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Resolution No. 3050 (Item 6.a.)RESOLUTION NO. 3050 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS AUTHORIZING SETTLEMENT OF CENTERPOINT ENERGY HOUSTON ELECTRIC, LLC'S TEMPORARY EMERGENCY ELECTRIC ENERGY FACILITIES LEASES, PENDING BEFORE THE PUBLIC UTILITY COMMISSION OF TEXAS; MAKING OTHER FINDINGS AND PROVISIONS RELATED THERETO; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. ****************************************************************************** WHEREAS, on or about May 27, 2025, CenterPoint Energy Houston Electric (CEHE) filed an application seeking authorization to enter into leases for small mobile generation facilities known as Temporary Emergency Electric Energy Facilities ("TEEEFs"), asserting through its application that the TEEEFs are necessary for restoring power to the Company's distribution customers during a significant power outage; and WHEREAS, CEHE has not stated how much these facilities will cost or the impact adding these leased facilities will have on customers' monthly bills; and WHEREAS, CEHE also asserts that this matter is not a "ratemaking" proceeding before the Public Utilities Commission of Texas ("PUCT") and that, as a result, participating cities such as Baytown are not entitled to any reimbursement of expenses; 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 TEEEF proceeding reached a proposed settlement of CEHE's request; and WHEREAS, the proposed settlement ensures that, when procuring these new TEEEF leases, CEHE will consult with TCUC and other intervenors, and includes the following terms: • CEHE will continue to maintain records that pre -identify locations suitable for the deployment of mobile generation facilities; • Following an event necessitating deployment of these new small TEEEF units, CEHE, upon request, will provide further details on (a) the types of customers and customer facilities where small unit TEEEF were deployed, and (b) the types of customers and locations that small unit TEEEF facilities were not deployed to due to design, customer facility limitations, electrical, or other deployment -related reasons; • When the deployment of TEEEF facilities becomes reasonably foreseeable, at the request of the TCUC cities and/or other intervenors, CEHE will provide further detail on (a) the types of customers and customer facilities where small TEEEF facilities will be deployed, and (b) if known, the types of customers and locations where small TEEEF facilities will not be deployed and for what reason; • CEHE will consult with city and county offices of emergency management in affected service areas on the prioritization for TEEEF deployment when the potential deployment of TEEEF facilities becomes reasonably foreseeable and during significant power outages; CEHE will coordinate with Critical Load customers when the potential deployment of TEEEF becomes reasonably foreseeable to restore service to the Critical Load customer(s) during a significant power outage to determine deployment needs; and CEHE will notify TCUC, other intervenors, and Commission Staff, if CEHE plans to renew the TEEEF lease agreement for which approval is requested; 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 ensures that, when procuring these new TEEEF leases, CEHE will consult with TCUC and other intervenors, and includes the following terms: • CEHE will continue to maintain records that pre -identify locations suitable for the deployment of mobile generation facilities; • Following an event necessitating deployment of these new small TEEEF units, CEHE upon request, will provide further details on (a) the types of customers and customer facilities where small unit TEEEF were deployed, and (b) the types of customers and locations that small unit TEEEF facilities were not deployed to due to design, customer facility limitations, electrical, or other deployment -related reasons; • When the deployment of TEEEF facilities becomes reasonably foreseeable, at the request of the TCUC cities and/or other intervenors, CEHE will provide further detail on (a) the types of customers and customer facilities where small TEEEF facilities will be deployed, and (b) if known, the types of customers and locations where small TEEEF facilities will not be deployed and for what reason; • CEHE will consult with city and county offices of emergency management in affected service areas on the prioritization for TEEEF deployment when the potential deployment of TEEEF facilities becomes reasonably foreseeable and during significant power outages; • CEHE will coordinate with Critical Load customers when the potential deployment of TEEEF becomes reasonably foreseeable to restore service to the Critical Load customer(s) during a significant power outage to determine deployment needs; and • CEHE will notify TCUC, other intervenors, and Commission Staff, if CEHE plans to renew the TEEEF lease agreement for which approval is requested 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 11 th day of December, 2025. ATTEST: =i A GEL AC SO City Clerk o cn APPROVED AS di FORM: SCOTT L MOND, City Attorney RAOrdinances and Resolutions\Resolution Drafts\City Council\2025-12-11\Res-CEHE TEEEF-SL.docx