February 13, 2023 REGULAR MEETING OF THE CITY COUNCIL OF THE
CITY OF NEDERLAND
4:30 p.m. February 13, 2023
1. MEETING
The meeting was called to order at 4:30 p.m. by Mayor Albanese at the Nederland City
Office Building, 207 N. 12th Street, Nederland, Texas. See attached for quorum.
The following statement was posted:
"PURSUANT TO SECTION 30.07, PENAL CODE (TRESPASS BY LICENSE HOLDER
WITH AN OPENLY CARRIED HANDGUN), A PERSON LICENSED UNDER
SUBCHAPTER H, CHAPTER 411, GOVERNMENT CODE (HANDGUN LICENSING
LAW), MAY NOT ENTER THIS PROPERTY WITH A HANDGUN THAT IS CARRIED
OPENLY."
2. INVOCATION AND PLEDGE OF ALLEGIANCE
The invocation was led by Randy Sonnier, Councilmember Ward III and the Pledge of
Allegiance was lead by a Veteran of Foreign Wars member.
3. CONSENT AGENDA - All consent agenda items listed are considered to be routine by
the City Council and will be enacted by one motion. There will be no separate
discussion of these items unless a councilmember so requests, in which event the item
will be removed from the Consent Agenda and considered separately.
A motion was made by Councilmember Sonnier and seconded by Mayor Pro Tern Root to
approve the Consent Agenda Item "a thru c" as presented. MOTION CARRIED.
AYES: Mayor Albanese, Councilmembers Austin, Root, Sonnier, and Guillot.
NOES: None.
Attending remotely via Zoom: Mayor Pro Tern Root.
a. Minutes - January 23, 2023 regular meeting
b. Consider action approving Resolution No. 2023-01, ratifying the action of the
Nederland Economic Development Corporation Board of Directors in regard to
the purchase of 1132 Atlanta Avenue.
c. Consider action approving Ordinance No. 2023-03, rescinding Ordinance No.
2022-06, Tree Clearance Ordinance.
4. REGULAR AGENDA
a. A motion was made by Councilmember Guillot and seconded by Councilmember
Sonnier to approve a Proclamation recognizing Violence in the Workplace.
MOTION CARRIED.
AYES: Mayor Albanese, Councilmembers Austin, Root, Sonnier, and Guillot.
NOES: None.
Attending remotely via Zoom: Mayor Pro Tern Root.
b. A motion was made by Councilmember Sonnier and seconded by Councilmember
Guillot to receive the quarterly Hotel Occupancy Tax Fund financial report from the
Nederland Chamber of Commerce. MOTION CARRIED.
AYES: Mayor Albanese, Councilmembers Austin, Root, Sonnier, and Guillot.
NOES: None.
Attending remotely via Zoom: Mayor Pro Tern Root.
Minutes continued, February 13, 2023
c. A motion was made by Councilmember Austin and seconded by Mayor Pro Tern
Root to approve Ordinance No. 2023-04, authorizing participation with other
Entergy service area cities in matters concerning Entergy Texas, Inc. MOTION
CARRIED.
AYES: Mayor Albanese, Councilmembers Austin, Root, Sonnier, and Guillot.
NOES: None.
Attending remotely via Zoom: Mayor Pro Tern Root.
d. A motion was made by Mayor Pro Tern Root and seconded by Councilmember
Guillot to re-appoint Brandin Shaw to the Parks Advisory Board. MOTION
CARRIED.
AYES: Mayor Albanese, Councilmembers Austin, Root, Sonnier, and Guillot.
NOES: None.
Attending remotely via Zoom: Mayor Pro Tern Root.
e. Discussion was held regarding a public education campaign regarding feeding of
ducks in public parks. Angela Fanette, Parks and Recreation Director, stated that
the continuous feeding of the ducks affects their migratory patterns. The best way
to address this issue is to educate the public on why feeding the waterfowl is not
good for them or the environment.
No action is necessary on this item.
f. A motion was made by Councilmember Austin and seconded by Councilmember
Sonnier to approve Change Order No. 1 - Nederland Swimming Pool Deck project.
MOTION CARRIED.
AYES: Mayor Albanese, Councilmembers Austin, Root, Sonnier, and Guillot.
NOES: None.
Attending remotely via Zoom: Mayor Pro Tern Root.
g. A motion was made by Councilmember Austin and seconded by Councilmember
Guillot to authorize the reissuance of Request for Proposals for the Operation of
the Nederland Swimming Pool. MOTION CARRIED.
AYES: Mayor Albanese, Councilmembers Austin, Root, Sonnier, and Guillot.
NOES: None.
Attending remotely via Zoom: Mayor Pro Tern Root.
h. A motion was made by Councilmember Guillot and seconded by Mayor Pro Tern
Root to award bid for the Doornbos Park Parking Lot Rehabilitation project.
MOTION CARRIED.
AYES: Mayor Albanese, Councilmembers Austin, Root, Sonnier, and Guillot.
NOES: None.
Attending remotely via Zoom: Mayor Pro Tern Root.
i. A motion was made by Councilmember Austin and seconded by Mayor Pro Tern
Root to approve a request from Buckstin Brewery to operate a beer garden March
15th _ 18th.. MOTION CARRIED.
AYES: Mayor Albanese, Councilmembers Austin, Root, Sonnier, and Guillot.
NOES: None.
Attending remotely via Zoom: Mayor Pro Tern Root.
j. A motion was made by Mayor Pro Tern Root and seconded by Councilmember
Guillot to approve the Re-Plat request of 1604 27th Street (part of Lot 4, Block
18H, Port Arthur Land Company). MOTION CARRIED.
AYES: Mayor Albanese, Councilmembers Austin, Root, Sonnier, and Guillot.
Minutes continued, February 13, 2023
NOES: None.
Attending remotely via Zoom: Mayor Pro Tern Root.
k. A Motion was made by Councilmember Austin and seconded by Councilmember
Sonnier to set a Joint Public Hearing for the purpose of receiving comments
regarding the request to re-zone property located at 2120 Helena Avenue (the
corner of Helena Avenue and 22nd Street), described as the SW 4 Lot 1, Block 2 of
Cottage Groves from property zoned C-2 (neighborhood retail) to R-3 (multi-
family medium density) for the construction of apartments. MOTION CARRIED.
AYES: Mayor Albanese, Councilmembers Austin, Root, Sonnier, and Guillot.
NOES: None.
Attending remotely via Zoom: Mayor Pro Tern Root.
1. A discussion was held regarding a request to re-zone property located at the
northwest corner of Highway 69 frontage road and the private access road known
as Parkway Road, described as Tract II, 1.3295 acres of land being part of Lots
2&3, Block 20, Range I of Port Arthur Land Company from property zoned I-1
(light industrial) to R-3 (multi-family medium density) for the construction of
apartments.
City Manager, Chris Duque, recommended denial of the request and stated that the
rezoning would not be the best use of said property. Councilmember Sonnier made
a motion to approve the request. A second motion was not made, therefore the
motion died for lack of a second motion. Hani Tohme with Golden Triangle
Consulting Engineers, 85 I10 Frontage Road, Suite 204A, Beaumont, Texas, spoke
on behalf of Iyad Shalabi, the owner of the property. He stated the owner now
wants to build 11 luxury apartments instead of a light industrial building. George
Wheeler, Building Official, suggested that the Council could make the approval of
the request contingent upon the developer meeting all of the requirements
regarding sewer/water lines, drainage and lift station before a building permit is
issued.
Councilmember Sonnier asked to amend his previous motion to approve the
rezoning request. A motion was made by Councilmember Sonnier and seconded by
Councilmember Guillot to approve the request to rezone the property contingent
upon the developer meeting all of the utility requirements by DD7 and the City.
MOTION CARRIED.
AYES: Mayor Albanese, Councilmembers Austin, Sonnier, and Guillot.
NOES: Mayor Pro Tem Root.
Attending remotely via Zoom: Mayor Pro Tem Root.
5. COMMUNICATION
City Manager's Report:
a. Miscellaneous:
• The Chamber Coffee will be tomorrow, February 14th at the NHF office.
• The City will be closed Monday, February 20th. The garbage route will be
delayed one day due to the holiday.
• Rob Woods will have an update from TxDot at the next meeting.
6. ADJOURN
There being no further business a motion was made by Mayor Albanese to adjourn the
meeting at 5:15 p.m.
,
Minutes continued, February 13, 2023
\„„"":111111,10„
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(k." - ���'F�' +on Alban`--se, Mayor
-C;P4v i�.�" City of Nederland, Texas
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ATTEST: 2 '..•%A.,44 •'
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OW U�u .u� ,, imilww
Jon Underwood, City Clerk
City of Nederland, Texas
CITY OF NEDERLAND
COUNCIL MEETING ATTENDANCE SHEET
NAME TITLE PRESENT ABSENT
Don Albanese Mayor ✓
Talmadge Austin Council Member—Ward I ✓
Sylvia Root Council Member—Ward II ✓
Randy Sonnier Council Member—Ward III
David Guillot Council Member—Ward IV
Chris Duque City Manager J
Joni Underwood City Clerk
Jesse Branick City Attorney
Cheryl Dowden Director of Finance ✓
Gary Porter Police Chief ✓
Terry Morton Fire Chief ✓
Robert Woods Director of Public Works
George Wheeler Building Official
Molli Hall _ Librarian
Holly Guidry Human Resources Director
Angela Fanette Parks Director ✓
Pe72,e
Don Albanese, Mayor
QuatE-04
Joni I' derwood, City Clerk
Date
' ORDINANCE NO. 2023-03
AN ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF NEDERLAND, TEXAS, RESCINDING
ORDINANCE NO. 2022-06 THAT REVISED CHAPTER
54. HEALTH AND SANITATION WITH TREE
CLEARANCE REGULATIONS ACROSS CITY STREETS,
REPEALING ALL SECTIONS OF THIS ORDINANCE
WHICH MIGHT BE IN CONFLICT WITH THIS
ORDINANCE, AND PROVIDING AN EFFECTIVE DATE
r
WHEREAS,the City Council approved Ordinance No. 2022-06 on February 28,
2022; and
WHEREAS,the City Council desires to rescind Ordinance No. 2022-06.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE
CITY OF NEDERLAND,TEXAS THAT:
Section I. '
The above recitals are hereby found to be true and correct and
incorporated herein for all purposes.
Section II.
Ordinance No. 2022-06 is hereby rescinded.
Section III. Repealing Clause
All ordinances or parts of ordinances inconsistent with the terms of this
ordinance are hereby repealed; provided, however,that such repeal shall only
to the extent of such inconsistency and in all other respects this ordinance shall
be cumulative of other ordinances regulating and governing the subject matter
covered by this ordinance.
Section IV. Effective Date
This ordinance shall become effective from and after its passage and
publication as provide by law.
PASSED AND APPROVED BY THE CITY COUNCIL of the City of Nederland,
Texas this the 13TH day of FEBRUARY, 2023.
az( 1,7/. ..4.4.9-2
/Don Albanese, Mayor
ATTEST:
Joni Underwood, City Clerk o
APPROVED AS TO FORM AND LEGALITY: F.v:`� s' F.
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n;: � ✓:Z
gOG,�l,•�.v1 ;��0
Je =n" k, City Attorney "'„mu,w`,
RESOLUTION NO. 2023-01
A RESOLUTION OF THE NEDERLAND CITY
COUNCIL RATIFYING THE ACTION OF THE
NEDERLAND ECONOMIC DEVELOPMENT
CORPORATION
WHEREAS,the present and prospective right to gainful employment and general welfare
of the people of Nederland require as a public purpose the promotion and development of new
and expanded business enterprises;and
WHEREAS, the existence, development, and expansion of business, commerce, and
Industry are essential to the economic growth of Nederland and to the full employments,welfare,
and prosperity of its citizens;and
WHEREAS, the means and measures authorized by the Texas Legislature and the
assistance provided in the one-quarter (1/4) of one percent (1%) sales tax for economic
development are in the public interest and serve a public purpose in promoting the welfare of
the citizens of the City economically by the securing and retaining of business enterprises and
the resulting maintenance of a higher level of employment,economic activity,and stability;and
WHEREAS, the citizens of the City of Nederland provided for the creation of the
Nederland Economic Development Corporation by popular vote in a duly authorized election to
serve the public purposes herein described;and
WHEREAS, the Nederland Economic Development Corporation is authorized and
empowered under applicable state law,its charter,bylaws and by board approval,to aid in the
development of business enterprises by offering incentives to prospective new and expanding
businesses.
NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF NEDERLAND,
TEXAS THAT:
The action of the Board of Directors of the Nederland Economic Development
Corporation ("Board")relating to the purchase of 1132 Atlanta Avenue(legal description:Lt 26
Bik 18 Nederland)in an aggregate maximum amount of not more than Seventy Three Thousand
Seven Hundred Ninety-Eight dollars($73,798.00),in accordance with the terms and conditions
as prescribed by the Board,is hereby ratified.
PASSED AND APPROVED ON THE FIRST READING BY THE CITY COUNCIL OF THE CITY OF
NEDERLAND,TEXAS this the 23rd day of January,2023 at which meeting a quorum was present
and voting.
off,` FND''
EFS,
=o:r ` �& on Albanese,Mayor
, .,•° City of Nederland,Texas
ATTEST: °•. • �`�'�
i.Uwei/Jldni
Joni Uncjbrwood,City Clerk
City of Nederland,Texas
f
APPROVED AS TO FORM AND LEGALITY:
Jess ck,City Attorney
Ci • Nederland,Texas
e.
PASSED AND APPROVED ON THE SECOND READING BY THE CITY COUNCIL OF THE CITY
OF NEDERLAND, TEXAS this the l3' day of 1-eo vary , 2023 at which meeting a
quorum was present and voting.
.1_ y ,`
'on Albanese,Mayor' ,
City of Nederland,Texas
ATTEST:
U/q, .t/5110 /
Joni Un rwood,City Clerk
City of Nederland,Texas �.�"` " D%�.,,,�.
APPROVED AS TO FORM AND LEGALITY: 'ti ((1" \Q� L'
Je-se Br: 'cfk,CityAttorney �''�OF]EF��`�.
ity o•Nederland,Texas "`f"""""
ORDINANCE NO. 2023-04
AN ORDINANCE OF THE CITY COUNCIL OF
NEDERLAND, TEXAS, AUTHORIZING
PARTICIPATION WITH OTHER ENTERGY
SERVICE AREA CITIES IN MATTERS
CONCERNING ENTERGY TEXAS, INC. AT THE
PUBLIC UTILITY COMMISSION OF TEXAS IN
2023; AUTHORIZING THE HIRING OF
LAWYERS AND RATE EXPERTS; AUTHORIZING
THE CITY'S PARTICIPATION TO THE FULL
EXTENT PERMITTED BY LAW AT THE PUBLIC
UTILITY COMMISSION OF TEXAS; FINDING
THAT THE MEETING COMPLIES WITH THE
OPEN MEETINGS ACT; AND DECLARING AN
EFFECTIVE DATE
WHEREAS, Cities have exclusive original jurisdiction over rates,
operations, and services of an electric utility in areas In the municipality
pursuant to Tex. Util. Code § 33.001; and
WHEREAS, Cities have standing in each case before the Public Utility
Commission of Texas that relates to an electric utility providing service in the
municipality pursuant to Tex. Util. Code§ 33.025; and
WHEREAS, Entergy Texas, Inc. ("ETI" or"Company") is expected to
litigate rate change requests in various proceedings before the Public Utility
Commission of Texas ("Commission") or before municipalities in 2023, which
may include (1) a base rate case, (2) rate proceedings or cost adjustments
such as a transmission cost recovery rider, a distribution cost recovery rider,
generation cost recovery rider, energy efficiency cost recovery factor, or
hurricane restoration cost or offset true-ups, and (3) various fuel cost refunds
or surcharges and reconciliations; and
WHEREAS, ETI is scheduled to file fuel factor proceedings at the
Commission in February and August 2023,and may file other fuel proceedings
to reconcile, refund or surcharge fuel charges; and
WHEREAS, ETI is expected to file its annual proceeding with the
c Commission to recover costs incurred in association with its Energy Efficiency
Plan as well as reconcile past costs; and
WHEREAS, Cities have the statutory right to set fair and reasonable
rates for both the Company and customers within Cities; and
WHEREAS, Cities are entitled to reimbursement by the utility of their
reasonable rate case expenses to participate in cases that are deemed rate
proceedings pursuant to Tex. Util. Code§ 33.023.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF
THE CITY OF NEDERLAND,TEXAS,THAT:
SECTION 1. The City of Nederland shall participate with other Cities to
intervene in ETI's various rate filings related to the various fuel cost surcharges
and reconciliations, any interim or incremental surcharge proceedings or
surcharge adjustments, and for any base rate adjustment proceedings or cost
of service adjustments on file with the Commission or with municipalities in
2023.
1
s
SECTION 2. The City of Nederland employs the Lawton Law Firm P.C.
to represent the City regarding the ETI rate matters before local regulatory
authorities and the Commission and any court of law and authorizes counsel
to employ rate experts as are recommended by the Cities'Steering Committee
to intervene in fuel or rate related proceedings at the Commission concerning
ETI's rates charged to Texas customers.
SECTION 3. All such actions shall be taken pursuant to the direction
of the Cities' Steering Committee. Cities' Steering Committee shall have
authority to retain rate consultants and lawyers. Cities' Steering Committee
shall direct the action of Cities'representatives in the above proceedings. The
Steering Committee is directed to obtain reimbursement from ETI of all
reasonable expenses associated with participation in said proceedings.
SECTION 4. The meeting at which this Ordinance was approved was
in all things conducted in strict compliance with the Texas Open Meetings Act,
Texas Government Code, Chapter 551.
SECTION 5. This Ordinance shall be effective from and after the date
of its passage.
PASSED AND APPROVED BY THE CITY COUNCIL of the City of
Nederland,Texas,this 13TH day of FEBRUARY, 2023.
LA -didie-c .
Don Albanese, Mayor
City of Nederland,Texas
ATTEST;
`ouunnpurr
lyd °'oF N °E?""
• `. *'�
Jo Underwood, City Clerk 1,�J `^•�-.O
City of Nederland,Texas E.£Y9 r'
APPROVED AS TO FORM AND LEGALITY: .' `°- ��
Je- e B :rick, City Attorney
Ci of Hederland,Texas
2
THE LAWTON LAW FIRM, P.C.
12600 Hill Country Blvd.,Suite R-275•Austin,Texas 78738•512/322-0019•Fax:512/329-2604
January 25,2023
Via e-mail
Mr.Richard G.Baker Ms.Sharae Reed
City Attorney—City of Anahuac City Attorney—City of Beaumont
P.O.Box 10066 P.O.Box 3827
Liberty,Texas 77575 Beaumont,Texas 77704
Mr.Chris Boone Mr.Paul Fukuda
Interim City Manager—City of Beaumont City Attorney—Bridge City
P.O.Box 3827 City Attorney—Pine Forest
Beaumont,Texas 77704 260 Rachal
Post Office Box 846
Bridge City,Texas 77611
Mr.Scott Swigert Ms.Mary Ann Powell
City Manager—City of CIeveland City Attorney—City of Cleveland
907 E.Houston Wortham Tower,Suite 600
Cleveland,Texas 77327 2727 Allen Parkway
Houston,Texas 77019
Ms.Jennifer Jeude Mr.Gary Scott
Interim City Secretary—City of CIeveland City Attorney—City of Conroe
907 E.Houston P.O.Box 3066
Cleveland,Texas 77327 Conroe,Texas 77305
Mayor Nyla Akin Daihaus Amy L.Wade
City of Cut and Shoot City Secretary—City of Cut and Shoot
P.O.Box 7364 P.O.Box 7364
Cut and Shoot,Texas 77306 Cut and Shoot,Texas 77306
Attorney-CIient Privileged Communication 1
Mayor Caroline Wadzeck Ms.Kimberly Judge
City of Dayton City Manager—City of Dayton
117 Cook Street 117 Cook Street
Dayton,Texas 77535 Dayton,Texas 77535
Mr.Brandon Monk Mr.D.E.Sosa
City Attorney—City of Groves City Manager—City of Groves
4875 Parker Drive P.O.Box 3286
Beaumont,TX 77705 Port Arthur,Texas 77643
Ms.Tina Paez Ms.Yushan Chang
City of Houston Administration&Regulatory City of Houston Legal Department
Affairs Department(ARA) P.O.Box 368,Houston,Texas 77001-0368
611 Walker,13th Floor City Hall Annex,4th Floor
Houston,Texas 77002 900 Bagby
Houston,Texas 77002
Mr.Leonard Schneider Mr.Aron Kulhavy
City Attorney—City of Huntsville City Manager—City of Huntsville
City Attorney—City of Splendora 1212 Ave.M
Liles Parker PLLC Huntsville,Texas 77340
2261 Northpark Dr.,Suite 445
Kingwood,TX 77339
Mr.Brandon Davis Mr.Tom Warner
City Attorney—City of Liberty City Manager—City of Liberty
City Attorney—City of Dayton 1829 Sam Houston
1517 Trinity Liberty,Texas 77575
Liberty,Texas 77575
Mr.Alan P.Petrov Mr.Richard Tramm
City Attorney—City of Montgomery City Administrator—City of Montgomery
Johnson Petrov LLP 101 Old Plantersville Road
2929 Allen Parkway,Suite 3150 Montgomery,TX 77316
Houston,Texas 77019
Mr.Cary Bovey Mr.Jason Weeks
City Attorney—City of Navasota City Manager—City of Navasota
Bovey&Cochran,PLLC 200 E.McAlpine Street
2251 Double Creek Dr.,Suite 204 Navasota,Texas 77868
Round Rock,Texas 78664
Mr.Christopher Duque Mr.Jesse Branick
City Manager—City of Nederland City Attorney—City of Nederland
P.O.Box 967 221 Hwy.69 South,Suite 100
Nederland,Texas 77627 Nederland,Texas 77627
Attorney-Client Privileged Communication 2
Ms.EIizabeth Harrell Ms.Heather Neeley
City Secretary—City of Oak Ridge North City Manager—City of Oak Ridge North
27424 Robinson Road 27424 Robinson Road
Oak Ridge North,Texas 77385 Oak Ridge North,Texas 77385
Mr.Guy Goodson Mr.Mike Kunst
City Attorney—City of Orange City Manager—City of Orange
GERMER PLLC 812 North 16th Street
550 Fannin,Suite 400 P.O.Box 520
Beaumont,Texas 77701 Orange,Texas 77630
Mr.Rodney Price Mr.Jerry Hood
City Attorney—City of Rose City City Administrator—City of Pinehurst
P.O.Box 310 2497 Martin Luther King Jr.Drive
Vidor,Texas 77670 Orange,Texas 77630
Mr.Tommy Gunn Ms.Val Tizeno
City Attorney—City of Pinehurst City Attorney—City of Port Arthur
202 S.Border P.O.Box 1089
Orange,Texas 77630 Port Arthur,Texas 77641
Mr.Ronald Burton Mr.Lance Bradley
City Manager—City of Port Arthur City Attorney—City of Port Neches
P.O.Box 1089 P.O.Box 1148
Port Arthur,Texas 77641 Port Neches,Texas 77651
Mr.Andre'Wimer Mr.Larry L.Foerster
City Manager—City of Port Neches City Attorney—City of Roman Forest
P.O.Box 758 City Attorney—City of Panorama Village
Port Neches,Texas 77651 Darden,Fowler and Creighton,LLP
414 West Phillips,Suite 100
Conroe,Texas 77301
Ms.Kathie Reyer Mr.Solomon Freimuth
City Administrator—City of Shenandoah City Attorney—City of Silsbee
29955 TH-45 N. P.O.Box 186
Shenandoah,Texas 77381 Port Neches,Texas 77651
Ms.DeeAnn Zimmerman Mr.Alex Stelly
City Manager—City of Silsbee City Attorney—City of Sour Lake
105 South 3rd Street 2615 Calder Ave.,Ste.1070
Silsbee,Texas 77656 Beaumont,Texas 77702
Attorney-CIient Privileged Communication 3
Mr.Jack Provost Mayor Dorothy Welch
City Manager—City of Sour Lake City Attorney Leonard Schneider
625 Hwy 105 W City of Splendora
Sour Lake,Texas 77959 P.O.Box 1087
Splendora,Texas 77372
Mr.Robbie Hood Mr.Chris Leavins
City Manager-City of Vidor City Attorney—City of Vidor
1395 N.Main St. City Attorney—City of West Orange
Vidor,Texas 77662-3726 P.O.Box 4915
Beaumont,Texas 77704-4915
Mayor Randy Branch Mr.Michael S.Stelly
Mayor—City of West Orange City of West Orange,Texas
2700 Western Avenue 2700 Austin Avenue
West Orange,TX 77630 West Orange,TX 77630
Ms.Marissa Quintanilla
City Secretary—City of Willis
200 N.Bell
Willis,Texas 77378
Re: Annual Ordinance Authorizing Municipal Participation in
Regulatory Proceedings of Entergy Texas,Inc.in 2023
Dear Steering Committee of Cities located in Entergy Texas,Inc.'s Service Territory:
It is once again time to authorize municipal participation in regulatory rate proceedings
involving Entergy Texas, Inc. ("ETI"or"Company")before the Public Utility Commission of
Texas("PUCT"or"Commission").Attached is a proposed Ordinance for your consideration
to authorize participation in rate proceedings in 2023. Please forward the completed
Ordinance to us by email at danlawtonlawfirm ii gmail.com and
molly(a mavhaIlvandervoort.com.
The Steering Committee of Cities ("Cities") continues to play a crucial role in limiting
ETI's various requested rate increases to reasonable revenue levels.ETI filed a base rate case in
2022 which is expected to be resolved by settlement in the coming weeks.ETI originally requested
a$131.4 million or 11.20%base rate increase.The parties' agreement in principle authorizes a
$54 million or 4.6%increase over current base rates. Cities' efforts contributed significantly to
reducing the Company's initial proposal by 58.90%.Many of our consultants'recommendations
are reflected in the settlement terms.
The Company initiated fuel reconciliation proceedings in late-2022,which includes fuel
costs incurred during Winter Storm Uri in February 2021. We are reviewing the Company's
application carefully to ensure that its fuel expenditures have been reasonable and fair to
customers.The fuel reconciliation proceedings are expected to continue through summer of 2023.
Attorney-Client Privileged Communication 4
In addition, ETI recently filed an application for approval of a tariff that will allow
customers to participate in its Power Through distributed generation program.Under the Power
Through service, small gas-fired generators will be installed at commercial, industrial, and
potentially municipal customer premises.The size of the distributed generators will range from
100kW to 10 MW,depending on each participating customer's need and location.The generators
will serve the dual purpose of providing back-up generation for the host customer during system
outages and as an ETI system generation resource at all other times.
Finally,last year Cities participated in proceedings to approve the future construction of
ETI's Orange County Advanced Power Station ("OCAPS"),a 1,125 megawatt combined-cycle
gas turbine plant to be Iocated in Bridge City,Texas.The Commission adopted many of Cities'
recommendations and approved the OCAPS project over strong opposition from certain
intervening parties.The OCAPS facility will replace aging generation facilities at ETI's Sabine
Station and is expected to provide fuel cost-savings for customers over time by operating more
efficiently than older plants.
Looking forward to 2023, in addition to the proceedings from last year that are still
pending,i.e.,ETI's base rate case,the fuel reconciliation,and the Power Through proceedings,we
anticipate that the Company will, at minimum, file Transmission Cost Recovery Factor and
Distribution Cost Recovery Factor applications for interim cost recovery of investments made to
its transmission and distribution systems. The Company is also expected to file its annual
application to amend its Energy Efficiency Cost Recovery Factor and its semi-annual Fuel Factor
rate adjustments in February and August 2023.
The continued support of each of the Cities in the Steering Committee has been
instrumental in the successful regulation of ETI and in maintaining reasonable rates for customers
within the Cities. We look forward to each City's continued participation with the Steering
Committee in the regulatory process.Please forward completed Ordinances to us by email at
danlawtonlawfirm(a gmail.com and molly(a),mayhalIvandervoort.com.
If you have any questions or concerns,please call.
Sincerely,
/104 V4101-Vbee--
For Daniel J.Lawton
Attorney-Client Privileged Communication 5