ORD 2005-15 - Centerpoint Energy Require Publication 09-06-2005ORDINANCE NO. 2005 -15
AN ORDINANCE WHICH SHALL CONSTITUTE AN INTERIM
ORDER OF THE CITY COUNCIL OF THE CITY OF
HUNTSVILLE, TEXAS TO REQUIRE CENTERPOINT ENERGY
ENTEX TO PUBLISH NOTICE OF ITS CHANGES IN RATES
FOR A TYPICAL RESIDENTIAL CUSTOMER AND A TYPICAL
COMMERCIAL CUSTOMER AND THE CHANGES IN
SERVICE CHARGES IN A CONSPICUOUS MANNER; TO
REQUIRE CENTERPOINT TO REFILE ITS STATEMENT OF
INTENT UTILIZING A CURRENT HISTORIC TEST YEAR,
ENDING MARCH 31, 2005 AND TO REQUIRE CENTERPOINT
TO CONTACT THE CITY MANAGER ON THE DATE WHEN
IT INTENDS TO REFILE ITS STATEMENT OF INTENT USING
A CURRENT TEST YEAR AND WHEN CENTERPOINT
INTENDS TO PUBLISH NOTICE CONSISTENT WITH THIS
ORDINANCE; FINDING AND DETERMINING THAT THE
MEETING AT WHICH THIS ORDINANCE WAS PASSED WAS
IN ACCORDANCE WITH THE REQUIREMENTS OF THE
TEXAS OPEN MEETINGS ACT; MAKING OTHER FINDINGS
RELATED TO CENTERPOINT'S STATEMENT OF INTENT;
AND DECLARING AN EFFECTIVE DATE.
WHEREAS, on June 30, 2005, CenterPoint Energy Entex ( "CenterPoint ") filed a
Statement of Intent on behalf of its Beaumont /East Texas Division to increase rates within the
municipal boundaries of the City of Huntsville ( "City ").
WHEREAS, CenterPoint has failed to publish notice to indicate what the percentage
increase is for a typical residential and a typical commercial customer that is being requested
by CenterPoint within the City of Huntsville; and
WHEREAS, CenterPoint has failed to publish notice to indicate what the current
service charges are that it is seeking to increase and what the proposed service charges are if
its request is granted within the City of Huntsville; and
WHEREAS, the requirement to provide adequate and timely notice is fundamental to
the City being able to take jurisdiction over the request to increase rates by CenterPoint; and
WHEREAS, the CenterPoint ratepayers are entitled to adequate public notice before
any increases in rates are put into effect; and
WHEREAS, the historic test year utilized by CenterPoint in its rate filing ended on
March 31, 2004; and
WHEREAS, the Gas Utility Regulatory Act requires that CenterPoint's filing be based
upon a test year which contains the most recent 12 months, beginning on the first day of a
calendar or fiscal year quarter, for which operating data for a gas utility are available; and
WHEREAS, it is typical in filings before municipalities that the end of the test year not
occur more than six to seven months prior to the filing of the Statement of Intent relied upon
by CenterPoint with the City Secretary; and
WHEREAS, the test year utilized in its rate filing with the cities in the Beaumont/East
Texas Division is stale and not in compliance with state law.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF HUNTSVILLE,
TEXAS THAT:
SECTION 1. INTERIM ORDER
That this ordinance should be regarded as an interim order and shall remain in full
force and effect until a final decision is adopted by the City Council of the City of Huntsville,
Texas on CenterPoint's request to change rates.
SECTION 2. HISTORIC TEST YEAR DATA
CenterPoint shall refile its Statement of Intent using a March 31, 2005 ending test year.
CenterPoint is also ordered to notify City Manager in writing no later than September 21,
2005, by what date it will be able to re -file its Statement of Intent with the new test year.
SECTION 3. PUBLIC NOTICE
CenterPoint shall publish notice for four consecutive weeks in conspicuous form in the
Huntsville Item. CenterPoint shall publish the body of the notice in at least 12 point type. The
heading for the Notice shall be in at least lb point type, entitled "Notice of Gas Rate
Increase." The published notice shall contain information about the requested change in rates
within the City of Huntsville, as follows:
a) The dollar and cents amount and percentage change in base rates (without the
cost of gas) for a typical residential customer (6 mcf).
b) The dollar and cents about and percentage change in base rates (without the cost
of gas) for a typical commercial customer (30 mcf).
C) For each service charge that CenterPoint seeks to change provide the current
charge and the proposed charge.
CenterPoint is ordered to notify the City Manager in writing no later than September 21, 2005
if it intends to comply with the publication of notice requirements set forth in this section.
SECTION 4. CUMULATIVE REQUIREMENTS AND EFFECTIVE DATE
This Ordinance is cumulative of all other requirements for notice under state law and
shall become effective upon passage and publication as required by law.
SECTION 5. PASSED AT OPEN MEETING
That the meeting at which this Ordinance was passed was conducted in strict
compliance with the Texas Open Meetings Act (Texas Government Code Chapter 551).
SECTION 6. NOTICE TO CENTERPOINT
A copy of this Ordinance shall be faxed to Mr. Chuck Harder, Executive Director of
Rates and Regulatory, CenterPoint Energy Entex at (713) 207 -0046 within twenty -four hours
FM
of the adoption of this Ordinance along with a copy by regular mail to Mr. Harder at 1111
Louisiana, Houston, Texas 77005.
PASSED AND APPROVED this the 6`
ATTEST:
Danna Welter, City Secretary
APPROVED AS TO FORM
Thomas A. Leepek, City Attorney