ORD 2007-32-B - Suspend Entergy Rate Increase - 90 Days 10-16-2007ORDINANCE NO. 2007 -32 FB-
ORDINANCE OF THE CITY OF HUNTSVILLE, TEXAS
AUTHORIZING THE SUSPENSION OF THE EFFECTIVE
DATE FOR AN ADDITIONAL NINETY (90) DAYS BEYOND
THE JUNE 30, 2008, EFFECTIVE DATE PROPOSED BY
ENTERGY GULF STATES, INC. IN CONNECTION WITH ITS
RATE INCREASE APPLICATION ENTITLED "APPLICATION
OF ENTERGY GULF STATES, INC. FOR AUTHORITY TO
CHANGE RATES AND TO RECONCILE FUEL COSTS,"
FILED ON SEPTEMBER 26, 2007; 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 September 26, 2007 Entergy Gulf States, Inc. ( "EGSI')
filed a Statement of Intent with the City to increase electric rates in the EGSI Service
Area by $107.5 million per year; 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 retaining 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 rate adjustment it is necessary to suspend the effective date
for implementing the proposed rates until at least September 28, 2008 in order to allow
the City's rate experts sufficient time to determine the merits of EGSI's proposed rates;
and
WHEREAS, in order to maximize the efficient use of resources and expertise in
reviewing analyzing, and investigating EGSI's $107.5 million rate increase request,
City's efforts will be coordinated with similarly situated municipalities through the Entergy
Gulf States, Inc. Cities Service Area Steering Committee;
WHEREAS, the City will join with other EGSI 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;
NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF HUNTSVILLE, TEXAS, THAT:
Section 1. The statement and findings are set out in the preamble to this
resolution are hereby in all things approved and adopted.
Section 2. The effective date of EGSI's proposed rate increase, and the
proposed tariffs related thereto, is hereby suspended for an additional ninety (90) days
until September 28, 2008 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 Gulf States, 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 the proposed rate increase of EGSI 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 before submitting the invoices to EGSI for
reimbursement.
Section 6. City's legal representatives shall have the right to obtain additional
information from EGSI through the service of requests for information, which shall be
responded to within twenty (20) days of receipt of such requests for information.
Section 7. EGSI shall reimburse the City, through the designated
representative city of the Steering Committee, for the reasonable costs of attorneys and
consultant and expenses related thereto, upon the presentation of invoices reviewed by
the Steering Committee.
Section 8. The meeting at which this resolution was approved was in all
things conducted in strict compliance with the Texas Open Meeting Act, Texas
Government Code, Chapter 551.
Section 9. This ordinance shall become effective from and after its passage.
PASSED AND APPROVED THIS 164-day of October, 2007.
Danna Welter
City Secretary
ELeeper
City Attorney