CC Resolution No. 2117 - NonRenewalofCOSATariff RESOLUTION NO. 2117
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BAYTOWN,TEXAS,
PROVIDING NOTICE TO CENTERPOINT ENERGY ENTEX REGARDING THE
NON-RENEWAL OF THE COST OF SERVICE ADJUSTMENT RATE SCHEDULE
NO. COSA-3; MAKING SUCH OTHER FINDINGS AND PROVISIONS RELATED
HERETO; CONTAINING A SAVINGS CLAUSE; AND PROVIDING FOR THE
EFFECTIVE DATE THEREOF.
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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 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 345t' 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 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 1st
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 BAYTOWN,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: All conditions precedent to the adoption of each of the foregoing sections
herein have been complied with under law.
Section 5: 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 6: The City Clerk is hereby directed to send a true and correct copy of this
resolution to Scott E. Doyle, Regional Vice President Gas Operations, CenterPoint Energy, 11 I I
Louisiana Street, Houston, Texas 77002 and to Alfred R. Herrera, Herrera & Boyle, PLLC, 816
Congress, Suite 1250, Austin, Texas 78701.
Section 7: This resolution shall take effect immediately from and after its passage by
the City Council of the City of Baytown.
INTRODUCED, READ and PASSED by the affirmative vote of the Ci ouncil of the City of
Baytown this the 271h day of January, 2011.
EPHEN H. DONCARLOS,Ma or
&ICITA
RYSCH,Cit Ierk
APPROVED AS TO FORM:
eIGNY1
ACIO RAMIREZ, SR., V Attorney
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