CC Resolution No. 3036 RESOLUTION NO. 3036
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS
("CITY") AUTHORIZING SETTLEMENT OF CENTERPOINT ENERGY HOUSTON
ELECTRIC, LLC'S STORM RESTORATION COST CASE, DOCKET 58028,
PENDING BEFORE THE PUBLIC UTILITY COMMISSION OF TEXAS; MAKING
OTHER FINDINGS AND PROVISIONS RELATED THERETO; AND PROVIDING
FOR THE EFFECTIVE DATE THEREOF.
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WHEREAS, May 2, 2025, CenterPoint Energy Houston Electric (CEHE) filed an application to
recover approximately ONE-BILLION, TWO-HUNDRED, NINETY-FIVE, MILLION DOLLARS
($1,295,000,000.00) in storm-restoration costs stemming from Hurricane Beryl, Hurricane Francine, and
Winter Storm Enzo; and
WHEREAS,under the Public Utility Regulatory Act(PURA) utilities, including CEHE, have the
ability to"obtain timely recovery of system restoration costs and to use securitization financing to recover
[those] costs;" and
WHEREAS, system restoration cost cases (SRCs) are more difficult to contest than cases
contemplating forward-looking expenses,such as system resiliency plan cases,because in SRCs,CEHE has
already spent money on restoration; and
WHEREAS, the City, through its participation in the Texas Coast Utilities Coalition of Cities
("TCUC"), intervened in the proceedings before the PUCT; and
WHEREAS, after evaluation of CEHE's application, the parties in the SRC reached a proposed
settlement of CEHE's request;and
WHEREAS,the proposed settlement:
• lowers CEHE's proposed SRC request by TWENTY-TWO MILLION DOLLARS
($22,000,000.00) from approximately ONE-BILLION, TWO-HUNDRED, NINETY-
FIVE, MILLION DOLLARS ($1,295,000,000.00) to approximately ONE-BILLION,
TWO-HUNDRED, SEVENTY-THREE, MILLION DOLLARS ($1,273,000,000.00);
• defers CEHE from seeking recovery of SEVENTY-EIGHT MILLION DOLLARS
($78,000,000.00) in storm restoration costs until a future ratemaking proceeding;
and
• in total, reduces CEHE's request in the SRC by ONE-HUNDRED MILLION
DOLLARS ($100,000,000.00); and
WHEREAS, the City's Special Counsel in the proceedings before the PUCT recommends that the
City accept the settlement; and
WHEREAS, to avoid the uncertainty, time and expense of further litigation of this proceeding a
settlement is in the better interest of the City and its citizens; and
WHEREAS, in matters regarding CEHE,the City has in the past joined with other local regulatory
authorities in the TCUC,and hereby continues its participation in TCUC,and in related proceedings before
the PUCT; NOW THEREFORE,
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. The City authorizes a settlement of CEHE's pending application before PUCT for
approval of a settlement that:
• lowers CEHE's proposed SRC request by TWENTY-TWO MILLION DOLLARS
($22,000,000.00) from approximately ONE-BILLION, TWO-HUNDRED, NINETY-
FIVE, MILLION DOLLARS ($1,295,000,000.00) to approximately ONE-BILLION,
TWO-HUNDRED, SEVENTY-THREE,MILLION DOLLARS ($1,273,000,000.00).
• defers CEHE from seeking recovery of SEVENTY-EIGHT MILLION DOLLARS
($78,000,000.00) in storm restoration costs until a future ratemaking proceeding;
and
• in total, reduces CEHE's request in the SRC by ONE-HUNDRED MILLION
DOLLARS ($100,000,000.00)
Section 3. 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 of the City of
Baytown this the 11th day of September, 2025.
ES JO , ayor
AT ST: `? j
1 ,I,
ANGEL� CKSON, city-,clerk
APPROV f S TO FORM:
SCOT L OND, City Attorney
R:\Ordinances and Resolutions\Resolution Drafts\City Council\2025-09-I I\Res-CEHE SRC-SL.docx
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EXHIBIT A
Hurricane Beryl Hurricane Francine Winter Storm Eruo Tot.Distribution Hurricane Beryl Winter Storm Enro Tot.Transmission Total
CEHE's Requested SRC 51,095,539 264 523,494,921 536.054,43E 51,155,088,620 511,586.979 5537,360 512,124,339 S1,167.212,959
May 2024 EOP Storms $17,500,000 517,500,000
Estimated Additional Other
Expenses $2.873.176 52,873,176
Carrying Costs 5106.204,710 $1,258,022 5107,462,732
,Subtotal CEHE Requested
SRC $1,095,539,264 523,494,921 536,054,435 51,281,666,506 511,586,979 5537.36O $13,382,361 51,295,048,867
MCC's Adjustment RE Poles
and Feeders (5214.307853i (5214,307,853) (52.911,885) (S2,911,885) (5217,219,738)
MCC's Deferrered May 2024
FOP Storm Costs 50 (517.500,0O0) 50 (517.500,000)
MCC Payroll Related
Adjustments (55,346,239) (5397,520) (5397,520) (55,743,759)
Carrying Costs Adjustment 1521,940,897) 50 (5451,509) (522,392,406)
OPUC Total Adjustments RE
Payroll Expenses I549,973,231) (549.973,231)
GCCC Total Adjustements RE
PM i,1,4t,i.X A3 (51.480,000)
TIEC (51,300,000) (51.300000)
Staff j 54.740.031) (54.740,031)
Total Intervenor&Staff
Recommended Adjustments 50 50 15313.8O8,251j ;53.309,405) (55.060,914) (5320,349,165)
Total Intervenor&Staff
Recommended Adjustments
for Dust &Transco. ($320,349,165)
Intervenor Recommended
SRC -I S23-194<_. 536 054.435 S967,858.255 58.277,574 1537.360 58,321,447 5974.699,702
Intervenor Recommended
SRC Total $974,699,702
Reductions and Deferred Amounts Under Settlement
Settlement Reduction co
Total SRC
Settlement Deferred SRC
Costs
Total Actual SRC Costs Under
Settlement ..._
Total Potential SCR Costs
Under Settlement With
Del feral
Total SRC Costs Collected In
This Case $1,195,048,867