R2011-011 - 2011-01-24RESOLUTION NO. R2011 -11
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PEARLAND, TEXAS, PROVIDING NOTICE TO CENTERPOINT
ENERGY ENTEX REGARDING THE NON RENEWAL OF THE COST
OF SERVICE ADJUSMENT RATE SCHEDULE NO. COSA -3;
ESTABLISHING AN EFFECTIVE DATE FOR THIS RESOLUTION;
MAKING SUCH OTHER FINDINGS AND PROVISIONS RELATED
HERETO; CONTAINING A SAVINGS CLAUSE; AND PROVIDING FOR
THE EFFECTIVE DATE THEREOF.
WHEREAS, in 2008 the Railroad Commission of Texas approved a tariff for
CenterPoint Energy Entex and CenterPoint Energy Texas Gas, Texas Coast Division
"CenterPoint which tariff is referred to as the "Cost of Service Adjustment Rate
Schedule No. COSA -3" "COSA and
WHEREAS, the City as part of a the Texas Coast Utilities Coalition of cities
challenged the legal validity of the COSA tariff approved by the Railroad Commission of
Texas; and
WHEREAS, the 345 Judicial District Court of Travis County, Texas in Cause
No. D- 1- GN -09- 000982, Texas Coast Utilities Coalition vs. The Railroad Commission of
Texas, Judge Stephen Yelenosky presiding, issued a Judgment concluding that the
Railroad Commission did not have the authority to impose the COSA tariff on the City
and did not have the authority to approve a COSA tariff in those areas where the
Railroad Commission had original jurisdiction; and
WHEREAS, the Railroad Commission of Texas has sought review of Judge
Yelenosky's judgment in the Austin Third Court of Appeals, and the effect of Judge
Yelenosky's judgment has been stayed pending the appeal; and
WHEREAS, Part A of the COSA tariff approved by the Railroad Commission of
Texas provides that the COSA tariff is authorized for an initial implementation period of
RESOLUTION NO. R2011 -11
three (3) years commencing with the Company's filing under the COSA tariff for the
calendar year 2008, effective August 1, 2009, and ending with the implementation of the
rate adjustment, if any, for the calendar year 2010, effective August 1, 2011, and shall
automatically renew for successive three year periods unless either the Company or the
regulatory authority having original jurisdiction gives written notice to the contrary to the
other by February 1, 2011, or February 1, of the third filing year of any succeeding three
year renewal period; and
WHEREAS, the City continues its belief that the COSA tariff is outside the legal
bounds of the Gas Utility Regulatory Act and desires to give notice to CenterPoint that
the City is not renewing the COSA tariff for another three -year period; now therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS:
Section 1 That the facts contained in the preamble of this Resolution are
determined to be true and correct and are hereby adopted as part of this Resolution.
Section 2 CenterPoint is hereby notified that the COSA tariff shall not renew
for another three -year period and following CenterPoint's filing under the COSA tariff, if
any, on May 1, 2011, CenterPoint shall not implement any further changes in rates or
otherwise implement any provisions of the COSA tariff within the City.
Section 3 That to the extent CenterPoint implements any change in rates in
contradiction of this Resolution, in addition to any penalties that may apply, CenterPoint
shall refund any base rate increase with interest at the rate being earned on customer
deposits.
Section 4 The effective date for this Resolution is the date of its adoption by
the City Council.
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RESOLUTION NO. R2011 -11
Section 5 All conditions precedent to the adoption of each of the foregoing
sections herein have been complied with under law.
Section 6 If any section or part of any section, paragraph, or clause of this
Resolution is declared invalid or unconstitutional for any reason, such declaration shall
not be held to invalidate or impair the validity, force, or effect of any other section or
sections, part of section, paragraph, or clause of this Resolution.
Section 7 The City Council officially finds, determines, recites and declares
that a sufficient written notice of the date, hour, place and subject of this meeting of the
City Council was posted at a place convenient to the public at the City Hall of the City
for the time required by law preceding this meeting, as required by the Open Meetings
Law, Chapter 551, Texas Government Code; and that this meeting has been open to
the public as required by law at all times during which this Resolution and the subject
matter thereof has been discussed, considered and formally acted upon. The City
Council further ratifies, approves and confirms such written notice and the contents and
posting thereof.
Section 8 The City Secretary is hereby directed to send a true and copy of this
Resolution to Scott E. Doyle, Regional Vice President Gas Operations, CenterPoint
Energy, 1111 Louisiana Street, Houston, Texas 77002 and to Alfred R. Herrera, Herrera
Boyle, PLLC, Suite 1250, 816 Congress, Austin, Texas 78701.
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RESOLUTION NO. R2011 -11
PASSED, APPROVED and ADOPTED this the 24 day of .January, A.D., 2011.
TOM REID
MAYOR
A TTEST: w
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rY
SECRET
APPROVED AS TO FORM:
DARRIN M. COKER
CITY ATTORNEY