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ORD 2005-25 - Centerpoint Cease and Desist 12-13-2005ORDINANCE NO. 2005 -25 AN ORDINANCE WHICH SHALL CONSTITUTE AN ORDER BY THE CITY OF HUNTSVILLE, TEXAS ( "CITY ") TO REQUIRE CENTERPOINT ENERGY ENTEX ( "ENTEX ") TO CEASE AND DESIST FROM CHARGING ILLEGAL AND UNLAWFUL RATES AND REQUIRING REFUNDS; TO REQUIRE THE FILING OF A REPORT WITH REGARD TO COSTS EXPENDED BY ENTEX IN CONNECTION WITH THE APPEAL OF ORDINANCE NO. 2005 -15; MAKING FINDINGS WITH REGARD TO THIS ORDER; FINDING AND DETERMINING THAT THE MEETING AT WHICH THIS ORDINANCE WAS PASSED WAS IN ACCORDANCE WITH THE REQUIREMENTS OF THE TEXAS OPEN MEETINGS ACT; AND DECLARING AN EFFECTIVE DATE. WHEREAS, on or about June 30, 2005, CenterPoint Energy Entex ( "ENTEX ") filed with the City Secretary for the City of Huntsville ( "City ") a request to increase base rates; and WHEREAS, ENTEX requested that base rates for the typical residential customer be increased by 38.18. % or approximately $4.85 per month and ENTEX requested that service charges, like the charge to initiate service, be increased by 467.38%; and WHEREAS, ENTEX is required by law to publish notice of its proposed increase in a newspaper of general circulation in Walker County; and WHEREAS, ENTEX was ordered by the City on more than one occasion to publish notice in a manner consistent with Texas law; and WHEREAS, ENTEX has failed to comply with the lawful orders of the City and has refused to publish notice in a manner that is consistent with Texas law. WHEREAS, ENTEX may not put its proposed rate increase into effect without causing notice, as required by Section 104.103(a)(1) of the Texas Utilities Code, to be published in a newspaper of general circulation in Walker County; and WHEREAS, ENTEX unlawfully put its proposed rate increase into effect on or about November 3, 2005; and WHEREAS, ENTEX should immediately stop charging any change in base rates, which were implemented on or about November 3, 2005; and WHEREAS, ENTEX should refund to its customers any monies received resulting from the implementation of the change in rates that occurred on or about November 3, 2005. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF HUNTSVILLE, TEXAS THAT: SECTION 1. FINDINGS Finding No. 1: ENTEX is unlawfully and illegally charging base rates in excess of its lawful rates. Finding No. 2: ENTEX's rate request is not properly before the City Council and the City may not make a final decision on ENTEX's rate request until ENTEX has published notice consistent with Section 104.103(a)(1) of the Texas Utilities Code. Finding No. 3: ENTEX has on more than one occasion failed to comply with the orders of the City to publish notice in a manner, which is consistent with Section 104.103(a)(1) of the Texas Utilities Code. Finding No. 4: There is no rate case in effect and no effective date for increasing rates until public notice consistent with Section 104.103(a)(1) of the Texas Utilities Code has been published. Finding No. 5: While maintaining its position that the rate request was not properly before the Council due to defects in publication, out of an abundance of caution, the City suspended the effective date stated in Entex's rate request indefinitely due to the failure to publish notice consistent with Texas law. Finding No. 6: This order is not based upon any particular test year but is issued due to the charging of illegal or unlawful rates by ENTEX. Finding No. 7: ENTEX made a filing with the City on or about September 21, 2005, which made some of the information provided earlier obsolete or inaccurate. Finding No. 8: ENTEX has refused to answer any requests for information (discovery) with regard to its September 21, 2005 filing. SECTION 2. CEASE AND DESIST ORDER ENTEX is hereby ordered to cease charging base rates that exceed the rates in effect on November 2, 2005. This order is not a final decision on ENTEX's request to increase rates, which were filed with the City on June 30, 2005. This order is simply prohibits, and orders the return of increased revenue resulting from, the increase in base rates without complying with Section 104.103(a)(1) of the Texas Utilities Code. This order does not constitute a decision on the merits of the June 30, 2005 filing of the Statement of Intent with the City. SECTION 3. REFUNDS ENTEX is hereby ordered to return the increase in revenues resulting from the unlawful increase in base rates that began on or about November 3, 2005. Refunds may be implemented by way of credits on the customers' bills who have been overcharged. Refunds shall begin no later than December 26, 2005. SECTION 4. REPORT ENTEX shall submit the report called for by Section 5 of Resolution No. 2005 -10 to the City Manager no later than December 26, 2005. SECTION 5. ENTEX RESPONSE REQUIRED ENTEX is hereby ordered to advise the City in writing of its intent to comply with this order within ten days of the effective date of this ordinance. SECTION 6. EFFECTIVE DATE This ordinance shall become effective upon passage. SECTION 8. PASSED AT OPEN MEETING That the meeting at which this Ordinance was passed was conducted in strict compliance with the Texas Open Meetings Act (Texas Government Code Chapter 551). SECTION 6. NOTICE TO ENTEX A copy of this Ordinance shall be faxed to Mr. Chuck Harder, Executive Director of Rates and Regulatory, CenterPoint Energy Entex at (713) 207- 0046 within seventy-two hours of the adoption of this Ordinance along with a copy by regular mail to Mr. Harder at 1111 Louisiana, Houston, Texas 77005. PASSED AND APPROVED this the 13rdav of J. Turner, Mayor ATTEST: Danna Welter, City Secretary APPROVED AS TO FORM 1-4,, Attorney Thomas A. Leeper, City Attorney