Ordinance 2015-31 - Ord. 2015-31 - Suspend effective date for Entergy rate increaseORDINANCE NO. 2015-31
ORDINANCE OF THE CITY OF HUNTSVILLE, TEXAS, AUTHORIZING THE
SUSPENSION OF THE EFFECTIVE DATE FOR AN ADDITIONAL NINETY (90) DAYS
BEYOND THE JULY 17, 2015, EFFECTIVE DATE PROPOSED BY ENTERGY TEXAS,
INC., IN CONNECTION WITH ITS RATE INCREASE APPLICATION ENTITLED
"APPLICATION OF ENTERGY TEXAS, INC. FOR AUTHORITY TO CHANGE RATES ",
FILED ON JUNE 12, 2015; AUTHORIZING THE HIRING OF LAWYERS AND RATE
EXPERTS; AUTHORIZING THE CITY'S PARTICIPATION TO THE FULL EXTENT
PERMITTED BY LAW AT THE PUBLIC UTILITY COMMISSION OF TEXAS,
REQUIRING REIMBURSEMENT OF MUNICIPAL RATE CASE EXPENSES; 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 June 12, 2015, Entergy Texas, Inc. ( "Entergy ") filed a Statement of
Intent with the City to increase electric rates and implement tariff riders and surcharges in the Entergy
Service Area; and
WHEREAS, Cities have exclusive original jurisdiction over the rates, operations and services
of an electric utility in areas in the municipality pursuant to the Public Utility Regulatory Act
§33.001(a); and
WHEREAS, Public Utility Regulatory Act § 33.021 requires a local regulatory authority to
make a reasonable determination of rate base, expenses, investment and rate of return and retain the
necessary personnel to determine reasonable rates; and
WHEREAS, the City's reasonable cost for regulatory expenses in ratemaking proceedings
shall be reimbursed by the electric utility under Public Utility Regulatory Act § 33.023; and
WHEREAS, given the complexity of the proposed rate increase and the need to fully review
the proposed base rate and riders, it is necessary to suspend the effective date for implementing the
proposed rates until at least October 15, 2015, in order to allow the City's rate experts sufficient time
to determine the merits of Entergy's proposed rates; and
WHEREAS, in order to maximize the efficient use of resources and expertise in reviewing,
analyzing, and investigating Entergy's $75.3 million base rate increase request and Entergy's proposed
surcharges and riders, City's efforts will be coordinated with similarly situated municipalities through
the Entergy Texas, Inc. Cities Service Area Steering Committee; and
WHEREAS, the City will join with other Entergy service area municipalities in a steering
committee in order to coordinate the hiring and direction of counsel and consultants working on behalf
of the steering committee and the City; and
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 effective date of Entergy's proposed rate increase, and the proposed tariffs
related thereto, is hereby suspended for an additional ninety (90) days until October 15, 2015, in order
to complete the review and investigation by City's experts.
Section 3. The City is authorized to join with other municipalities as part of the Entergy
Texas, Inc. Service Area Steering Committee with the understanding that the steering committee will
provide direction and guidance to the lawyers who are representing said cities.
Section 4. The City employs The Lawton Law Firm, P.C. to represent the City with regard
to Entergy's proposed rate increase before local and state regulatory authorities and any court of law
and authorizes counsel to employ such rate experts as are recommended by the Cities' Steering
Committee.
Section 5. The Steering Committee shall review the invoices of the lawyers and rate
experts for reasonableness.
Section 6. City's legal representatives shall have the right to obtain additional information
from Entergy through the service of requests for information.
Section 7. Entergy shall reimburse the City, for the reasonable costs of attorney and
consultant expenses related thereto, upon the presentation of invoices reviewed by the Steering
Committee.
Section 8. 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 9. This Ordinance shall become effective from and after its passage.
Passed and approved this 7th day of July 2015.
AT ST:
oodwa i , City Secretary
THE CITY OF HUNTSVILLE
dej
Mac Woodward, ayor
APPROVED AS TO FORM:
Frd Schneider, City Attorney