, INC. FOR SERVICE WITHIN THE MUNICIPAL LIMITS;
FINDING THAT THE MEETING COMPLIES WITH THE OPEN MEETINGS ACT;
MAKING OTHER FINDINGS
WHEREAS, on or about September 18, 2014 Entergy Texas, Inc. ("Entergy") filed an Application
for Authority to Implement a Distribution Cost Recovery Factor with the City to increase electric
rates by implementing new riders pursuant to Public Utility Regulatory Act ("PURA") Section
36.210; and
WHEREAS, the proposed Distribution Cost Recovery Factor rates proposed by Entergy Texas, Inc.
would increase customer rates in the Entergy Service Area by $6,980,180 per year; and
WHEREAS, Entergy the jurisdictional deadline for the City to act in this rate matter is November
17, 2014; and
WHEREAS, the expert utility rate consultants retained to review the Company's Distribution Cost
Recovery Factor rates on behalf of the City have issued a preliminary report and concluded that
Entergy has incorrectly calculated the proposed Distribution Cost Recovery Factor and substantially
overstated the claimed need for the rate increase requested. The consultants' analyses support
substantial reductions to the Entergy request; and
WHEREAS, the rate experts retained for the rate review have concluded that Entergy's rate filing
request is unsupported; and
WHEREAS, Entergy has failed to properly support and justify the rate class increase amounts for
Entergy's proposed class allocation of certain distribution costs; and
WHEREAS, Entergy has failed to justify Entergy's proposed rates included in lighting service; and
WHEREAS, the statutory deadline to act on Entergy's Distribution Cost Recovery Factor rate
increase request is November 17, 2014;
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 denies the Entergy Distribution Cost Recovery
Factor rate increase.
Section 3. Entergy's Distribution Cost Recovery Factor rate increase application on file
with the City is denied in total.
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.
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PASSED AND APPROVED this `� day of �p,)gl Qf' 2014.
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Mac Woodward, Mayor
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ST: APP OV D AS TO FORM:
oodward, City Secretary eon rd Schneider, City Attorney
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