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Ordinance 2015-04 - Ord. 2015-04 - Denying Entergy rate increase to PUC - 11-18-14 ORDINANCE NO. 2015-04 AN ORDINANCE BY THE CITY OF HUNTSVILLE, TEXAS ("CITY") DENYING THE DISTRIBUTION COST RECOVERY FACTOR RATE INCREASE REQUEST OF ENTERGY TEXAS, INC. FILED ON SEPTEMBER 18, 2014; SETTING JUST AND REASONABLE RATES FOR ENTERGY TEXAS, INC. FOR SERVICE WITHIN THE MUNICIPAL LIMITS; FINDING THAT THE MEETING COMPLIES WITH THE OPEN MEETINGS ACT; MAKING OTHER FINDINGS WHEREAS, on or about September 18, 2014 Entergy Texas, Inc. ("Entergy") filed an Application for Authority to Implement a Distribution Cost Recovery Factor with the City to increase electric rates by implementing new riders pursuant to Public Utility Regulatory Act ("PURA") Section 36.210; and WHEREAS, the proposed Distribution Cost Recovery Factor rates proposed by Entergy Texas, Inc. would increase customer rates in the Entergy Service Area by $6,980,180 per year; and WHEREAS, Entergy the jurisdictional deadline for the City to act in this rate matter is November 17, 2014; and WHEREAS, the expert utility rate consultants retained to review the Company's Distribution Cost Recovery Factor rates on behalf of the City have issued a preliminary report and concluded that Entergy has incorrectly calculated the proposed Distribution Cost Recovery Factor and substantially overstated the claimed need for the rate increase requested. The consultants' analyses support substantial reductions to the Entergy request; and WHEREAS, the rate experts retained for the rate review have concluded that Entergy's rate filing request is unsupported; and WHEREAS, Entergy has failed to properly support and justify the rate class increase amounts for Entergy's proposed class allocation of certain distribution costs; and WHEREAS, Entergy has failed to justify Entergy's proposed rates included in lighting service; and WHEREAS, the statutory deadline to act on Entergy's Distribution Cost Recovery Factor rate increase request is November 17, 2014; 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 Entergy Distribution Cost Recovery Factor rate increase. Section 3. Entergy's Distribution Cost Recovery Factor rate increase application on file with the City is denied in total. 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. i PASSED AND APPROVED this `� day of �p,)gl Qf' 2014. /f2 Mac Woodward, Mayor Zip- ST: APP OV D AS TO FORM: oodward, City Secretary eon rd Schneider, City Attorney I