Ordinance 2016-01 - Ord. 2016-01 - deny Entergy distribution cost recovery factor - signed 10-6-15ORDINANCE NO. 2016 -01
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 4, 2015; 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 4, 2015, Entergy Texas, Inc. ( "Entergy") filed an Application for
Authority to Amend the existing 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;
WHEREAS, the proposed Distribution Cost Recovery Factor rates proposed by Entergy Texas, Inc. would
increase customer rates in the Entergy Service Area by $6.5 million per year above the current Distribution Cost
Recovery Factor surcharge;
WHEREAS, the jurisdictional deadline for the City to act in this rate matter is November 3, 2015;
WHEREAS, the expert utility rate consultants retained to review the Company's Distribution Cost Recovery
Factor rates on behalf of the City have made preliminary findings that Entergy has incorrectly calculated the
proposed Distribution Cost Recovery Factor and overstated the claimed need for the rate increase requested. The
consultants' analyses support reductions to the Entergy request.
WHEREAS, the rate experts retained for the rate review have concluded that Entergy's rate filing request is
not supported;
WHEREAS, Entergy has failed to properly support and justify the rate class increase amounts for Entergy's
proposed class allocation of certain distribution costs;
WHEREAS, the statutory deadline to act on Entergy's Distribution Cost Recovery Factor rate increase request
is November 3, 2015;
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, Texas, hereby denies the Entergy Distribution Cost Recovery Factor rate
increase.
Section 3.
in total.
Entergy's Distribution Cost Recovery Factor rate increase application on file with the City is denied
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.
PASSED AND APPROVED this 6th day of October, 2015.
AT EST:
oodward, ity Secretary
ayor
TO FORM:
City Attorney