CC Resolution No. 2931 RESOLUTION NO. 2931
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS,
DENYING THE APPLICATION OF THE CENTERPOINT ENERGY HOUSTON
ELECTRIC LLC FOR AUTHORITY TO INCREASE RATES SUBMITTED ON OR
ABOUT MARCH 6, 2024; REQUIRING THE REIMBURSEMENT OF MUNICIPAL
RATE CASE EXPENSES; FINDING THAT THE MEETING COMPLIES WITH THE
OPEN MEETINGS ACT; MAKING OTHER FINDINGS AND PROVISIONS
RELATED TO THE SUBJECT; AND PROVIDING FOR THE EFFECTIVE DATE
THEREOF.
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WHEREAS, CenterPoint Energy Houston Electric ("CEHE" or "Company") filed a Statement of
Intent with the City on or about March 6, 2024, to change its rates within the corporate limits of this
municipality, specifically to increase its annual revenue for its retail transmission and distribution services
by approximately $60 million, comprised of an increase of about $17 million for its retail customers and
about$43 million for its wholesale transmission customers; and
WHEREAS, the City is a regulatory authority under the Public Utility Regulatory Act ("PURA")
and under Chapter 33, §33.001 et seq. of PURA has exclusive original jurisdiction over CEHE's rates,
operations,and services within the municipality; and
WHEREAS, in order to maximize the efficient use of resources and expertise in reviewing,
analyzing and investigating CEHE's rate request and its changes in tariffs it is prudent to coordinate the
City's efforts with a coalition of similarly situated municipalities; and
WHEREAS, CEHE failed to establish that its overall revenue request resulted in no more than an
amount that will permit CEHE a reasonable opportunity to earn a reasonable return on the utility's invested
capital used and useful in providing service to the public in excess of the utility's reasonable and necessary
operating expenses; and
WHEREAS, CEHE failed to establish that its proposed rates were just and reasonable; and
WHEREAS, the City has previously: (1) suspended CEHE's proposed rate increase by 90 days;
(2) authorized intervention in proceedings related to CEHE's proposed rate increase as a member of the
coalition of cities known as the Texas Coast Utilities Coalition of cities; (3) directed CEHE to reimburse
TCUC's rate case expenses; and(4)retained the law firm of Herrera Law&Associates, PLLC with respect
to rate proceedings involving CEHE before the Public Utility Commission of Texas and courts of law and
to retain consultants to review CEHE's rate application subject to TCUC's approval.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN,TEXAS:
Section 1: The findings set out in the preamble are in all things approved and incorporated
herein as if fully set forth.
Section 2: CEHE failed to show that its proposed rates are just and reasonable.
Section 3: The City hereby DENIES CEHE's request to increase rates and in support of
DENIAL finds that:
a) CEHE failed in its burden of proof to establish that its requested increase in revenue or the changes
set forth in its tariffs attached to CEHE's Statement of Intent to increase rates, results in just and
reasonable rates;
b) CEHE failed in its burden of proof to establish that adoption of its proposed rate base, expenses,
investment, return on equity, and other rate issues as presented in CEHE's Statement of Intent to
increase rates, result in just and reasonable rates.
Section 4: The City hereby orders CEHE to reimburse the City's rate case expenses as provided
in the Public Utility Regulatory Act and that CEHE shall continue to do so on a monthly basis and within
30 days after submission of the City's invoices for the City's reasonable costs associated with the City's
activities related to this rate review or to related proceedings involving CEHE before the City, the Public
Utility Commission of Texas, or any court of law.
Section 5: A copy of this resolution shall be sent to Mr. Alfred R. Herrera, Herrera Law &
Associates, PLLC, P.O. Box 302799, Austin, Texas 78703, and a courtesy copy to Ms. Denise Gaw,
Regulatory Manager, CenterPoint Energy, 1111 Louisiana Street, Houston,Texas 77002.
Section 6: The meeting at which this resolution was approved was in all things conducted in
strict compliance with the Texas Open Meetings Act,Texas Government Code, Chapter 551.
Section 7: This resolution supersedes any prior inconsistent or conflicting resolution or
ordinance.
Section 8: This resolution shall take effect immediately from and after its passage by the City
Council of the City of Baytown, Texas.
INTRODUCED, READ and PASSED by the affirmative vote of the City Council..'the City of
Baytown this the 27"day of June, 2024.
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APPROVED S TO ORM:
SCOTT LEM ND, City Attorney
R Kristin Holmes Ordinances 2024 06.27.2024 CC Agenda Resolution-CEHE General Rate Case.Dental Resolunon.Centerpomt k"docx