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ORD 2010-30 - Entergy, Texas Rate Refund 04-20-2010Agenda Item �1 ORDINANCE NO. 2010-30 ORDINANCE BY THE CITY OF HUNTSVILLE, TEXAS ( "CITY") APPROVING THE RATE REFUND OF ENTERGY TEXAS INC. CONTAINED IN THE STATEMENT OF INTENT FILED ON MARCH 25,2010; 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 March 25, 2010, Entergy Texas, Inc. ( "ETI ") filed a Statement of Intent to Adopt New Rate to implement a new Rough Production Cost Equalization ("RPCEA ") refund ( "Application") with the City to refund to customers rough production equalization receipts for ETI's Texas service territory; WHEREAS, the RPCEA rates are anticipated to refund $28.46 in May, $21.44 in June, $15.56 in July, and $16.07 in August for average residential customers using 1000 kWh per month of electricity; WHEREAS, the rough production cost equalization receipts were received by ETI in 2009 pursuant to an order of the Federal Energy Regulatory Commission ( "FERC ").. The FERC determined that the Entergy System Agreement no longer operated to maintain the production costs of the various Entergy operating companies within a reasonable level of parity. As a remedy, FERC implemented a Rough Production Cost Equalization system as part of the Entergy System Agreement. The remedy requires payments among the Entergy Operating Companies whenever an operating company's production costs are greater or less than a percentage of the system average production costs. For 2008, Entergy Arkansas, Inc.'s ( "EAI ") production costs were substantially below system average production costs. FERC ordered EAI to make payments to the other operating companies in order to roughly equalize the production cost disparity; WHEREAS, ETI calculates the rough production cost equalization receipts from EAI currently due to Texas retail customers to be $117.5 million, with interest, and such amount is subject to future adjustment; WHEREAS, the RPCEA is designed to refund the amounts calculated by ETI to be currently due in a timely manner over the summer of 2010; WHEREAS, the law firm and consultant hired by City have reviewed the Application, fmd it to be sufficient, and recommend the Application's approval; 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 City of Huntsville hereby approves the refund rates established in ETI's Application. Section 3. In accordance with Section 36.103(b) of the Texas Public Utility Regulatory Act ( "PURA "), the City waives the publication of notice requirement set forth in Section 36.103(a) of PURA. 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 20th da ATTEST: Woodward, City Secretary Schneider, City Attorney 2