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<br />c <br />1.."'1' : <br /> <br />~Hb <br />~$-''' Ci':: <br />~ I CL <br />l\,...._ ..a: <br /> <br />I <br /> <br />I <br /> <br />C"? <br /> <br />(f)~l <br /> <br />o . <br />U ...J <br />r'.- J <br /> <br />;(0; ~.: <br />t~~..-. L ..:.-. !. <br />.."-' ^' <br />~~~~;ih-- <br />,:~=~ <br />-,0 V' D <br />-' . r <br />-.- '-; <br /> <br />AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF <br />SAN MARCOS, TEXAS APPROVING A SETTLEMENT <br />AGREEMENT BETWEEN THE ALLIANCE OF CENTERPOINT <br />MUNICIPALITIES AND CENTERPOINT ENERGY ENTEX <br />WITH REGARD TO CENTERPOINT'S RATE INCREASE <br />REQUEST FILED WITH THE CITY ON JUNE 30, 2005; <br />INCLUDING PROCEDURAL PROVISIONS; DECLARING AN <br />EMERGENCY; AND DECLARING AN EFFECTIVE DATE <br /> <br />29. <br /> <br />01 <br /> <br />ORDINANCE NO. 2006 - 1 5 <br /> <br />v::> <br />~ <br />C::=l <br />C'-..l <br /> <br />c: c: <br /> <br />RECITALS: <br /> <br />1. WHEREAS, on June 30, 2005, CenterPoint Energy Entex ("CenterPoint") filed a <br />Statement of Intent to Increase Rates with the City, later updated with a four volume filing; and <br /> <br />2. WHEREAS, CenterPoint implemented its increased rates on November 3, 2005; and <br /> <br />3. WHEREAS, the City contested the legality of CenterPoint's increased rates, and the <br />City Council, by Ordinance adopted on December 6, 2005, ordered CenterPoint to cease and <br />desist the charging of the higher rates; and <br /> <br />4. WHEREAS, CenterPoint appealed to the Railroad Commission of Texas the City's <br />December 6, 2005 Ordinance, together with similar orders by 20 other cities that comprise, along <br />with the City, the Alliance of CenterPoint Municipalities ("ACM"); and <br /> <br />4. WHEREAS, the dispute involving the ACM Cities and CenterPoint over the legality of <br />CenterPoint's rate increase could continue at the Railroad Commission and through the Texas <br />district and appellate courts for several years, and the outcome cannot be predicted; and <br /> <br />5. WHEREAS, Jim Boyle, the attorney for the ASM Cities, negotiated the settlement <br />agreement attached to this ordinance (the "Settlement Agreement") with representatives of <br />CenterPoint; and <br /> <br />6. WHEREAS, the Settlement Agreement prohibits an increase in gas rates for the next <br />three years due to changes in costs for non-fuel related expenditures, including any expenditures <br />for additional pipelines or the relocation or replacement of pipeline facilities; and <br /> <br />7. WHEREAS, the Settlement Agreement provides for a $.75/month ($9.00/year) <br />reduction in the customer charge for residential customers from the increased rates implemented <br />by CenterPoint; and <br /> <br />8. WHEREAS, the Settlement Agreement provides that after the three year rate freeze <br />expires, CenterPoint will not file a request at the Railroad Commission for an increase in base <br />rates in the unincorporated portions of its service area before it files a request with the City for an <br />increase in the rates; and <br />