NOTICE IS HEREBY GIVEN that a Special Call Meeting of the City Council of the City of Orange, Texas
will be held on Monday, June 16, 2008 at 9:00 A.M. in the Orange Public Library Auditorium for the
following purpose, to-wit:
AGENDA
1. CALL TO ORDER Mayor
2. WORKSHOP
a) Conduct a workshop regarding Entergy Rate Case. Mayor/Council
3. RESOLUTIONS
a) Consider a resolution joining with other Entergy service
area cities in support of a non-unanimous stipulation
regarding the rates to be determined for Entergy Texas,
Inc. in Public Utility Commission Docket No. 34800. Staff: Oubre
4. ADJOURNMENT
Patricia Anderson, Deputy City Secretary
MEMORANDUM
To: Council
From: Shawn Oubre
Date: June 6, 2008
Subject: Entergy Rate Increase
On September 26, 2007, Entergy Texas, Inc. (ETI) filed with the Public Utilities
Commission of Texas (Commission) a rate increase of $107.5 million dollars in addition
to an expected $5 million annual increase to its miscellaneous service schedulers
resulting in a $112 million increase.
The City of Orange participates in a consortium of other cities in the ETI territory and
hired Mr. Dan Lawton to represent its interests. Through a compromise, all parties have
agreed to what would have been a 7.56 percent increase to a 0.87 percent increase
beginning in October 2008 and a 2.08 percent increase in December 2009.
The approval of this Resolution acknowledges that the City is agreeable to the terms as
recommended by Mr. Lawton. This will then be presented to the Commission for
approval.
RESOLUTION
A RESOLUTION OF THE CITY COUNCIL OF ORANGE, TEXAS,
JOINING WITH OTHER ENTERGY SERVICE AREA CITIES IN
SUPPORT OF A NON-UNANIMOUS STIPULATION REGARDING THE
RATES TO BE DETERMINED FOR ENTERGY 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 the 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 Orange suspended the effective date of 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; and
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 Energy (“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 a 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 ORANGE, 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 Orange 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 Meetings Act, Texas
Government Code, Chapter 551.
Section 4. This resolution shall become effective from and after its passage.
PASSED AND APPROVED this _________ day of __________________, 2008.
_____________________________
William Brown Claybar, Mayor
ATTEST:
_______________________________
Kerry Kittrell, City Secretary
APPROVED:
_______________________________
City Attorney

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