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10-F-40-CenterPoint Energy ORDINANCE NO. 10-F-40 AN ORDINANCE OF THE CITY OF SCHERTZ, TEXAS REGARDING THE STATEMENT OF INTENT FILED WITH THE CITY OF SCHERTZ, TEXAS, BY CENTERPOINT ENERGY RESOURCES CORP. ON OR ABOUT DECEMBER 3, 2010 IN CONNECTION WITH PROPOSED GAS SERVICE RATE INCREASES; ESTABLISHING THE EFFECTIVE DATE; REPEALING ALL ORDINANCES IN CONFLICT HEREWITH AND PROVIDING FOR SEVERABILITY; AND DECLARING AN EMERGENCY WHEREAS, CenterPoint Energy Resources Corp., d/b/a CenterPoint Energy Entex and CenterPoint Energy Texas Gas ("CenterPoint") has anon-exclusive franchise to provide natural gas services in the City of Schertz, Texas (the "City"); and WHEREAS, CenterPoint filed a Statement of Intent to Increase Rates in its South Texas Division with the City on or about December 3, 2010; and WHEREAS, CenterPoint proposed identical system-wide rates for its South Texas Division in a Statement of Intent to Increase Rates filed with the Railroad Commission of Texas ("Railroad Commission"), and such proposed rates are currently being reviewed by the Railroad Commission in Gas Services Division Docket No. 10038; and WHEREAS, such proposed increased rates have been provided to the City; and WHEREAS, the City Council of the City has considered the propriety of such changes; and WHEREAS, the City Council of the City has determined that it is in the best interests of the City to approve the increased gas service rates pursuant to this Ordinance; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS: Section 1. The City hereby authorizes and directs CenterPoint to issue and file with the City tariff sheets identical to the tariff sheets ultimately approved as just and reasonable by Order of the Railroad Commission in Docket No. 10038 and such other docket number(s) as may be assigned by the Railroad Commission to the same cause (the "Order"). Section 2. The rates set out in the tariff sheets described in Section 1 shall become effective for bills for service in the City by CenterPoint rendered on or after the effective date of the Order, and shall be filed with the City within thirty days of the Order. Section 3. Until such time as the tariff sheets are filed pursuant to Section 1, CenterPoint shall continue to charge and observe the level of rates in effect for CenterPoint within the City as of the date of this Ordinance. 50362343.1 - 1 - Section 4. This Ordinance shall become effective upon its acceptance by CenterPoint. Such acceptance shall be transmitted to the City within 15 days of the date of this Ordinance and shall be in the following form: "To the Honorable Mayor and City Council of the City of Schertz, Texas: CenterPoint Energy Resources Corp., its successors and assigns, hereby accepts the attached Ordinance and agrees to be bound by all of its terms." CENTERPOINT ENERGY RESOURCES CORP. Scott Doyle Regional Vice President - Texas Dated this day of _~2I,day of ~~',~-.off o.,~, 201 Section 5. All ordinances and parts of ordinances in conflict with this Ordinance are hereby repealed to the extent of such conflict. Section 6. If any provision, section, subsection, sentence, clause or phrase of this Ordinance is for any reason held to be unconstitutional, void, or invalid (or for any reason unenforceable), the validity of the remaining portions of this Ordinance shall not be affected thereby, it being the intent of the City of Schertz in adopting this Ordinance that no portion hereof or provision or regulation contained herein shall become inoperative or fail by any reason of any unconstitutionality or invalidity of any other portion, provision, or regulation, and to this end, all provisions of this Ordinance are declared to be severable. Section 7. Pursuant to Section 4.09(e) of the City Charter, by vote of not less than two-thirds of the members of the City Council present at the meeting at which this Ordinance was first considered, the City Council has determined that an emergency exists which requires immediate action, and this Ordinance is hereby adopted on a single reading, and this Ordinance shall be effective upon the date hereof, the provisions of Section 4, and any publication required bylaw. PASSED, APPROVED and ADOPTED ON FIRST A FINAL READING, the 21St day of December, 2010. ayor, City of Schertz, Texas ATTEST: City Secretary, City of Schertz, Texas (Seal of City) 50362343.1 ' 2 Center_PointTM Energy Scott E. Doyle Division Vice President December 23, 2010 Texas Region Mayor Hal Baldwin City of Schertz P. O. Drawer 1 Schertz, TX 78154 To the Honorable Mayor and City Council of the City of Schertz: CenterPoint Energy Resources Corp., its successors and assigns, hereby accepts the attached Settlement Agreement and agrees to be bound by all of its terms. CENTERPOINT ENERGY RESOURCES CORP. c~C~=-- Scott E. Doy Regional Vice President -Texas Dated this 23rd day of December, 2010. Attachment 1111 Louisiana St., Suite 2120, Houston, TX 77002 P.0. Box 2628, Houston, TX 77252-2628, Tel: 713 207 6700, Fax: 713 207 6787 scott.doyl e@cente rpo intenergy.com