The Administration & Regulatory Affairs Department (ARA) recommends that City Council adopt an ordinance authorizing participation with other Entergy Texas, Inc. (Entergy) service area cities in matters concerning Entergy before the Public Utility Commission of Texas (PUC or Commission) and the Federal Energy Regulatory Commission (FERC) during 2016. Entergy provides electric service to approximately 427,000 Texas retail customers. According to Entergy, they serve approximately 1,800 customers in the Kingwood area — 1,500 residential and 300 commercial customers. The City of Houston (City) exercises original jurisdiction over the rates, operations and services of Entergy under the provisions of the Public Utility Regulatory Act for customers within Houston city limits.
The City participates in numerous Entergy administrative and litigated proceedings, including contested cases related to utility-initiated rate adjustment filings, as a member of the Steering Committee of Cities (the Coalition), a group of similarly situated cities with Entergy customers within their city limits. Coordinating efforts maximizes the efficient use of resources and expertise in reviewing, analyzing, and investigating Entergy’s filings. Several proceedings are anticipated for the 2016 calendar year, including a possible base rate proceeding. The Coalition also anticipates Entergy will seek base rate revenue increases through incremental cost recovery mechanisms.
Houston ratepayers continue to benefit from participation in the Coalition. In the 2013 full base rate proceeding, Entergy Coalition member cities were instrumental in settling Entergy’s base rate request at an amount approximately $20 million less than the annual base rate revenue requested by Entergy. Coalition intervention in the 2011/2012 full base rate proceeding led to an approximate $88 million reduction to Entergy’s proposed requested rate increase — $112 million utility proposed increase versus the $24 million Commission awarded increase. All reasonable expenses associated with these proceedings are reimbursable by the utility, and have been reimbursed in past proceedings.
Adoption of the ordinance ensures the City’s continued participation in the Coalition for the remainder of the 2016 calendar year. Therefore, ARA recommends Council adopt an ordinance authorizing participation with other Energy service area cities in matters concerning Entergy Texas, Inc. before the PUC and FERC during calendar year 2016.
Departmental Approval Authority:
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Tina Paez, Director Other Authorization
Administration & Regulatory
Affairs Department