ORD 2010-29 - Entergy, Texas - Deny Rate Increase 04-20-2010 I
Agenda Item
ORDINANCE NO.2010-29
AN ORDINANCE BY THE CITY OF HUNTSVILLE, TEXAS
("CITY") DENYING THE RATE INCREASE REQUEST OF
ENTERGY TEXAS, INC. FILED ON DECEMBER 30, 2009;
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 December 30, 2009 Entergy Texas, Inc. ("Entergy")
filed a Statement of Intent with the City to increase electric rates in the Entergy Service
Area by$210.5 million per year; and
WHEREAS, the City of Huntsville suspended the effective date of Entergy's rates
within its jurisdictional limits until at least May 4, 2010 and hired the Lawton Law Firm,
P.C. to review the Company's rate change request and proposed tariffs;
WHEREAS, the expert utility rate consultants retained to review the Company's
rate increase request have made a range of proposed adjustments for areas where Entergy
has not justified the need for a rate increase or has failed to comply with regulatory
ratemaking requirements. These adjustments on average reduce the Company's
purported annual revenue increase to zero dollars, as set out in the recommendations
made to the City in the Final Rate Report to Cities Steering Committee ("Report"). The
average of the adjustment range, $207.3, would essentially eliminate any increase
requested by Entergy.
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WHEREAS, the rate experts retained for the rate review have concluded that
Entergy's rate filing request includes rate increases for Entergy's proposed cost of
capital, cost of cash working capital, accumulated deferred income taxes, depreciation
rates, cost of purchased power capacity, employee compensation—including bonus, stock
awards and other compensation—benefits, federal income tax estimates, and storm
reserve charges, which are unjustified by Entergy's filing;
WHEREAS, Entergy has failed to justify increasing the rates previously
determined to be reasonable and necessary by this City and other Texas regulatory
authorities;
WHEREAS, the statutory deadline to act on Entergy's rate increase request is
May 4, 2010;
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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 rate increase and
proposed tariff revisions requested in Entergy's Statement of Intent.
Section 3. Entergy is hereby Ordered to continue operating under its existing
approved rates.
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.
PASSED AND APPROVED this 201h day of tsv' le 0.
J. u er, Mayor
ATTEST:
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L Woodward, City Secretary
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#APPRWETO FORM:
er, City Attorney
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RESOLUTION NO.2010-29
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTSVILLE, TEXAS, AUTHORIZING THE
SUBMISSION OF A STAFFING FOR ADEQUATE FIRE AND EMERGVENCY RESPONSE (SAFER) GRANT
FOR FOUR (4) FIREFIGHTERS; AND AUTHORIZING THE CITY MANAGER TO ACT AS THE CITY'S
EXECUTIVE OFFICER AND AUTHORIZED REPRESENTATIVE IN ALL MATTERS PERTAINING TO THE
CITY'S PARTICIPATION IN THE SAFER PROGRAM.
WHEREAS -T}ie-City desires to ensure the safety of all it citizens and;The City of Huntsville requires the
Fire Department be charged with this task;and
WHEREAS It is necessary and in the best interest of the City to apply for funding under the 2010 SAFER
Grant
NOW,THEREFORE,be it resolved by the City Council of the City of Huntsville,Texas,that:
SECTION 1: A application is hereby authorized to be filed on behalf of the City and be placed in
competition for funding under the SAFER.Grant.
SECTION 2: The application will be for no more than $750,000of grant funds for the Huntsville Fire
Department.
SECTION 3: The Mayor and City Council strongly support this.application to address the safety needs of
the Community.
SECTION 4: The City Council directs and designates the City Manager, Bill Baine, as the City's Chief
Executive Officer and Authorized Representative to act in all matters in connection with this
application and the City's participation in the SAFER Grant.
PASSED AND APPROVED this 7th day of September,2010.
THE CITYOLFHUNTSVILLE
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1 u n r,Mayor
IST:
LWWoodward,Ci
P 0 AS TO FORM:
L onard Schneider,City Attorney
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