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RESO 2009-03 - Entergy cities coalition to oppose rates at PUC for 2009RESOLUTION 2009 -03 A RESOLUTION OF THE CITY COUNCIL OF HUNTSVILLE, WALKER COUNTY, TEXAS, AUTHORIZING PARTICIPATION WITH OTHER ENTERGY SERVICE AREA CITIES IN MATTERS CONCERNING ENTERGY TEXAS, INC. AT THE PUBLIC UTILITY COMMISSION OF TEXAS AND THE FEDERAL ENERGY REGULATORY COMMISSION IN 2009. WHEREAS, Entergy Texas, Inc.'s ( "ETI ") implementation of customer choice has been delayed due to lack of competition; lack of independent market structures and organizations in its service territory to implement fair competition; and because ETI's ability to control the market in its region has not been evaluated, ETI will continue to be regulated; WHEREAS, changes to the Public Utility Regulatory Act addressing rates and rate proceedings will have a direct impact on ETI and customer bills during the continued transition to competition; WHEREAS, ETI is scheduled to litigate its request in various proceedings at the Public Utility Commission and Federal Energy Regulatory Commission in 2009 related to various fuel cost surcharges and reconciliations, capacity cost surcharges and reconciliation; plans for approval of various market structures necessary for the implementation of fair competition, ETI's plan for transitioning to competition, Hurricane Ike cost recovery, and for any type of base rate adjustment proceedings; WHEREAS, ETI is scheduled to file fuel factor proceedings at the Public Utility Commission in February and August 2009, and file other fuel proceedings during 2009 to reconcile fuel, to surcharge or refund fuel charges, and to change the fuel mechanism, along with various surcharge requests impacting rates; WHEREAS, ETI is scheduled to file a proceeding to determine the proper Texas allocation of rough production cost equalization payments from Entergy Arkansas; WHEREAS, ETI is scheduled to file a proceeding to recover costs incurred in association with the restoration of service to retail customers following Hurricane Ike; WHEREAS, Cities have the statutory right to set fair and reasonable rates for both the Company and ratepayers within Cities; WHEREAS, Cities have original jurisdiction over rates, operations, and services of an electric utility in areas in the municipality pursuant to Tex. Util. Code §33.001; WHEREAS, Cities have standing in each case before the Public Utility Commission of Texas that relates to an electric utility providing service in the municipality pursuant to TEx. UT1L. Code §33.025, and standing before each Federal Energy Regulatory Commission case in which the City may be affected pursuant to 18 C. FR. § 385.214; WHEREAS, Cities are entitled to reimbursement by the utility of their reasonable rate case expenses to participate in cases that are deemed rate proceedings pursuant to Tex. Util. Code §33.023. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUNTSVILLE, TEXAS, THAT: Section 1. The City of Huntsville shall participate with other Cities to intervene in ETI's various rate filings related to the various fuel cost surcharges and reconciliation, capacity cost surcharges and reconciliation, the allocation of rough production cost allocation payments, plans for approval of various market structures necessary for the implementation of fair competition, ETI's transition to competition plan, costs associated with the restoration of service following Hurricane Ike, and for any base rate adjustment proceedings on file at the Public Utility Commission in 2009 seeking appropriate regulatory scrutiny in any case on file at the Federal Energy Regulatory Commission affecting the City and its residents. The City of Huntsville shall participate with other Cities to intervene in proceedings at the Public Utility Commission on file in 2009 concerning ETI's readiness for competition, market power, organizations and structures to assure fair competition to all customer classes. The City of Huntsville shall participate with other Cities to intervene in proceedings at the Public Utility Commission and the Federal Energy Regulatory Commission on file in 2009 concerning ETI's rates charged to customers. The City of Huntsville shall participate with other Cities to intervene in proceedings at the Public Utility Commission related to costs incurred as a result of Hurricane Ike. All such actions shall be taken pursuant to the direction of the Cities' Steering Committee. Cities' Steering Committee shall have authority to retain rate consultants and lawyers. Cities' Steering Committee shall direct the actions of Cities' representatives in the above proceedings. The Steering Committee is directed to obtain reimbursement from ETI of all reasonable expenses associated with participation in said proceedings. Section 2. This resolution shall be effective from and after the date of its passage. 2 PASSED AND APPROVED by unanimous (8 -0) vote of the City Council of the City of Huntsville, Texas, this 3rd day of March 2009. ATTEST: Bnm, City Secretary APPROVED AS TO FORM: CITY OF HUNTSVILLE, TEXAS Attorney �r