ORD 2005-25 - Centerpoint Cease and Desist 12-13-2005ORDINANCE NO. 2005 -25
AN ORDINANCE WHICH SHALL CONSTITUTE AN
ORDER BY THE CITY OF HUNTSVILLE, TEXAS
( "CITY ") TO REQUIRE CENTERPOINT ENERGY
ENTEX ( "ENTEX ") TO CEASE AND DESIST FROM
CHARGING ILLEGAL AND UNLAWFUL RATES AND
REQUIRING REFUNDS; TO REQUIRE THE FILING OF
A REPORT WITH REGARD TO COSTS EXPENDED BY
ENTEX IN CONNECTION WITH THE APPEAL OF
ORDINANCE NO. 2005 -15; MAKING FINDINGS WITH
REGARD TO THIS ORDER; FINDING AND
DETERMINING THAT THE MEETING AT WHICH THIS
ORDINANCE WAS PASSED WAS IN ACCORDANCE
WITH THE REQUIREMENTS OF THE TEXAS OPEN
MEETINGS ACT; AND DECLARING AN EFFECTIVE
DATE.
WHEREAS, on or about June 30, 2005, CenterPoint Energy Entex ( "ENTEX ")
filed with the City Secretary for the City of Huntsville ( "City ") a request to increase
base rates; and
WHEREAS, ENTEX requested that base rates for the typical residential
customer be increased by 38.18. % or approximately $4.85 per month and ENTEX
requested that service charges, like the charge to initiate service, be increased by
467.38%; and
WHEREAS, ENTEX is required by law to publish notice of its proposed
increase in a newspaper of general circulation in Walker County; and
WHEREAS, ENTEX was ordered by the City on more than one occasion to
publish notice in a manner consistent with Texas law; and
WHEREAS, ENTEX has failed to comply with the lawful orders of the City
and has refused to publish notice in a manner that is consistent with Texas law.
WHEREAS, ENTEX may not put its proposed rate increase into effect without
causing notice, as required by Section 104.103(a)(1) of the Texas Utilities Code, to be
published in a newspaper of general circulation in Walker County; and
WHEREAS, ENTEX unlawfully put its proposed rate increase into effect on or
about November 3, 2005; and
WHEREAS, ENTEX should immediately stop charging any change in base
rates, which were implemented on or about November 3, 2005; and
WHEREAS, ENTEX should refund to its customers any monies received
resulting from the implementation of the change in rates that occurred on or about
November 3, 2005.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
HUNTSVILLE, TEXAS THAT:
SECTION 1. FINDINGS
Finding No. 1: ENTEX is unlawfully and illegally charging base rates
in excess of its lawful rates.
Finding No. 2: ENTEX's rate request is not properly before the City
Council and the City may not make a final decision on
ENTEX's rate request until ENTEX has published
notice consistent with Section 104.103(a)(1) of the
Texas Utilities Code.
Finding No. 3: ENTEX has on more than one occasion failed to
comply with the orders of the City to publish notice in
a manner, which is consistent with Section
104.103(a)(1) of the Texas Utilities Code.
Finding No. 4: There is no rate case in effect and no effective date for
increasing rates until public notice consistent with
Section 104.103(a)(1) of the Texas Utilities Code has
been published.
Finding No. 5: While maintaining its position that the rate request was
not properly before the Council due to defects in
publication, out of an abundance of caution, the City
suspended the effective date stated in Entex's rate
request indefinitely due to the failure to publish notice
consistent with Texas law.
Finding No. 6: This order is not based upon any particular test year
but is issued due to the charging of illegal or unlawful
rates by ENTEX.
Finding No. 7: ENTEX made a filing with the City on or about
September 21, 2005, which made some of the
information provided earlier obsolete or inaccurate.
Finding No. 8: ENTEX has refused to answer any requests for
information (discovery) with regard to its September
21, 2005 filing.
SECTION 2. CEASE AND DESIST ORDER
ENTEX is hereby ordered to cease charging base rates that exceed the
rates in effect on November 2, 2005. This order is not a final decision on ENTEX's
request to increase rates, which were filed with the City on June 30, 2005. This order
is simply prohibits, and orders the return of increased revenue resulting from, the
increase in base rates without complying with Section 104.103(a)(1) of the Texas
Utilities Code. This order does not constitute a decision on the merits of the June 30,
2005 filing of the Statement of Intent with the City.
SECTION 3. REFUNDS
ENTEX is hereby ordered to return the increase in revenues resulting
from the unlawful increase in base rates that began on or about November 3, 2005.
Refunds may be implemented by way of credits on the customers' bills who have been
overcharged. Refunds shall begin no later than December 26, 2005.
SECTION 4. REPORT
ENTEX shall submit the report called for by Section 5 of Resolution
No. 2005 -10 to the City Manager no later than December 26, 2005.
SECTION 5. ENTEX RESPONSE REQUIRED
ENTEX is hereby ordered to advise the City in writing of its intent to
comply with this order within ten days of the effective date of this ordinance.
SECTION 6. EFFECTIVE DATE
This ordinance shall become effective upon passage.
SECTION 8. 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 ENTEX
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 seventy-two hours 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 13rdav of
J. Turner, Mayor
ATTEST:
Danna Welter, City Secretary
APPROVED AS TO FORM
1-4,, Attorney
Thomas A. Leeper, City Attorney