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RESO 2008-05 - Annual Entergy coalition of cities for PUCRESOULUTION 2008 -05 A RESOLUTION OF THE CITY COUNCIL OF HUNTSVILLE TEXAS, JOINING WITH OTHER ENTERGY SERVICE AREA CITIES IN SUPPORT OF A NON - UNANIMOUS STIPULATION REGARDING THE RATES TO BE DETERMINED FOR ENTERY TEXAS, INC. IN PUBLIC UTILITY COMMISSION DOCKET NO. 34800. WHEREAS, on or about September 26, 2007 Entergy Texas, Inc. ( "ETI ") filed a Statement of Intent with the City to increase electric rates in ETI Service Area by $107.5 million per year in addition to an expected $5 million annual increase to its miscellaneous service schedules resulting in a $112 million increase to customers; and WHEREAS, the City of Huntsville suspended the effective date to ETI's rates within its jurisdictional limits until at least September 28, 2008; WHEREAS, on or about September 26, 2007 ETI also filed an application with the Public Utility Commission of Texas to increase electric rates in the ETI Service Area by $107.5 million per year in addition to an expected $5 million annual increase in its miscellaneous service schedules resulting in a $112 million increase to customers; and WHEREAS, City has intervened at the Public Utility Commission with various other cities to review the rates, operations and services of an electric utility pursuant to their authority under the Public Utility Regulatory Act §33,025; WHEREAS, Community Associations of the Woodlands, Texas ( "CATW "), Entergy Texas, Inc. ( "ETI" or "the Company "), the Kroger Co. ( "Kroger "), Office of Public Utility Counsel ( "OPC "), Texas Legal Service Center ( "TLSC "), Texas Ratepayers Organization to Save Entergy ( "Texas ROSE "), and Wal -Mart Texas Stores, LP ( "Wal- Mart") have entered into a settlement with ETI and the Entergy Service Area Cities' Steering Committee has authorized the approval of the terms of settlement of ETI's rate case and recommends settlement to the Cities; WHEREAS, the settlement represents a fair compromise between ETI's filed rate request of $112 million and the Cities recommended rate reduction of $6.7 million; and WHEREAS, under the Company's request, as filed, the rate increase to customers would have been a 7.56% increase and the settled rate increase represents a 0.87% increase to customers during the first year beginning in October of 2008 and 2.08% increase to customers until the rates resulting from ETI's rate case to be filed by December 31, 2009 become effective; and WHEREAS, the settlement spreads the rate increase equally to all customer classes; NOW THEREFORE, BE IT RESOLVED 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 resolution are hereby in all things approved and adopted. Section 2. The City of Huntsville hereby reaffirms its support for the settlement terms in the Non - Unanimous Stipulation attached. Section 3. 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 4. This resolution shall become effective from and after its passage. PASSED AND APPROVED this 3rd day of June ATTEST: Ste nie Brim, City Secretary APPROVED AS TO FORM: Thomas A. L':. er, City Attorney J. Turner, Mayor