AN ORDINANCE BY
THE CITY OF BASTROP, TEXAS (“CITY”) TO ADOPT A SETTLEMENT
BETWEEN THE CITY AND CENTERPOINT ENERGY ENTEX (“CENTERPOINT”)
WITH REGARD TO CENTERPOINT’S STATEMENT OF INTENT TO INCREASE
RATES WHICH WAS FILED ON JUNE 30, 2005 AND UPDATED ON SEPTEMBER 21,
2005; AUTHORIZING THE REPEAL OF ORDINANCES AND RESOLUTIONS TO THE
EXTENT THEY ARE INCONSISTENT WITH THE SETTLEMENT; DETERMINING THAT
THIS ORDINANCE WAS PASSED IN ACCORDANCE WITH THE REQUIREMENTS OF THE
TEXAS OPEN MEETINGS ACT; AND DECLARING AN EFFECTIVE DATE
WHEREAS,
on June 30, 2005, CenterPoint filed a Statement of Intent to Increase
Rates with the City which was later updated with a four volume filing;
and
WHEREAS,
CenterPoint implemented its Statement of Intent to increase rates
on November 3, 2005; and
WHEREAS,
the City contested the legality of CenterPoint’s implementation
of its Statement of Intent to Increase Rates; and
WHEREAS,
the City ordered CenterPoint to cease and desist the charging of the
higher rates; and
WHEREAS,
CenterPoint appealed the City’s order to cease and desist charging
the higher rates to the Railroad Commission of Texas; and
WHEREAS,
CenterPoint appealed to the Railroad Commission similar orders by
20 cities that comprise, along with the City, the Alliance of CenterPoint
Municipalities (“ACM”); and
WHEREAS,
the litigation involving the ACM Cities and CenterPoint over the legality
of CenterPoint’s rate increase could continue at the Railroad
Commission and through the Texas district and appellate courts for
up to four years; and
WHEREAS,
the outcome of the litigation between CenterPoint and the ACM cities
over the legality of CenterPoint’s rate increase could not be
predicted with complete accuracy; and
WHEREAS,
the Settlement requires that CenterPoint provide detailed and complete
notice in a local newspaper of any proposed increase in base rates;
and
WHEREAS,
the Settlement prohibits any possibility of an increase in gas rates
for the next three years due to changes in costs for non-fuel related
expenditures, including any expenditures for additional pipelines
or the relocation or replacement of pipeline facilities; and
WHEREAS,
the Settlement provides for a nine dollar a year reduction in the
customer charge for residential customers; and
WHEREAS,
the Settlement provides that CenterPoint will not file, after the
three year rate freeze expires, at the Railroad Commission for an
increase in base rates in the unincorporated areas at the Railroad
Commission before it files with the City for an increase in such rates;
and
WHEREAS,
the Settlement provides that legal or consultant expenses of the ACM
Cities, up to $230,000, will be borne by CenterPoint’s shareholders,
not its ratepayers; and
WHEREAS,
the Settlement provides that CenterPoint’s rate case expenses
before the ACM Cities or at the Railroad Commission related to its
efforts to implement its Statement of Intent to increase rates will
be borne by CenterPoint’s shareholders, not its ratepayers;
and
WHEREAS,
the Settlement provides that the ACM Cities will be paid the total
of $414,000 to settle all other outstanding claims against CenterPoint,
which money will be distributed to the ACM Cities to benefit the public
as determined by the respective ACM City Councils; and
WHEREAS,
the Settlement as a whole is in the public interest.
NOW THEREFORE BE
IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BASTROP, TEXAS THAT:
SECTION 1.
The statements set forth in the preamble are adopted as statements
of fact.
SECTION 2. The City Council finds that the Settlement
Agreement, which is attached hereto is in the public interest and
is hereby adopted in all respects.
SECTION 3. To the extent that any resolution or ordinance
previously adopted by the Council is
inconsistent with the Settlement Agreement, it is hereby repealed.
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.
READ and Acknowledged on First Reading on the 25th day of April 2006.
READ and Adopted on Second Reading on the 9th day of May 2006.
APPROVED:
By: Tom Scott
Mayor
ATTEST:
Teresa Valdez
City Secretary
APPROVED
AS TO FORM:
Jo-Christy Brown
City Attorney
