ORD 1989-14 - GSU Rates Council Rejects Rate Increase 07-11-1989ORDINANCE NO. 89 -14
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF HUNTSVILLE, TEXAS,
REJECTED THE REQUEST OF GULF STATES UTILITIES FOR AN INCREASE IN
ELECTRIC RATES, AND MAKING OTHER PROVISIONS RELATED HERETO.
FINDINGS
By Ordinance dated April 11, 1989, the City suspended the operation of
proposed rate schedules filed by Gulf States Utility Company for a period of
ninety days from their proposed effective date.
On March 21, 1989, Gulf States Utility Company had filed with the City an
application for a major rate increase. Simultaneously, GSU filed the same
request with all other Texas cities retaining ratemaking authority within its
service area, as well as with the Public Utility Commission of Texas. Prior
to the City of Huntsville's action suspending GSU's proposed rate increase,
the P.U.C. acted to suspend its rates for an even longer period. GSU has
historically appealed every action of every Texas city not approving their
request for a major utility rate increase. The P.U.C. has appellate
jurisdiction over the rates GSU charges for electric service within the City.
GSU and the P.U.C. exercise that jurisdiction to maintain uniform rates within
GSU's service area. Any local hearing to accomplish meaningful rate
regulation at a local level is thwarted by the policies and practices of GSU
and the P.U.C. which use the hearings before the P.U.C. to determine all rates
within GSU's service area. The GSU proposal to increase rates for electric
service is dependent upon inclusion of River Bend Nuclear Project costs which
were disallowed in the Company's last Texas rate case.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF HUNTSVILLE, TEXAS, that:
Section 1: The request of Gulf States Utility Company for a major rate
increase is denied.
Section 2: This Ordinance shall take effect immediately.
PASSED AND APPROVED this 11th day of JULY
, 1989.
THE CITY OF HUNTSVILLE, TEXA
By
3/I
Monday, Mayor