CC Resolution No. 2358RESOLUTION NO. 2358
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS,
DENYING THE DISTRIBUTION COST RECOVERY FACTOR RATE INCREASE
OF CENTERPOINT ENERGY HOUSTON ELECTRIC, LLC, MADE ON OR ABOUT
APRIL 6, 2015; AUTHORIZING PARTICIPATION IN A COALITION OF
SIMILARLY SITUATED CITIES; AUTHORIZING PARTICIPATION IN RELATED
RATE PROCEEDINGS; REQUIRING THE REIMBURSEMENT OF MUNICIPAL
RATE CASE EXPENSES; AUTHORIZING THE RETENTION OF SPECIAL
COUNSEL; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE
SUBJECT; AND DECLARING AN EFFECTIVE DATE
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WHEREAS, CenterPoint Energy Houston Electric, LLC ( "CenterPoint ") filed an application for
authority to implement a Distribution Cost Recovery Factor with the City to increase rates effective
September 1, 2015; 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 CenterPoint's
rates, operations, and services within the municipality; and
WHEREAS, CenterPoint plans to increase its revenue requirement by $16.7 million per year; and
WHEREAS, the jurisdictional deadline for the City to act in this rate matter is 60 days from the
application date or June 5, 2015; and
WHEREAS, the City will require the assistance of specialized legal counsel and rate experts to
review the merits of CenterPoint's application to increase rates; and
WHEREAS, in order to maximize the efficient use of resources and expertise in reviewing,
analyzing and investigating CenterPoint's rate request it is prudent to coordinate the City's efforts with a
coalition of similarly situated municipalities; and
WHEREAS, the City, in matters regarding applications by CenterPoint to change rates, has in the
past joined with other local regulatory authorities to form the Texas Coast Utilities Coalition ( "TCUC ")
and hereby continues its participation in TCUC; and
WHEREAS, CenterPoint simultaneously filed its statement of intent to increase rates with the
Public Utility Commission of Texas, therefore the decision of the Public Utility Commission of Texas
could have an impact on the rates paid by the City and its citizens who are customers in CenterPoint's
service territory and in order for the City's participation to be meaningful it is important that the City
promptly intervene in such proceeding at the Public Utility Commission of Texas; and
WHEREAS, CenterPoint failed to show that its proposed rate increase is reasonable and therefore
the City has concluded that CenterPoint's proposed rate increase is unreasonable; 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 denies the rate increase CenterPoint filed on or about April 6, 2015.
Section 3: The City authorizes intervention in proceedings related to CenterPoint's
application for approval of a DCRF before the Public Utility Commission of Texas and related
proceedings in courts of law as part of the coalition of cities known as Texas Coast Utilities Coalition
( "TCUC ").
Section 4: The City hereby orders CenterPoint to reimburse the City's rate case expenses as
provided in the Public Utility Regulatory Act and that CenterPoint shall do so on a monthly basis and
within thirty (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 CenterPoint before
the City, the Public Utility Commission of Texas, or any court of law.
Section 5: Subject to the right to terminate employment at any time, the City retains and
authorizes the law firm of Herrera & Boyle, PLLC to act as Special Counsel with regard to rate
proceedings involving CenterPoint before the City, the Public Utility Commission of Texas, or any court
of law and to retain such experts as may be reasonably necessary for review of CenterPoint's rate
application subject to approval by the City.
Section 6: The City shall review the invoices of the lawyers and rate experts for
reasonableness before submitting the invoices to CenterPoint for reimbursement.
Section 7: A copy of this resolution shall be sent to CenterPoint Energy, care of Denise
Gaw, CenterPoint Energy Service Company, LLC, 111 Louisiana Street, Houston, Texas 77002; and to
Mr. Alfred R. Herrera, Herrera & Boyle, PLLC, 816 Congress Ave., Suite 1250, Austin, Texas 78701.
Section 8: This resolution shall take effect immediately from and after its passage by the
City Council of the City of Baytown.
INTRODUCED, READ and PASSED, by the affirmative vote ote City Council of the City of
Baytown this the 14th day of May, 2015.
A
BRYSCH, City
APPROVED AS TO FORM:
NACIO RAMIREZ, SR., City t mey
TEPHEN H. DONCARLOS, Mayor
fr war
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R:1 Karen +,Files +,City Council Resolutions\2015\May 14 Dkt44572- CenterPoint 2015 DCRF - Denial Resolution- 040815.doc