AN ORDINANCE WHICH
SHALL CONSTITUTE AN ORDER BY THE CITY OF BASTROP, 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. 2005-34; 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 Bastrop ("City") a request to increase base rates; and
WHEREAS, ENTEX requested that base rates for the
typical residential customer be increased by 41.12% or approximately
$4.00 per month and ENTEX requested that service charges, like the
charge to initiate service, be increased by 715.9%; and
WHEREAS, ENTEX is required by law to publish notice
of its proposed increase in a newspaper of general circulation in
Bastrop County, Texas; 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 Bastrop County, Texas; 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 BASTROP, TEXAS THAT:
SECTION 1. FINDINGS
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Finding
No. 1: |
ENTEX
is unlawfully and illegally charging base rates in excess of its
lawful rates. |
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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. |
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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. |
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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. |
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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. |
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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. |
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Finding
No. 7: |
ENTEX
made a filing with the City on or about October 5, 2005, which
made some of the information provided earlier obsolete or inaccurate. |
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Finding
No. 8: |
ENTEX
has refused to answer any requests for information (discovery)
with regard to its October 5, 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 within ten (10)
days of the effective date of this ordinance.
SECTION 4. REPORT
ENTEX
shall submit the report called for by Section 5 of Resolution No.
200534 to the City Manager within ten (10) days of the effective date
of this ordinance.
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 (10) 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 seventytwo hours of the adoption of this Ordinance
along with a copy by regular mail to Mr. Harder at 1 1 11 Louisiana,
Houston, Texas 77005.
READ AND ACKNOWLEDGED this the 13th day of December 2005.
READ AND APPROVED this the 10th day of January 2006.
APPROVED:
By: Tom Scott
Mayor
ATTEST:
Teresa Valdez
City Secretary
APPROVED
AS TO FORM:
Jo-Christy Brown
City Attorney
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