ORD 1999-29 - Entergy - Gulf States - Revenues 10-26-1999ORDINANCE NO. 99-29
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
HUNTSVILLE, TEXAS, REQUIRING ENTERGY GULF STATES TO BOOK
AND HOLD REVENUES FROM THE SALE OF POWER FROM THE
RIVER BEND NUCLEAR STATION ATTRIBUTABLE TO THE 281 MW
ACQUIRED FROM CAJUN ELECTRIC COOPERATIVE IN A SUSPENSE
ACCOUNT PENDING FINAL DETERMINATION OF THE REGULATORY
TREATMENT OF THAT PORTION OF RIVER BEND.
WHEREAS, the City of Huntsville, Texas, is a regulatory authority under Tex. Util. Code §
33.001, and has original jurisdiction over the rates, operations, and services of
Entergy Gulf States, Inc. (EGS) in the municipality; and
WHEREAS, on February 1, 1999, the City of Huntsville, other Cities, EGS, and other parties to
EGS' rate case executed a settlement agreement which provided that the regulatory
treatment of the 30% share of River Bend acquired from Cajun Electric Power
Cooperative would be determined in the 2001 rate case; and
WHEREAS, in May 1999, the Texas Legislature enacted amendments to the Public Utility
Regulatory Act (PURA) which froze rates until January 1, 2002, thus eliminating the
EGS rate case contemplated in the settlement agreement of the parties in PUC
Docket No. 20150, and the rate case required by the settlement agreement in the Gulf
States /Entergy merger case, PUC Docket No. 11292; and
WHEREAS, as a result of the legislative changes which eliminated the rate case required by the
Commission's Order in Docket No. 11292 and contemplated in Docket No. 20150,
the Public Utility Commission of Texas ordered EGS to address the regulatory
treatment of the 30% of River Bend acquired from Cajun Electric Cooperative in its
S.B. 7 implementation proceeding; and
WHEREAS, EGS has unilaterally decided to withhold power generated at River Bend attributable
to the 30% share from its Texas retail customers; and
WHEREAS, on July 23, 1999, EGS curtailed service to many firm distribution level customers
because Entergy had insufficient power to supply its Texas retail customers. During
such curtailments, power from the 30% of River Bend acquired from Cajun Electric
Cooperative was sold off the Entergy system; and
WHEREAS, EGS is selling power generated at River Bend attributable to the 30% share off
system; and
WHEREAS, the City Council having considered the changes to the settlement agreement, PURA,
the Public Utility Commission of Texas' orders concerning River Bend, EGS'
service failures, and EGS' sale of power from the 30% of River Bend acquired from
Cajun Electric Cooperative off system, is of the opinion that the revenues from the
sale of power attributable to the 30% share of River Bend should be segregated and
held in a suspense account pending regulatory determination of the disposition;
NOW, THEREFORE, be it ordained by the City Council of the City of Huntsville, Texas, that:
Section 1: EGS shall book and hold in a suspense account all revenues from the sale of River
Bend power attributable to the 30% share acquired from Cajun Electric Cooperative
pending regulatory determination of the appropriate regulatory treatment of such
power. Such accounting shall begin with the settlement of the various lawsuits
between EGS/Entergy and Cajun Electric Cooperative in December 1997, and shall
include all assets transferred to Entergy or EGS by Cajun at the price paid by Entergy
or EGS for such acquisition. The booking should also reflect the value of nuclear
fuel acquired from Cajun, settlement proceeds, return of funds from the Court
registry, decommissioning funds, and revenues from the sale of power attributable
to the 30% share of River Bend since December 1997. The booking of revenues
shall be updated monthly.
Section 2: EGS shall provide the required accounting information and underlying support in
such detail and format, and with such frequency as Cities' consultants, DUCI, and
attorneys, Butler, Porter, Gay & Day, request.
Section 3: Nothing contained in the Ordinance shall be construed now or hereafter as limiting
or modifying in any manner, the right and power of the City under the law to regulate
the rates, operations, and services of EGS.
Section 4: Should any part, sentence, or phrase of this Ordinance be determined to be unlawful,
void, or unenforceable, the validity of the remaining portions of this Ordinance shall
not be adversely affected. No portion of this Ordinance shall fail or become
inoperative by reason of the invalidity of any other part. All provisions of this
Ordinance are severable.
Section 5: All Ordinances, Resolutions, or parts thereof in conflict herewith are repealed to the
extent of such conflict.
PASSED AND APPROVED by the City Council of the City of Huntsville, Texas on this 26th day
of October, 1999.
THE CITY OF HUNTSVILLE
William B. Green, Mayor
ATTEST:
Danna Welter, City Secretary
FTIYIJIU. M
Paul C. �Isham�,City �Attorney