HomeMy WebLinkAboutRes 2004-05
RESOLUTION NO. 2004-05
A RESOLUTION DENYING RELIEF REQUESTED BY CENTERPOINT
ENERGY ENTEX, A DIVISION OF CENTERPOINT ENERGY RESOURCES
CORP., EFFECTIVE MAY 1,2004, SUBJECT TO POSSIBLE SETTLEMENT
AND FURTHER PROCEEDINGS, AND CONTAINING FINDINGS AND
PROVISIONS RELATING TO THE SUBJECT.
WHEREAS, on or about December 19, 2003, CenterPoillt El1ergy Elltex, a divisiol1 of
Cel1terPoint Energy Resources Corp., ("Entex") filed witll tIle City of West University Place,
Texas ("City") a Statemellt of Intent to cllange gas rates in various municipalities within tile
Harris, Montgomery and. Fort Bend County area effective February 1,2004 ("A.pplicatiol1"); and
WHEREAS, tIle City, by resollltion, extel1ded t]le effective date for 90 days to cooperate
. Wit11 otller similarly-sitllated cities alld create a Steerillg Committee of SllCll cities to stu.dy tile
appropriatel1ess and reasonablel1ess of tIle El1tex reqllest;
WHEREAS, Entex's Application is based 011 a settleluent reacl1ed with the City of
Houston and not on cost of service revenue and expense il1formation specific to tIle individual
cities included ill tIle Application; and
WHEREAS, Entex is seeking a disprOpoltionate amount of its proposed il1creased
revenues from Cllstomers in the Application Cities when cOlnpared to il1creased revenlles
approved ill the City of Houston; and
WHEREAS, Entex's rates inclllde a payment pel1alty provision tllat produces revenues
for wl1ich there is no cost correlatiol1 and that falls disproportiollately on low cOnS1Ul1.ptioll
customers; and
WHEREAS, Entex' s proposed allocation of costs amollg custoluers aIld rate desigl1 11ave
not been shown to be reasollable; and
WHEREAS, Cities 11ave not l1ad adequate time to tll0rOtlgllly evaluate the Applicatioll
because of a paucity of cost of service data; alld
WHEREAS, Elltex has an el1virol1s (areas outside municipal jurisdiction) rate filing
pending at the Railroad Commission covering tIle same request and data presented in its
A,pplication; and
WHEREAS, Elltex has tIle sole discretion to extel1d its effective date to eliluinate tile
necessity of tile City having to act 011 the rate request prior to May 1, 2004 al1d tllere.by permit
meaningful evaluation of tIle rate request and settlemel1t discussions; atld
WHEREAS, Elltex has all obligatiol1 to .pay reasonable rate case expenses illcllrred by
Cities.
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NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF TI-IE CITY OF
WEST UNIVERSITY PLACE:
1. Tllat the Elltex request for gas lltility rate relief is in all nlatters denied effective
May 1, 2004, unless Entex extellds its effective date prior to May 1, 2004.
2. If Entex extends its effective date for proposed rates, tIle effective date of this
resollltion denying rate relief is postponed the same nUlnber of days as tIle exte.nsiol1 granted by
Entex.
3. SllOllld tIle Steering COlllll1ittee of Cities reacll a settlelnel1t witll Elltex, tllis
resolutiol1 will be superceded, llpOl1 passage of tIle rate ordil1ance tllat incorporates tile
settlelnel1t. (TIlls does not preclllde tile ad.option of any other rate ordinallce .before tIle above-
mentioned effective date.)
4. Elltex sllall promptly pay Cities' rate case expenses.
,-
Passed, approved, adopted and signed this ,$ #day of ~ ,2004.
M~~:X ~
ATTEST (seal):
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CenterPointTM
Energy
Entex
30-04-04Al0:S3 PAID
CenterPoint Energy Entex
1111 Loujsiana Street
HoustonJ TX 77002-5231
P.O. Box 2628
Houston, TX 77252-2628
April 30, 2004
Ms~ Kay Holloway, City Secretary
City of West Un.iversity Place
3800 University Blvd.
West University Place, TX 77005
Re: Extension of Effective Date for Proposed Rates of CenterPoint Energy
El1tex
Dear Ms. Holloway:
Cel1terPoint Energy Entex, ("the Company") hereby extends tIle effective date for
proposed rates from May 1, 2004 to June 1, 2004~ Accordingly, the effective date of Resolution
N.o. 2004-05 is postpon.ed to June 1, 2004, the date of the final decision by the City den.yin.g
Entex's rate application.
Please d.o not hesitate to contact me if you have any questions about this filing~
CJH:yt
c: Mr~ Burt Ballanfant, Mayor
Mr~ Jim Dougherty, City Attorney
Mr. Geoffrey M~ Gay
Ms~ Georgianna Nichols
Mr. George Hepburn
Mr. Dan Renner, Clark, Thomas & Winters
Mr. Paul Ruxin, Jones Day