Ordinance No. 12,912ORDINANCE NO. 12,912
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN,
TEXAS, APPROVING A SETTLEMENT AGREEMENT BETWEEN THE
TEXAS COAST UTILITIES COALITION OF CITIES AND CENTERPOINT
ENERGY RESOURCES CORP., DB /A CENTERPOINT ENTEX AND
CENTERPOINT ENERGY TEXAS GAS REGARDING THE COMPANY'S
STATEMENT OF INTENT TO CHANGE GAS UTILITY RATES IN ITS
TEXAS COAST DIVISION; DECLARING EXISTING RATES TO BE
UNREASONABLE; DENYING CENTERPOINT'S PROPOSED INCREASE;
ADOPTING TARIFFS THAT REFLECT RATE ADJUSTMENTS
CONSISTENT WITH THE SETTLEMENT AGREEMENT AND FINDING
THE RATES TO BE SET BY THE ATTACHED TARIFFS TO BE JUST AND
REASONABLE; FINDING THE CITY'S RATE CASE EXPENSES
REASONABLE; DIRECTING CENTERPOINT TO REIMBURSE THE CITY
ITS REASONABLE RATE CASE EXPENSES; DECLARING AN EFFECTIVE
DATE; REPEALING ANY PRIOR RESOLUTIONS OR ORDINANCES
INCONSISTENT WITH THIS ORDINANCE AND REQUIRING DELIVERY
OF THIS ORDINANCE TO THE COMPANY AND LEGAL COUNSEL; AND
PROVIDING FOR THE EFFECTIVE DATE THEREOF.
*********************************************** * * * * * * * * * * * * * * * * * * * * * * * * * * * * * **
WHEREAS, the City of Baytown, Texas ( "City ") has exclusive original jurisdiction as a
regulatory authority over CenterPoint Energy Resources Corp., d/b /a CenterPoint Entex and
CenterPoint Energy Texas Gas' ( "CenterPoint" or "Company ") rates, operations, and services
within the City; and
WHEREAS, the City is also a gas utility customer of CenterPoint, and has an interest in
CenterPoint's rates and charges; and
WHEREAS, CenterPoint filed a Statement of Intent with the City on or about March 27,
2015, ( "March 27`h Application ") to increase its annual revenue requirement by approximately
$6.8 million in the Company's Texas Coast Division, with a proposed effective date of May 1,
2015, which represents an increase in base revenue of approximately 11 %; and
WHEREAS, CenterPoint on March 27, 2015, filed its Statement of Intent with the
Railroad Commission of Texas to increase its annual revenue requirement by approximately $6.8
million in the Company's Texas Coast Division, with a proposed effective date of May 1, 2015,
which represents an increase in base revenue of approximately 11 %, and subsequently modified
its request to seek an increase of about $7.2 million, which represents an increase of about 12%
in non -gas revenue; and
WHEREAS, the City took action to suspend the effective date and to coordinate a
response to CenterPoint's filing with other similarly situated municipalities (such participating
cities are referred to herein as the Texas Coast Utilities Coalition of cities ( "TCUC "); and
WHEREAS, the City took action on or before May 1, 2015 to suspend CenterPoint's
proposed effective date; and
WHEREAS, one of TCUC's goals is to minimize rate -case expenses to the extent
reasonable, that otherwise would result from lengthy, contested rate -case proceedings before the
Railroad Commission of Texas and through the appellate process in the courts for the pending
rate case; and
WHEREAS, TCUC authorized its attorneys and experts to formulate and review
reasonable settlement positions to resolve CenterPoint's pending request to increase rates; and
other rate proceedings related to Gas Utilities Docket Nos. 9791, 9910, 10007, and 10097; and
WHEREAS, TCUC's attorneys met numerous times with the Company to negotiate a
Settlement Agreement resolving the issues raised by the Company's Statement of Intent filing;
and
WHEREAS, after extensive review and analysis, TCUC's attorneys and experts found
that CenterPoint's initially proposed increase in revenue and its initially proposed rates are
unreasonable; and
WHEREAS, TCUC's attorneys and experts have evaluated what a likely outcome from a
fully- litigated proceeding would be and are of the opinion that the increase of approximately
$4.9 million noted in the negotiated Settlement Agreement compares favorably with a likely
outcome from a fully- litigated proceeding; and
WHEREAS, after extensive review and analysis, TCUC's attorneys and experts found
that the lower increase of approximately $4.9 million instead of the $7.2 million increase initially
proposed by CenterPoint is reasonable; and
WHEREAS, TCUC's attorneys and experts and TCUC, based on the advice of its
attorneys and experts, recommend that TCUC members approve the negotiated Settlement
Agreement and attached tariffs; and
WHEREAS, under the Gas Utility Regulatory Act, the City has a right to reimbursement
of its reasonable rate -case expenses and CenterPoint has an obligation to reimburse the City's
reasonable rate -case expenses; and
WHEREAS, the attached tariffs implementing new rates are consistent with the
Settlement Agreement and are just, reasonable, and in the public interest; and
WHEREAS, the Settlement Agreements regarding CenterPoint's March 27'1' Application
and Gas Utilities Docket Nos. 9791, 9910, 10007, and 10097, as a whole are in the public
interest; NOW THEREFORE,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN,
TEXAS:
Section 1: That the findings set out in the preamble are in all things approved and
incorporated herein as if fully set forth.
Section 2: That the City Council finds that the Settlement Agreement regarding
CenterPoint's March 27`h Application, attached hereto as Attachment A, and including Exhibits
A through Exhibits E of that Settlement Agreement, and the Agreement regarding Gas Utilities
Docket Nos. 9791, 9910, 10007, and 10097, appended hereto as Attachment B, all incorporated
herein, are in the public interest and are hereby endorsed in all respects.
Section 3: That CenterPoint's existing rates are found unreasonable and the rates set
forth in the Settlement Agreement are just and reasonable.
Section 4: That the revenue and resulting rates set forth in the Settlement Agreement
and schedule of rates and tariffs for gas - utility service provided by CenterPoint, and the
reimbursement of rate case expenses, which are attached as Exhibit A to the Settlement
Agreement appended to this ordinance in Attachment A, are just and reasonable, and are hereby
adopted for service rendered on and after August 21, 2015.
Section 5: That the rates under the Settlement Agreement shall be effective for
service rendered on and after August 21, 2015.
Section 6: That CenterPoint shall submit to the City annually, reports by no later than
September 30 of each year detailing the amount of rate case expenses CenterPoint has collected
through rates as of August 30 of each year and showing the balance remaining to be collected.
Section 7: That CenterPoint's and TCUC's rate -case expenses incurred in
CenterPoint's March 27`h Application, and TCUC's rate -case expenses incurred in Railroad
Commission of Texas Gas Utilities Docket Nos. 9791, 9910, 10007, and 10097, are reasonable;
and the amounts shown in the Settlement Agreement for plant -in- service balances; the base -year
level amounts for tracking changes in pension - related and other post - employment benefits; and
the factors shown for capital structure; return on equity; and the factors related to Interim Rate
Adjustments, are appropriate for future ratemaking proceedings submitted by CenterPoint.
Section 8: That CenterPoint is ordered to reimburse TCUC's total rate case expenses
incurred in CenterPoint's March 271h Application and incurred by TCUC related to Railroad
Commission of Texas Gas Utilities Docket Nos. 9791, 9910, 10007, and 10097, within thirty
(30) days from the effective date of this ordinance.
Section 9: That to the extent any resolution or ordinance previously adopted by the
Council is inconsistent with this ordinance, it is hereby repealed.
Section 10: That if any one or more sections or clauses of this ordinance is adjudged to
be unconstitutional or invalid, such judgment shall not affect, impair or invalidate the remaining
provision of this ordinance and the remaining provisions of the ordinance shall be interpreted as
if the offending section or clause never existed.
3
Section 11: The City Clerk or other appropriate city official shall notify CenterPoint of
this ordinance by sending a copy of the ordinance to Mr. Thomas Stevens, Director of
Regulatory Affairs, CenterPoint Energy, P.O. Box 2628, Houston, Texas 77252 -2628, and
TCUC shall be notified by sending a copy of this ordinance to Mr. Alfred R. Herrera, Herrera &
Boyle, PLLC, 816 Congress Ave., Suite 1250, Austin, Texas 78701, by fax to 512- 474 -2507.
Section 12: This ordinance shall take effect immediately from and after its passage by
the City Council of the City of Baytown.
INTRODUCED, READ and PASSED by the affirmativ/ve f the City Council of the
City of Baytown this the 23`d day of July, 2015.
AT T:
LETICIA BRYSCH, City k
APPROVED AS TO FORM:
4N— IO RAMIREZ, SR., i y Attorney
STJYPHEN H. DONCARLOS, Mayor /
Jhr ee eee tt�
C') • e
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R: Karen Files City Council Ordinancest2015Vuly 23 .GUD10432- 2- Settlement- Ordmance Approving S4.9 million -Mar 271h CenterPoint Rate Application- 070715fINAL docx
ATTACHMENT A
CenterPoint's Mach 27, 2015 Statement
of Intent
Stipulation and Settlement Agreement
ATTACHMENT A
CenterPoint's March 27, 2015
Statement of Intent
Stipulation and Settlement
Agreement
Exhibit A —Rates &Tariffs
Exhibit B - Proof of Revenues
Exhibit C —Net Investment &
Depreciation Rates
Exhibit D —Rate Case Expense
Affidavits
Exhibit E — Cities &Customers
Affected
ATTACHMENT B
Tariffs for
CenterPoint Energy Resources Corp.,
d /b /a CenterPoint Entex and
CenterPoint Energy Texas Gas
GUD NO. 10432, consolidated
STATEMENT OF INTENT OF §
CENTERPOINT ENERGY RESOURCES § BEFORE THE
CORP., D /B /A CENTERPOINT ENERGY §
ENTEX AND CENTERPOINT ENERGY § RAILROAD COMMISSION
TEXAS GAS TO INCREASE RATES ON §
A DIVISION -WIDE BASIS IN THE § OF TEXAS
TEXAS COAST DIVISION §
UNANIMOUS_ SETTLEMENT AGREEMENT
This Settlement Agreement is entered into by and between CenterPoint Energy Resources
Corp., d/b /a CenterPoint Energy Entex and CenterPoint Energy Texas Gas ("CenterPoint" or the
"Company "); the Texas Coast Utilities Coalition whose members include the Cities of Angleton.
Baytown, Clute, Freeport, League City, Pearland, Shoreacres, West Columbia, and Wharton,
Texas (collectively, "TCUC Cities "); the Gulf Coast Coalition of Cities ("GCCC ") whose
members include the Cities of Alvin, Brookshire, Clear Lake Shores, Dickinson. Friendswood,
Fulshear, Kemah. Lake Jackson, La Marque, Mamel. Mont Belvieu, Morgan's Point.
Rosenberg, Santa Fe, Seabrook, Sugar Land, "Taylor Lake Village, Texas City, Webster, and
Weston Lakes, Texas (collectively "GCCC Cities")-, and the Staff of the Railroad Commission of
Texas ( "Staff"), (collectivel), the "Signatories ").
WHEREAS, on March 27. 2015, CenterPoint filed its Statement of Intent to Increase
Rates with the Railroad Commission of Texas (`Commission ") and each of the cities in the
Texas Coast Division retaining original jurisdiction; and
WHEREAS, the Commission docketed the rate request as GUD No. 10432; and
WHEREAS, the GCCC Cities, TCUC Cities, and Commission Staff sought intervention
and were granted party status in GUD No. 10432; and
WHEREAS, the GCCC Cities have denied the Company's rate request, which denials
were subsequently appealed to the Commission; and
WHEREAS. certain TCUC Cities denied the Company's rate request, which denials were
subsequently appealed to the Commission and certain TCUC Cities have currently suspended the
implementation of the Company's rate request; and
WHEREAS, the Company has sought the consolidation of all other municipal appeals
with GUD No. 10432; and
WHEREAS, CenterPoint has tiled direct testimony and an errata to its Statement of
Intent; and
WHEREAS, direct testimony by GCCC and TCUC was initially due on .tune 24. 2015.
and Commission Staff direct testimony on July 1, 2015. but GCCC, TCUC, and Commission
Staff did not file direct testimony in reliance on this Unanimous Settlement Agreement. and
WHEREAS, the parties have engaged in significant discovery regarding the issues in
dispute; and
WHEREAS, the Signatories agree that resolution of this docket by settlement agreement
will significantly reduce the amount of reimbursable rate case expenses associated with this
docket;
NOW, THEREFORE:, in consideration of the mutual agreements and covenants
established herein, the Signatories, through their undersigned representatives, agree to and
recommend for approval by the Commission the following Settlement Terms as a means of
concluding the above - referenced docket filed by CenterPoint on behalf of its Texas Coast
Division without the need for prolonged litigation:
Seltlement Terms
The Signatories agree to the rates, terns and conditions reflected in the tariffs attached to
this Settlement Agreement as Exhibit A. The tariffs attached as Exhibit A replace and
supersede those tariffs currently in effect in the Texas Coast Division. These tariffs are
premised on an increase of an additional $4.9 million in annual revenues as illustrated in
die proof of revenues attached as part of Exhibit B to this Settlement Agreement in
CenterPoint's Texas Coast Division. Except as specifically provided herein, the
Signatories agree that the $4.9 million revenue increase is a "black box" figure and is not
tied to any specific expense in CenterPoint's Texas Coast Division's underlying cost of
service. The Signatories further agree that the rates, terms and conditions reflected in
Exhibit A to this Settlement Agreement comply with the rate - setting requirements of
Chapter 104 of the Texas Utilities Code. The gas rates, terms and conditions established
by this Settlement Agreement shall be effective upon approval by the Commission.
2. The Signatories agree to the following customer charges and volumetric rates. These
rates are reflected in the rate schedules attached as Exhibit A.
2
Customer Charge
Commodity Charge
Residential
$15.00
$0.0746 per Ccf
General Service — Small
$15.50
$0.0671 er Ccf
General Service - Lar e Volume
$45.00
$0.0440 per Ccf
2
3. The Signatories agree to the following capital structure and weighted cost of capital.
including the pre -tax return, as shown below:
4. The Signatories agree that any Interim Rate Adjustment ("IRA ") tiling in the Texas Coast
Division pursuant to Texas Utilities Code § 104.301 shall use the following factors until
changed by a subsequent general rate proceeding:
• The capital structure and related components as shown above in item 3.
• For any initial IRA filing, the Net Investment, which includes detail of
Plant in Service amounts by Fixed Capital Account ( "FCA ") along with
the associated depreciation rate for each account as shown on Exhibit C.
• For any initial IRA filing, the beginning amount of ad valorem taxes at the
Texas Coast Division level is $2,238,994 and the standard sales service
amount is $2,179,217. Margin tax will be calculated using a .75% factor
until or unless changed by statute.
• For any initial IRA filing, the rate base amount for standard sales sen'ice
is $132,920,321 for purposes of calculating the federal income tax on
related schedules in the IRA filing. This amount is derived based on
settlement and should not be considered precedential for purposes of
regulatory assets or liabilities associated with pensions, retirement plans.
and deferred benefits requested in this case.
• For any initial IRA filing, the customer charges as noted in item 2 above
will be the starting rates to apply to any IRA adjustment.
• The base rate revenue allocation factors to spread any change in IRA
increase /decrease to the appropriate customer classes is as follows:
Residential
Capital
Debt/Equity
Weighted Cost
Pre -Tax
1.1079 °.'0
Structure
Cost
of Capital
Return
Long-Term Debt
45.5%
6.1141%
2.78%
2.78%
Common E ui
54.5%
10.0% 15.45%
18.38%
Rate of Return
100%
8.23-%J
11.170%
4. The Signatories agree that any Interim Rate Adjustment ("IRA ") tiling in the Texas Coast
Division pursuant to Texas Utilities Code § 104.301 shall use the following factors until
changed by a subsequent general rate proceeding:
• The capital structure and related components as shown above in item 3.
• For any initial IRA filing, the Net Investment, which includes detail of
Plant in Service amounts by Fixed Capital Account ( "FCA ") along with
the associated depreciation rate for each account as shown on Exhibit C.
• For any initial IRA filing, the beginning amount of ad valorem taxes at the
Texas Coast Division level is $2,238,994 and the standard sales service
amount is $2,179,217. Margin tax will be calculated using a .75% factor
until or unless changed by statute.
• For any initial IRA filing, the rate base amount for standard sales sen'ice
is $132,920,321 for purposes of calculating the federal income tax on
related schedules in the IRA filing. This amount is derived based on
settlement and should not be considered precedential for purposes of
regulatory assets or liabilities associated with pensions, retirement plans.
and deferred benefits requested in this case.
• For any initial IRA filing, the customer charges as noted in item 2 above
will be the starting rates to apply to any IRA adjustment.
• The base rate revenue allocation factors to spread any change in IRA
increase /decrease to the appropriate customer classes is as follows:
Residential
Small
Lar e
92.5131%
6.3790%
1.1079 °.'0
5. CenterPoint may pursue a deferred benefit regulatory asset or liability pursuant to Texas
Utilities Code § 104.059 in a future tiling. The Signatories identify the following
amounts as the base year level to track changes in pension - related and other post -
employment benefits:
Description
Total
Pension
$1,666.822
Benefit Restoration Plan
$290,207
Post Employment
$138,363
Post Retirement
$469,733
J
6. CenterPoint. GCCC, and TCUC represent that their reasonable rate case expenses
incurred through May 2015, and estimated rate case expenses incurred through
completion of this case, are as follows:
7. CenterPoint, GCCC, and TCUC attach as Exhibit D affidavits and invoices in support of
these amounts, and will supplement with additional invoices as they are processed.
CenterPoint. GCCC and TCUC agree that the amounts represented above are reasonable
and recoverable pursuant to Texas [Jtilities Code § 103.022. CenterPoint, GCCC, and
TCUC agree that the recovery period for the applicable surcharge to recover rate -case
expenses shall be thirty -six months. CenterPoint agrees to reimburse GCCC and TCUC
the amount of rate case expenses set forth above within 30 days of the issuance of an
order authorizing recovery of those expenses. The parties intend and advocate that the
Commission authorize recovery of the rate case expenses recited above in the same
proceeding and at the same time as it approves this Unanimous Settlement Agreement.
8. As part of this Unanimous Settlement Agreement, TCUC agrees to withdraw its pending
appeal in the Remand of GUD No. 9791 and its appeals of GUD Nos. 9910, 10007 and
10097, which are currently pending in Travis County District Courts (docketed as D -1-
GN -1 0- 001189, D- 1 -GN -1 1- 001472, D- 1- GN -12- 000930. D- 1- GN -12- 000931, and D -1-
GN -12- 000932).
9. As part of this Unanimous Settlement Agreement, and in consideration for the increase in
rates agreed to in Paragraph No. 1 and the agreements set forth in Paragraph No. 8,
above, the TCUC Cities of Angleton, Baytown, League City, Pearland, West Columbia,
and Wharton agree to adopt the tariffs and rate schedules attached to this Unanimous
Settlement Agreement by municipal ordinance, on or before July 31, 2015, so as to effect
the implementation of system wide rates. In the event that the aforementioned Cities fail
to approve the Unanimous Settlement Agreement by July 31, 2015. these Cities agree
that the municipal decisions shall be appealed to the Commission and that the rates
agreed to pursuant to this Unanimous Settlement Agreement should be adopted by the
Commission as just and reasonable rates within those municipalities.
10. The signatories agree that the affiliate expenses included in the black box amount above
are recoverable consistent with the provisions in Section 104.055 of the Gas Utility
Regulatory Act. This agreement with respect to requested affiliate expenses is derived
based on settlement and should not be considered precedential.
H. The classes and number of customers affected by this Unanimous Settlement Agreement
are identified on a city -by -city and unincorporated -area basis in Exhibit E.
4
Actual Invoices
Invoices Due and Est.
TOTAL
Received
to Completion
CenterPoint
$459,887.57
$160,000.00
$619,887.57
GCCC
$81,458.94
$5,000.00
$86,458.94
TCUC
$71,290?9
$4,550
F $75,840?9
7. CenterPoint, GCCC, and TCUC attach as Exhibit D affidavits and invoices in support of
these amounts, and will supplement with additional invoices as they are processed.
CenterPoint. GCCC and TCUC agree that the amounts represented above are reasonable
and recoverable pursuant to Texas [Jtilities Code § 103.022. CenterPoint, GCCC, and
TCUC agree that the recovery period for the applicable surcharge to recover rate -case
expenses shall be thirty -six months. CenterPoint agrees to reimburse GCCC and TCUC
the amount of rate case expenses set forth above within 30 days of the issuance of an
order authorizing recovery of those expenses. The parties intend and advocate that the
Commission authorize recovery of the rate case expenses recited above in the same
proceeding and at the same time as it approves this Unanimous Settlement Agreement.
8. As part of this Unanimous Settlement Agreement, TCUC agrees to withdraw its pending
appeal in the Remand of GUD No. 9791 and its appeals of GUD Nos. 9910, 10007 and
10097, which are currently pending in Travis County District Courts (docketed as D -1-
GN -1 0- 001189, D- 1 -GN -1 1- 001472, D- 1- GN -12- 000930. D- 1- GN -12- 000931, and D -1-
GN -12- 000932).
9. As part of this Unanimous Settlement Agreement, and in consideration for the increase in
rates agreed to in Paragraph No. 1 and the agreements set forth in Paragraph No. 8,
above, the TCUC Cities of Angleton, Baytown, League City, Pearland, West Columbia,
and Wharton agree to adopt the tariffs and rate schedules attached to this Unanimous
Settlement Agreement by municipal ordinance, on or before July 31, 2015, so as to effect
the implementation of system wide rates. In the event that the aforementioned Cities fail
to approve the Unanimous Settlement Agreement by July 31, 2015. these Cities agree
that the municipal decisions shall be appealed to the Commission and that the rates
agreed to pursuant to this Unanimous Settlement Agreement should be adopted by the
Commission as just and reasonable rates within those municipalities.
10. The signatories agree that the affiliate expenses included in the black box amount above
are recoverable consistent with the provisions in Section 104.055 of the Gas Utility
Regulatory Act. This agreement with respect to requested affiliate expenses is derived
based on settlement and should not be considered precedential.
H. The classes and number of customers affected by this Unanimous Settlement Agreement
are identified on a city -by -city and unincorporated -area basis in Exhibit E.
4
12. The Signatories agree to support and seek Commission approval of this Unanimous
Settlement Agreement. The Signatories further agree to make all efforts to present the
Commission with this Unanimous Settlement Agreement at Conference scheduled for
July 14, 2015 or as soon as possible thereafter.
13. The Signatories agree that all negotiations, discussions, and conferences related to the
Unanimous Settlement Agreement are privileged, inadmissible, and not relevant to prove
any issues associated with the Statement of Intent to Increase Rates in the Texas Coast
Division filed on March 27, 2015.
14. The Signatories agree that neither this Unanimous Settlement Agreement nor any oral or
written statements made during the course of settlement negotiations may be used for any
purpose other than as necessary to support the entry by the Commission of an order
approving this Settlement Agreement.
15. The Signatories agree that the terms of the Unanimous Settlement Agreement are
interdependent and indivisible, and that if the Commission intends to enter an order that
is inconsistent with this Settlement Agreement, then any Signatory may withdraw without
being deemed to have waived any procedural right or to have taken any substantive
position on any fact or issue by virtue of that Signatory's entry into the Settlement
Agreement or its subsequent withdrawal and further agrees that CenterPoint's application
to increase rates will be remanded for hearings.
16. The Signatories agree that this Unanimous Settlement Agreement is binding on each
Signatory only for the purpose of settling the issues set forth herein and for no other
purposes, and except to the extent the Settlement Agreement governs a Signatory's rights
and obligations for future periods, this Settlement Agreement shall not be binding or
precedential upon a Signatory outside this proceeding.
17. The Signatories agree that this Unanimous Settlement Agreement may be executed in
multiple counterparts and may be filed with facsimile signatures.
Agreed to this _Z"d day of July, 2015.
CENTERPOINT ENERGY RESOURCES CORP.
By. ..�
Mark Santos
Attorney for CenterPoint Energy Resources Corp.
TEXAS COAST COALITION OF CITIES
Alfred Herrera
Attorney for Texas Coast Coalition of Cities
GULF COAST COALITION OF CITIES
By:
Thomas Brocato
Attorney for Gulf Coast Coalition of Cities
STAFF OF THE RAILROAD COMMISSION OF TEXAS
John Pierce Griffin
Attorney for Staff of the Railroad Commission of Texas
0
Agreed to this 6 "' day of July. 2015.
CENTERPOINT ENERGY RESOURCES CORP.
By:
Mark Santos
Attorney for CenterPoint Energy Resources Corp.
TEXAS COAg' COALITION OFjCITIES
By: RAI
Attorney for Texas Coast Coalition of Cities
GULF COAST COALITION OF CITIES
By;
Thomas Brocato
Attorney for Gulf Coast Coalition of Cities
STAFF OF THE RAILROAD COMMISSION OF TEXAS
John Pierce Griffin
Attorney for Staff of the Railroad Commission of Texas
6
Agreed to this —"d day of July, 2015.
CENTERPOINT ENERGY RESOURCES CORP.
By:
Mark Santos
Attorney for CenterPoint Energy Resources Corp.
TEXAS COAST COALITION OF CITIES
By:
Alfred Herrera
Attorney for Texas Coast Coalition of Cities
GULF COAST COALITION CIA CITIES
By:
for Gulf Coast CoatWon of Cities
STAFF OF TI IE RAILROAD COMMISSION OF TEXAS
By:
John Pierce Griffin
Attorney for Staff of the Railroad Commission of Texas
Agreed to this " day of July, 2015.
CENTERPOINT ENERGY RESOURCES CORP.
By:
Mark Santos
Attomey for CenterPoint Energy Resources Corp.
TEXAS COAST COMMON OF CMES
By:
Alfred Hearers
Atbamey for Texas Coast Coalition of Cities
GULF COAST COALITION OF CMES
By:
Thomas Bmc ato
Attorney for Gulf Coast Coalition of Cities
STAFF OF THE R 27 OAD COMMISSION OF TEXAS
By:
rie� Attomey for Staff of the Rmihl
pud Commission of Texas
6
CENTERPOINT ENERGY RESOURCES CORP.
D /B /A CENTERPOINT ENERGY ENTEX
AND CENTERPOINT ENERGY TEXAS GAS
TEXAS COAST DIVISION
RATESHEET
RESIDENTIAL SERVICE
RATE SCHEDULE NO. R -2093
APPLICATION OF SCHEDULE
This schedule is applicable to any customer in an incorporated area or in the environs in the Texas Coast Division to
whom service is supplied in a single private dwelling unit and its appurtenances. the major use of which is for
household appliances, and for the personal comfort and convenience of those residing therein.
Natural gas supplied hereunder is for the individual use of the customer at one point of delivery and shall not be
resold or shared with others.
MONTHLY RATE
For bills rendered on and after the effective date of this rate schedule, the monthly rate for each customer receiving
service under this rate schedule shall be the sum of the following:
(a) The Base Rate consisting of:
(1) Customer Charge — $15.00;
(2) Commodity Charge —
AII Ccf $0.0746 per Ccf
(b) Tax Adjustment - The Tax Adjustment will be calculated and adjusted periodically as defined in the
Company's applicable Tax Adjustment Rate Schedule and Franchise Fee Adjustment Rate Schedule.
(c) Gas Cost Adjustment — The applicable Purchased Gas Adjustment (PGA) Rate as calculated on a per
Ccf basis and adjusted periodically under the applicable Purchased Gas Adjustment (PGA) Rate
Schedule For all gas used.
(d) Rate Case Expense Recovery — Rate Case Expense Recovery will be calculated and adjusted
periodically as defined in the Company's applicable Rate Case Expense Recovery Rate Schedule.
PAYMENT
Due date of the bill for service shall not be less than 15 days after issuance or such other period of time as may be
provided by order of the regulatory authority. A bill for utility service is delinquent if unpaid by the due date.
RULES AND REGULATIONS
Service under this schedule shall be furnished in accordance with the Company's General Rules and Regulations. as
such rules may be amended from time to time. A copy of the Company's General Rules and Regulations may be
obtained from Company's office located at I 1 I I Louisiana Street, Houston, Texas.
CENTERPOINT ENERGY RESOURCES CORP.
D /B /A CENTERPOINT ENERGY ENTEX
AND CENTERPOINT ENERGY TEXAS GAS
TEXAS COAST DIVISION
RATE SHEET
GENERAL SERVICE -SMALL
RATE SCHEDULE NO. GSS -2093
APPLICATION OF SCHEDULE
This schedule is applicable to natural gas service to any customer in an incorporated area or in the environs in the
Texas Coast Division engaging in any business, professional or institutional activity, for all uses of gas, including
cooking, heating, refrigeration, water heating, air conditioning, and power.
This schedule is applicable to any general service customer for commercial uses and industrial uses, except standby
service, whose average monthly usage for the prior calendar year is 150,000 cubic feet or less. Natural gas supplied
hereunder is for the individual use of the customer at one point of delivery and shall not be resold or shared with
others.
MONTHLY RATE
For bills rendered on and after the effective date of this rate schedule, the monthly rate for each customer receiving
service under this rate schedule shall be the sum of the following:
(a) The Base Rate consisting of:
(1) Customer Charge — $15.50;
(2) Commodity Charge—
All Ccf $0.0671 per Ccf
(b) Tax Adjustment — The Tax Adjustment will be calculated and adjusted periodically as defined in the
Company's applicable Tax Adjustment Rate Schedule and Franchise Fee Adjustment Rate Schedule.
(c) Gas Cost Adjustment — The applicable Purchased Gas Adjustment (PGA) Rate - as calculated on a per
Ccf basis and adjusted periodically under the applicable Purchased Gas Adjustment (PGA) Rate
Schedule - for all gas used.
(d) Rate Case Expense Recovery Rate Case Expense Recovery will be calculated and adjusted
periodically as defined in the Company's applicable Rate Case Expense Recovery Rate Schedule.
PAYMENT
Due date of the bill for service shall not be less than 15 days after issuance or such other period of time as may be
provided by order of the regulatory authority. A bill for utility service is delinquent if unpaid by the due date.
RULES AND REGULATIONS
Service under this schedule shall be furnished in accordance with the Company's General Rules and Regulations, as
such rules may be amended from time to time. A copy of the Company's General Rules and Regulations may be
obtained from Company's office located at 1 1 I 1 Louisiana Street, Houston, Texas.
CENTERPOINT ENERGY RESOURCES CORP.
D /B /A CENTERPOINT ENERGY ENTEX
AND CENTERPOINT ENERGY TEXAS GAS
TEXAS COAST DIVISION
RATE SHEET
GENERAL SERVICE -LARGE VOLUME
RATE SCHEDULE NO. GSLV -624
AVAILABILITY
This schedule is available at points on existing facilities of adequate capacity and suitable pressure in the area
designated in the Rate Book of CENTERPOINT ENERGY RESOURCES CORP., D /B /A CENTERPOINT
ENERGY ENTEX AND CENTERPOINT ENERGY TEXAS GAS (hereinafter called "Company ").
APPLICATION OF SCHEDULE
This schedule is applicable to any general service customer in an incorporated area or in the environs in the Texas
Coast Division for commercial uses and industrial uses whose average monthly usage for the prior calendar year is
more than 150,000 cubic feet. Gas supplied hereunder is for the individual use of the Consumer at one point of
delivery and shall not be resold or shared with others. If the Consumer has a written contract with Company, the
terms and provision of such contract shall be controlling.
MONTHLY RATE
For bills rendered on and after the effective date of this rate schedule, the monthly rate for each customer receiving
service under this rate schedule shall be the sum of the following:
(a) The Base Rate consisting of:
(1) Customer Charge $45.00,
(2) Commodity Charge
All Ccf $0.0440 per Ccf
(b) Tax Adjustment — The Tax Adjustment will be calculated and adjusted periodically as defined in the
Company's applicable Tax Adjustment Rate Schedule and Franchise Fee Adjustment Rate Schedule,
(c) Gas Cost Adjustment — The applicable Purchased Gas Adjustment (PGA) Rate as calculated on a per
Mcf basis and adjusted periodically under the applicable Purchased Gas Adjustment (PGA) Rate
Schedule for all gas used.
(d) Rate Case Expense Recovery — Rate Case Expense Recovery will be calculated and adjusted
periodically as defined in the Company's applicable Rate Case Expense Recovery Rate Schedule.
WRITTEN _CONTRACT
In order to receive a delivery from Company of more than 25 Mcf during any one day, the Consumer must execute a
written contract with Company on Company's form of contract covering the sale of gas by Company to it. In the
case of existing Consumers, the maximum gas usage during any one day shall be obtained from the records of the
Company, except in cases where the existing Consumer will be purchasing increased volumes of gas from Company
because of expansions or for any other reasons, in which event the Company may estimate usage by such Consumer.
Also in the case of new Consumers, the Company may estimate usage by the Consumer. Any such estimates made
by Company shall be binding on Consumer in determining whether or not a contract is required. Such «ritten
contract shall be executed by Consumer upon request of Company and Company shall not be obligated to serve any
CENTERPOINT ENERGY RESOURCES CORP.
D /B /A CENTERPOINT ENERGY ENTEX
AND CENTERPOINT ENERGY TEXAS GAS
TEXAS COAST DIVISION
RATE SHEET
GENERAL SERVICE -LARGE VOLUME
RATE SCHEDULE NO. GSLV -624
such Consumer more than 25 Mcf during any one day until such written contract is executed and delivered by
Consumer.
MEASUREMENT
The term "cubic foot of gas" for the purpose of measurement of the gas delivered and for all other purposes is the
amount of gas necessary to fill a cubic foot of space when the gas is at an absolute pressure of 14.65 pounds per
square inch and at a base temperature of sixty (60) degrees Fahrenheit.
The term "Mcf' shall mean 1,000 cubic feet of gas.
The Sales Unit shall be one Mcf.
Assumed Atmospheric Pressure - The average atmospheric pressure shall be assumed to be fourteen and seven -
tenths (14.7) pounds per square inch, irrespective of actual elevation or location of the point of delivery above sea
level or variation in such atmospheric pressure from time to time.
Orifice Meters - When orifice meters are used for the measurement of gas, such orifice meters shall be constructed
and installed, and the computations of volume made, in accordance with the provisions of Gas Measurement
Committee Report No. 3 of the American Gas Association as revised September, 1969 ( °A.G.A. Report No. 3), with
any subsequent amendments or revisions which may be mutually acceptable.
The temperature of the gas shall be determined by a recording thermometer so installed that it may record the
temperature of the gas flowing through the meter or meters. The average of the record to the nearest one ( I ) degree
Fahrenheit, obtained while gas is being delivered, shall be the applicable flowing gas temperature for the period
under consideration.
The specific gravity of the gas shall be determined by a recording gravitometer owned and operated by the pipeline
company from whom Company purchases its gas, so installed that it may record the specific gravity of the gas
flowing through the meter or meters; provided, however, that the results of spot tests made by the pipeline company
with a standard type specific gravity instrument shall be used at locations where the pipeline company does not have
a recording gravitometer in service. If the recording gravitometer is used, the average of the record to the nearest
one - thousandth (0.001), obtained while gas is being delivered, shall be the applicable specific gravity of the gas for
the period under consideration. If the spot test method is used, the specific gravity of the gas delivered hereunder
shall be determined once monthly, the result obtained, to the nearest one - thousandth (0.001), to be applicable during
the succeeding billing month.
Adjustment for the effect of supercompressibility shall be made according to the provisions of A.G.A. Report No. 3.
hereinabove identified, for the average conditions of pressure, flowing temperature and specific gravity at which the
gas was measured during the period under consideration, and with the proportionate value of each carbon dioxide
and nitrogen in the gas delivered included in the computation of the applicable supercompressibility factors.
Company shall obtain appropriate carbon dioxide and nitrogen fraction values as may be required from time to time.
Positive Displacement Meters and Turbine Meters - When positive displacement meters and /or turbine meters are
used for the measurement of gas, the flowing temperature of the gas metered shall be assumed to be sixty (60)
degrees Fahrenheit, and no correction shall be made for any variation therefrom; provided however, that company
shall have the option of installing a recording thermometer, and if company exercises such option, corrections shall
be made for each degree variation in the applicable flowing temperature for the period under consideration.
CENTERPOINT ENERGY RESOURCES CORP.
D /B /A CENTERPOINT ENERGY ENTEX
AND CENTERPOINT ENERGY TEXAS GAS
TEXAS COAST DIVISION
RATE SHEET
GENERAL SERVICE -LARGE VOLUME
RATE SCHEDULE NO. GSLV -624
The volumes of gas determined shall be adjusted for the effect of supercompressibility as follows:
(A) When the flowing temperature of gas is assumed to be sixty (60) degrees Fahrenheit, the
supercompressibility factor shall be the square of the factor, Fpv, computed in accordance with
the principles of the A.G. A. Report No. 3, hereinabove identified, for a pure hydrocarbon gas of
six - tenths (0.6) specific gravity and for the average pressure at which the gas was measured.
(B) When the flowing gas temperature is recorded and applied according to the option above, the
supercompressibility factor shall be the square of the factor. Fpv. computed in accordance with
the principles of the American Gas Association Gas Measurement Committee Report No. 3.
hereinabove identified, for a pure hydrocarbon gas of six - tenths (0.6) specific gravity and for the
average conditions of pressure and Flowing temperature at which the gas was measured.
SUPPLY INTERRUPTIONS
Total or partial interruption of gas deliveries due to acts of God, the elements, requirements for residential and other
uses declared superior to Consumers by law, or to other causes or contingencies beyond the control of Company or
not proximately caused by Company's negligence, shall not be the basis for claims- delivery and receipt of gas to be
resumed whenever any such cause or contingency shall end.
CHARGES FOR UNAUTHORIZED OVER -RUN GAS
Any gas taken during any day by Consumer which exceeds the maximum daily quantity specified in Consumer's
contract with Company shall be considered to be unauthorized over -run gas. Any gas taken by Consumer after the
effective hour of an order calling for a complete curtailment of all gas deliveries. and prior to the authorized
resumption of natural gas service, hereunder shall be considered to be unauthorized over -run gas. Any gas taken by
Consumer after the effective hour of an order calling for a partial curtailment, and prior to the authorized resumption
of natural gas service, which exceeds the stated amount of gas deliveries Consumer may take during such partial
curtailment, shall be considered to be unauthorized over -run gas. Company shall bill, and Consumer shall pay for
unauthorized over -run gas at the rate of $10.00 per Mcf, in addition to the Monthly Rate specified herein for such
gas. The payment of such additional charge for unauthorized over -run gas shall not, under any circumstances. be
considered as giving the Consumer the right to take unauthorized over -run gas, nor shall such payment be
considered to exclude or limit any other remedies available to Company against the Consumer for exceeding the
maximum daily quantity specified in Consumer's contract with Company, or for failure to comply with curtailment
orders issued by Company hereunder.
The additional amount specified above charged for unauthorized over -run gas shall be adjusted, either plus or minus,
to conform to the change made by Company's supplier in its rate schedule tinder which Company purchases its gas
supply for resale under this schedule.
RULES AND REGULATIONS
Service under this schedule shall be furnished in accordance with the Company's General Rules and Regulations, as
such rules may be amended from time to time. A copy of the Company's General Rules and Regulations may be
obtained from Company's office located at I I I 1 Louisiana Street, Houston, Texas.
CENTERPOINT ENERGY RESOURCES CORP.
D /B /A CENTERPOINT ENERGY ENTEX
AND CENTERPOINT ENERGY TEXAS GAS
TEXAS COAST DIVISION
RATE SHEET
FRANCHISE FEE ADJUSTMENT
RATE SCHEDULE NO. FFA -6
APPLICATION
Applicable to Customers inside the corporate limits of an incorporated municipality that imposes a municipal
franchise fee upon Company for the Gas Service provided to Customer.
MONTHLY ADJUSTMENT
Company will adjust Customer's bill each month in an amount equal to the municipal franchise fees payable for the
Gas Service provided to Customer by Company. Municipal franchise fees are determined by each municipality's
franchise ordinance. Each municipality's franchise ordinance will specify the percentage and applicability of
franchise fees.
RAILROAD COMMISSION REPORTING
CenterPoint shall maintain on file with the Railroad Commission of Texas a current listing of Cities and applicable
franchise fees:,. Reports should be filed at the Commission as follows:
I aril Compliance
Oversight and Safety Division, Gas Services
Railroad Commission of Texas
P.O, Drawer 12967
Austin, TX 78711-2967
CENTERPOINT ENERGY RESOURCES CORP.
D /B /A CENTERPOINT ENERGY ENTEX
AND CENTERPOINT ENERGY TEXAS GAS
TEXAS COAST DIVISION
RATE SHEET
TAX ADJUSTMENT
RATE SCHEDULE NO. TA-1 1
The Customers shall reimburse the Company for the Customers' proportionate part of any tax, charge, impost,
assessment or fee of whatever kind and by whatever name (except ad valorem taxes and income taxes) levied upon
the Company by any governmental authority under any law, rule, regulation, ordinance, or agreement (hereinafter
referred to as "the Tax "). If the law, rule, regulation, ordinance, or agreement levying the Tax specifies a method of
collection from Customers, then the method so specified shall be utilized provided such method results in the
collection of taxes from the Customers equal to the taxes levied on the Company. If no method of collection is
specified, then the Company shall collect an amount calculated as a percentage of the Customers' bills applicable
directly to those Customers located solely within the jurisdiction imposing the tax and/or within the jurisdiction
where the tax is applicable. The percentage shall be determined so that the collection from Customers within the
Company's different legal jurisdictions (municipal or otherwise defined) encompassing the Texas Coast Division is
equal to the taxes levied on the Company.
The initial Tax Adjustment Rate shall be based on the Taxes that are levied upon the Company on the effective date
of this Rate Schedule. Tile Company will initiate a new or changed Tax Adjustment Rate beginning with the billing
cycle immediately following the effective date of the new or changed Tax as specified by the applicable law, rule,
regulation, ordinance, or agreement, provided that the Company has the customer billing data necessary to bill and
collect the Tax. If at any time there is a significant change that will cause an unreasonable over or under collection
of the Tax, the Company will adjust the Tax Adjustment Rate so that such over or under collection will be
minimized. The Tax Adjustment Rate (calculated on a per Ccf or per Mcf basis, as appropriate) shall be reported to
the applicable governmental authority by the last business day of the month in which the Tax Adjustment Rate
became effective.
CENTERPOINT ENERGY RESOURCES CORP.
D /B /A/ CENTERPOINT ENERGY ENTEX
AND CENTERPOINT ENERGY TEXAS GAS
TEXAS COAST DIVISION
RATE SHEET
PURCHASED GAS ADJUSTMENT
RATE SCHEDULE NO. PGA -13
This Cost of Gas Clause shall apply to all general service rate schedules of CenterPoint Energy Entex in
the Incorporated and Environs areas of the Texas Coast Division ( "the Company ").
A. DEFINITIONS
1. Cost of Purchased Gas (G): The Company's best estimate of the cost of natural gas (per
Mcf) to be purchased for resale hereunder during the period that the PGA Rate is to be
effective. The cost of natural gas shall include the cost of gas supplies purchased for
resale hereunder, upstream transportation capacity charges, storage capacity charges. the
cost of gas withdrawn from storage less the cost of gas injected into storage, and any
transaction- related fees, gains or losses and other transaction costs associated with the use
of various financial instruments used by the Company to stabilize prices.
2. Purchase /Sales Ratio (R): A ratio determined by dividing the total volumes purchased
by the Company for general service customers for the twelve (12) month period ending
the preceding August 31 Production Month by the sum of the volumes sold to general
service customers during the same period. For the purpose of this computation. all
volumes shall be stated at 14.65 p.s.i.a. Such ratio as determined shall in no event seek to
recover more than 5% lost and unaccounted for gas loss unless expressly authorized by
the applicable regulatory authority.
3. Production Month: The month that gas cost related activities are completed.
4. Accounting Month: The month gas related activities are posted on the books and records
of the Company.
5. Commodity Cost: The Cost of Purchased Gas multiplied by the Purchase Sales Ratio.
6. Purchased Gas Adjustment (PGA): The rate per billing unit or the total calculation
under this Cost of Gas Clause, consisting of the commodity cost, a reconciliation
component (RC) and related fees and taxes.
PGA Rate (per Mcf sold) _ [(G * R) t RC] rounded to the nearest $0.0001
PGA Rate (per Ccf sold) = PGA Rate (per Mcf sold) 10
7. General Service Customer: residential, small commercial and large volume customers.
8. Reconciliation Audit: An annual review of the Company's books and records for each
twelve month period ending with the May Production Month to determine the amount of
over or under collection occurring during such twelve month period. The audit shall
determine:
a. the total amount paid for gas purchased by the Company to provide service to
its general service customers during the period;
b, the revenues received from operation of the provisions of this Cost of Gas
Clause reduced by the amount of revenue associated fees and taxes paid on
those revenues;
c. the total amount of refunds made to customers during the period and any other
revenues or credits received by the Company as a result of gas purchases or
operation of this Cost of Gas Clause; and
CENTERPOINT ENERGY RESOURCES CORP.
D /B /A/ CENTERPOINT ENERGY ENTEX
AND CENTERPOINT ENERGY TEXAS GAS
TEXAS COAST DIVISION
RATE SHEET
PURCHASED GAS ADJUSTMENT
RATE SCHEDULE NO. PGA -13
d. an adjustment, if necessary, for lost and unaccounted for gas during the period
identified in A2 in excess of five (5) percent of purchases.
9. Reconciliation Component (RC): The amount to be returned to or recovered from
customers each month from the August billing cycle through April billing cycle as a
result of the Reconciliation Audit.
10. Reconciliation Account: The account maintained by the Company to assure that over
time it will neither over nor under collect revenues as a result of the operation of this Cost
of Gas Clause. Entries shall be made monthly to reflect but not necessarily limited to:
a. the total amounts paid to the Company's supplier(s) for gas applicable to
general service customers as recorded on the Company's books and records;
b. any upstream transportation charges;
c. the cost of gas withdrawn from storage less the cost of gas injected into
storage;
d. fixed storage charges:
e. the revenues produced by the operation of this Cost of Gas Clause; and
f, refunds, payments, or charges provided for herein or as approved by the
regulatory authority.
11. Carrying Charge for Gas in Storage: A return on the Company's investment for gas in
storage.
B. COST OF GAS = Purchased Gas Adjustment (PGA)
In addition to the cost of service as provided under its general service rate schedule(s), the
Company shall bill each general service customer for the Cost of Gas incurred during the billing
period. The Cost of Gas shall be clearly identified on each customer bill.
C. DETERMINATION AND APPLICATION OF THE RECONCILIATION COMPONENT
If the Reconciliation Audit reflects either an over recovery or under recovery of revenues. such
amount, plus or minus the amount of interest calculated pursuant to Section D below, i f any, shall
be divided by the general service sales volumes, adjusted for the effects of weather and growth.
for the last preceding August billing cycle through April billing cycle. The Reconciliation
Component so determined to collect any revenue shortfall or to return any excess revenue shall be
applied for a nine (9) month period beginning with the next following August billing cycle and
continuing through the next following April billing cycle at which time it will terminate until a
new Reconciliation Component is determined.
D. PAYMENT FOR USE OF FUNDS
Concurrently with the Reconciliation Audit, the Company shall determine the amount by which
the Cost of Gas was over or under collected for each month within the period of audit. If the sum
of the monthly balances reflects an over collection during the period, the Company shall credit
CENTERPOINT ENERGY RESOURCES CORP.
D /B /A/ CENTERPOINT ENERGY ENTEX
AND CENTERPOINT ENERGY TEXAS GAS
TEXAS COAST DIVISION
RATE SHEET
PURCHASED GAS ADJUSTMENT
RATE SCHEDULE NO. PGA -13
into the Reconciliation Account during August an amount equal to the average annual balance
multiplied by 6 %.
If the sum of the monthly balances reflects an under collection during the period, the Company
shall debit into the Reconciliation Account during August an amount equal to the average annual
balance multiplied by 6 %.
E. CARRYING CHARGE FOR GAS IN STORAGE
A carrying charge for gas in storage will be calculated based on the arithmetic average of the
beginning and ending balance of gas in storage inventory for the prior calendar month times the
pre -tax rate of return as determined in Docket No. GUD 10432 and will be reflected on the
customer's bill.
F. SURCHARGE OR REFUND PROCEDURES
In the event that the rates and charges of the Company's supplier are retroactively reduced and a
refund of any previous payments is made to the Company, the Company shall make a similar
refund to its general service customers. Similarly. the Company may surcharge its general service
customers for retroactive payments made for gas previously delivered into the system. Tile
entire amount of refunds or charges shall be entered into the Reconciliation Account as they are
collected from or returned to the customers.
For the purpose of this Section the entry shall be made on the same basis used to determine the
refund or charge component of the Cost of Gas and shall be subject to the calculation set forth in
Section D, Payment for Use of Funds, above.
G. COST OF GAS STATEMENT
The Company shall file a copy of the Cost of Gas Statement with the Regulatory Authority by the
beginning of each billing month. (The Company shall file such initial Statement as Soon as is
reasonably possible.) The Cost of Gas Statement shall set forth:
1. the Cost of Purchased Gas:
2. that cost multiplied by the Purchase /Sales Ratio;
3. the amount of the cost of gas caused by any surcharge or refund:
4. the Reconciliation Component;
5. the revenue associated fees and taxes to be applied to revenues generated by the Cost of
Gas;
6. the Cost of Gas which is the total of items (2) through (5): and
7. the Carrying Charge for Gas in Storage.
The statement shall include all data necessary for the Customers and Regulatory Authority tc
review and verify the calculation of the Cost of Gas and the Carrying Charge for Gas in Storage.
CENTERPOINT ENERGY RESOURCES CORP.
D /B /A/ CENTERPOINT ENERGY ENTEX
AND CENTERPOINT ENERGY TEXAS GAS
TEXAS COAST DIVISION
RATE SHEET
PURCHASED GAS ADJUSTMENT
RATE SCHEDULE NO. PGA -13
The date on which billing using the Cost of Gas and the Carrying Charge for Gas in Storage is to
begin (bills prepared) is to be specified in the statement.
H. ANNUAL RECONCILIATION REPORT
The Company shall file an annual report with the Regulatory Authority which shall include but is
not necessarily limited to:
1. A tabulation of volumes of gas purchased and costs incurred listed by account or type of
gas, supplier and source by month for the twelve months ending with the May Production
Month will be available upon request;
2. A tabulation of gas units sold to general service customers and related Cost of Gas Clause
revenues for the twelve month period ending with the May Production Month will be
available upon request; and
3. A summary of all other costs and refunds made during the year and the status of the
Reconciliation Account. This report shall be filed concurrently with the Cost of Gas
Statement for August.
The Annual Report shall be filed in a format similar to the example format that follows.
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CENTERPOINT ENERGY RESOURCES CORP.
D /B /A CENTERPOINT ENERGY ENTEX
AND CENTERPOINT ENERGY TEXAS GAS
TEXAS COAST DIVISION
RATE SHEET
SCHEDULE OF MISCELLANEOUS SERVICE CHARGES
RATE SCHEDULE NO. MISC -14
Institution of service to residential or general service
$40
After -hours surcharge for each after -hours service call*
$47
Restore service after termination for non - payment, cut -off by customer or agent or for convenience
$40
of customer
After -hours surcharge for each after -hours service call*
$47
Turning off service to active meter - account not finalled (per trip)
$20
After -hours surcharge for each after -hours service call*
$47
Special meter test at customer's request (see General Rules and Regulations for special situations)
$15
same customer at same location is allowed one test free of charge every four years
Change customer meter **
$S5
Change residential meter location: Minimum charge
$350
Additional meters in manifold each
$55
(Plus cost of materials)
Tap Charge
N.C. * **
Disconnect service at main
$300
(Plus any costs arising out of any city ordinance or regulation or governing work in city streets)
(Plus other related costs)
Restore service at main after termination for non - payment
$300
(Plus cost of materials)
Temporary transfer of individually metered multi - family service from vacating tenant to apartment
N.C.
complex owner. (Applicable to read and transfer transactions only. Precedent written agreement
required.)
* Outside the hours of 8:00 A.M. to 5:00 P.M. CST Monday - Friday, on weekends, and on all Company
designated holidays.
** Meters changed at customer's request. Does not include changes due to meter failure and /or incorrect
measurement of usage.
* ** Except where Company is required to pay tap charge to pipeline supplier to serve the consumer. the consumer
shall reimburse Company.
CENTERPOINT ENERGY RESOURCES CORP.
D /B /A CENTERPOINT ENERGY ENTEX
AND CENTERPOINT ENERGY TEXAS GAS
TEXAS COAST DIVISION
RATESHEET
SCHEDULE OF MISCELLANEOUS SERVICE CHARGES
RATE SCHEDULE NO. MISC -14
OTHER CHARGES
11, Collection call - trip charge (not collected under miscellaneous service item no. 3 f urning oil $20
service to active meter)
12, Returned check $20
DEPOSITS
Up to the maximum amount allowed under the Railroad Commission of Texas Quality of Service Rule
§7,45(5)(C)(ii) (the "one -sixth rule "), If there is no billing history on the customer's account, then the one -
sixth rule will be applied to the customer's account based on similarly- situated customers located in the
geographic area.
TAX ADJUSTMENT
The Tax Adjustment will be calculated and adjusted periodically as defined in the Company's Tar Adjustment Rate
Schedule and Franchise Fee Adjustment Rate Schedule.
CENTERPOINT ENERGY RESOURCES CORP.
DB /A CENTERPOINT ENERGY ENTEX
AND CENTERPOINT ENERGY TEXAS GAS
TEXAS COAST DIVISION
RATE SHEET
RATE CASE EXPENSE RECOVERY RATE SCHEDULE NO. RCE -9.1
APPLICATION OF SCHEDULE
This schedule applies to all residential, small commercial, and large volume customers in the Texas Coast Division
impacted by the Company's Statement of Intent to Increase Rates filed on March 27, 2015.
This rate schedule is for the recovery of rate case expense ( "RCE ") and shall be in effect beginning on or after
August 21, 2015 for a thirty -six (36) month period or until all approved expenses are collected.
MONTHLY RATE RECOVERY FACTOR:
Residential $ 0.08 per bill
General Service -Small $ 0.08 per bill
General Service -Large $ 0.08 per bill
RULES AND REGULATIONS
Service under this schedule shall be furnished in accordance with the Company's General Rules and Regulations. as
such rules may be amended from time to time_ A copy of the Company's General Rules and Regulations may be
obtained from Company's office located at I I I I Louisiana Street. Houston. Texas.
COMPLIANCE
The Company will file annually. due on the of each a report with the Railroad Commission of
Texas ( "Commission "). The Company will send a copy of the report to counsel for the Texas Coast Utilities
Coalition, whose members include the cities of Angleton. Baytown, Clute, rreeport, League City. Pearland.
Shoreacres. West Columbia, and Wharton. Texas. The Company will also send a cop) of the report to counsel for
the Gulf Coast Coalition of Cities, whose members include the cities of Alvin, Brookshire, Clear Lake Shores.
Dickinson, Friends"ood. Fulshear. Kemah, Lake Jackson, La Marque, Manvel, Mont Belvieu, Morgan's Point.
Rosenberg, Santa Fe, Seabrook, Sugar Land, Taylor Lake Village, Texas City. Webster, and Weston Lakes, Texas.
The report shall detail the monthly collections for RCE surcharge by customer class and show the outstanding
balance. Reports for the Commission should be filed electronically or at the following address-
Tariff Compliance
Oversight and Safety Division, Gas Services
Railroad Commission of Texas
P.O. Drawer 12967
Austin. TX 78711-2967
CENTERPOINT ENERGY RESOURCES CORP.
D /B /A CENTERPOINT ENERGY ENTEX
AND CENTERPOINT ENERGY TEXAS GAS
TEXAS COAST DIVISION
RATE SHEET
TCUC 9791 APPEAL RATE CASE EXPENSE NO. RCE -9.2
APPLICATION OF SCHEDULE
This schedule applies to all residential, small commercial, and large volume customers in the cities of Angleton,
Baytown, Clute. Freeport. League City. Pearland. Shoreacres. West Columbia, and Wharton (Texas Coast Utility
Coalition ( "TCUC ") Cities) in the Texas Coast Division impacted by the Company's Statement of Intent to Increase
Rates filed on March 27, 2015 that resulted in the Final Order issued in GUD No. 10432, and consolidated cases.
This rate schedule is for the recovery of the TCUC GUD No. 9791 Appeal rate case expense ( "RCL ") and shall be in
effect beginning on or after August 21. 2015 for a thirty -six (36) month period or until all approved expenses are
collected. The monthly recovery rate below may be modified in the last several months of the recoverN to account
for variable sales volumes to achieve a recovery balance of zero, or as close to zero as possible.
MONTHLY RATE RECOVERY FACTOR:
Residential $ 0.0043615 per Ccf
General Service -Small $ 0.0012487 per Ccf
General Service -Large $ 0.0003718 per Ccf
RULES AND REGULATIONS
Service under this schedule shall be furnished in accordance with the Company's General Rules and Regulations, as
such rules may be amended from time to time. A copy of the Company's General Rules and Regulations may, be
obtained from Company's office located at I I I 1 Louisiana Street. Houston. Texas.
GUD No. 10432
Settlement Exhibit B
Page 1 of i
CenterPoint Energy
Texas Coast Division
Rate Design - Settlement
Line
Commercial
No.
Particulars
Total
Residential
Small
Large
1
Cost of Service to be Recovered from GSS and GSLV
$
3,903,419
$ 677,913
1a
Current Rate Revenue Recovery
$
56,291,674
$
52,020,457
$
3,411,002
$ 860,215
1b
Settlement Increase
$
4,900,000
1c
Settlement Revenue Requirement
$
61,191,674
$
56,610,343
$
3,903,419
$ 677,913
1d
Revenue Requirement Allocation Factors
92.5131%
6.3790%
1 10790/:
2
Less.
3
Houston Division Margin
4
Customer Charge
$
644,201
$
594,659
$
25,446
$ 24,096
5
Distribution Charge
66 177
$
39 164
$
10 672
16.341
6
Total - Customers on Houston Rates in Texas Coast
$
710,378
$
633,823
$
36,118
$ 40,437
7
Net Cost of Service to be Collected
$
60,481,297
$
55,976,520
$
3,867,300
$ 637,476
8
Net Customer Charge Cost of Service
9
Number Bills
3 357 888
3 200 388
153 348
4 152
10
11 Settlement Customer Charge
12 Customer Charge Revenue
13 Net Distribution Charge Revenue Required
14 Ccf Billing Determinants
15 Total Billing Determinants
16 Distribution Rates
17 All Ccf - Residential
18 All Ccf - General Service - Small
19 All Ccf - General Service - Large
20 Distribution Charge Revenue
21 Total Revenue - Design
22 Total Revenue Over(Under)
15.00 1550 45.00
$ 50,569,554 $ 48,005,820 $ 2,376,894 $ 186,840
$ 9 911 743 $ 7970700 $ 1 490 406 $ 450 636
106 866 191 22 197 311 10 250 222
$ 0.0746
$ 0.0671
$ 00440
912 668 7972,218 1,489,440 451010
61;192,600 56,611,861 3,902,452 678,287
$ 925 $ 1,518 $ (966) L. 374
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GUD NO. 10432, consolidated
STATEMENT OF INTENT OF §
CENTERPOINT ENERGY RESOURCES § BEFORE THE
CORP., D /B /A CENTERPOINT ENERGY §
ENTEX AND CENTERPOINT ENERGY § RAILROAD COMMISSION
TEXAS GAS TO INCREASE RATES ON §
A DIVISION -WIDE BASIS IN THE § OF TEXAS
TEXAS COAST DIVISION §
AFFIDAVIT OF MARK A. SANTOS
Before me, the undersigned authority, on this date personally appeared Mark A. Santos,
known to me to be the person whose name is subscribed below, and being by me first duly
sworn, stated upon oath as follows:
"My name is Mark A. Santos. I am a partner in the Austin, Texas law firm of Parsley
Coffin Renner LLP, and have practiced law since 2002. I have extensive experience
representing and defending clients before the Railroad Commission of Texas and Public Utility
Commission of Texas. I am over 18 years of age, of sound mind, and fully competent to make
this affidavit. Each statement of fact herein is true and of my own personal knowledge.
1 am counsel of record for CenterPoint Energy Resources Corp., d/b /a CenterPoint Energy
Entex and CenterPoint Energy Texas Gas ( "CenterPoint Texas ") in Gas Utilities Docket No.
10432, consolidated. Attached to this Affidavit are invoices documenting an actual amount of
$459,887.57 in rate case expenses incurred by CenterPoint Texas in this docket through May 30,
2015. This amount includes legal expenses incurred preparing the filing, expenses incurred by
professional consultants retained to provide direct and rebuttal testimony, public notice, and
incidental expenses. The invoices are detailed and itemized.
I have reviewed the billings of Parsley Coffin Renner LLP submitted to CenterPoint
Texas for legal services performed in this proceeding through April 30, 2015, and I affirm that
those billings in the amount of $200,225.78 accurately reflect the time spent and expenditures
incurred by Parsley Coffin Renner LLP on CenterPoint Texas's behalf. The attorneys billing on
the file have hourly rates of between $225 and $500, with the majority of the time billed by
myself. My hourly billing rate is $375, which is within the range deemed reasonable in prior rate
cases for lawyers having similar experience providing similar services. The hours spent to
perform the tasks assigned to Parsley Coffin Renner LLP were necessary to complete those tasks
in a professional manner on a timely basis. The nature of the work performed is typical of a
contested rate proceeding such as this. Further, there was no duplication of services or testimony
and the settled result in this proceeding demonstrates that the Company's request for a rate
change was warranted.
In addition to the amounts incurred through April 30, 2015, CenterPoint Texas has
incurred additional legal expenses equal to approximately $140.000 for work performed in May
and June 2015, which has not yet been processed by CenterPoint Texas. The nature of this work
included answering discovery questions, negotiating discovery disputes, motions practice,
preparation of rebuttal testimony, preparation of errata, preparation for hearing, preparation for
technical and settlement conferences, settlement negotiations, meeting and communicating with
parties to negotiate a settlement, and the drafting of settlement terms. In addition, CenterPoint
Texas will incur additional expense through completion of the case, which expenses include
finalizing settlement documents, presentation of settlement to Examiners, potential discovery and
briefing before the Examiners, and attending Commission conferences. Based on my experience
in administrative proceedings, including proceedings in which the parties seek approval of a
Unanimous Settlement Agreement as in this case, I estimate that legal expenses from July 1,
2015 through completion of the case will be approximately $20,000.00, bringing the total
amount of actual and estimated legal fees necessary to complete this proceeding to $360,225.78.
In addition to legal expenses, CenterPoint Texas incurred other rate case expenses, which
included expenses incurred by professional consultants retained to provide direct and rebuttal
testimony, preparation of the filing, public notice, responding to discovery, and incidental
expenses. Again, actual detailed and itemized invoices through June 30, 2015 are attached. The
total amount of other regulatory rate case expenses incurred through June 30, 2015, is
$259,661.79.
The total amount of rate case expenses for CenterPoint Texas reflected in the Unanimous
Settlement Agreement includes actual and estimated legal fees of $360,225.78 and required
regulatory expenses equal to $259,661.79. CenterPoint Texas requests that the Commission
authorize recovery of its rate case expenses related to this docket in the amount of $619,887.57.
CenterPoint Texas will supplement this filing with additional invoices as they are processed.
CenterPoint Texas seeks recovery only of those expenses that are actually incurred, and
any rate case expense surcharge will collect from ratepayers only the amount actually incurred
and authorized by the Commission. I note, however, that this estimate presumes approval of the
Unanimous Settlement Agreement and no appeal of the Commission's final order. CenterPoint
Texas reserves the right to revise this estimate to the extent that additional litigation becomes
necessary."
Mark A. Santos
SWORN AND SUBSCRIBED before me on thiN9114(day of July, 2015.
-------------------- - 1 4
ROBINSON
NOTARY PUBLIC otary Public in and for the State of Texas
ettls d T =
ff*9j!VTA-T
Comm. Exp. 12-032018
2
GAS UTILITIES DOCKET NO. 10432
STATEMENT OF INTENT FILED BY §
CENTERPOINT ENERGY RESOURCES § BEFORE THE
CORP., D/B /A CENTERPOINT ENERGY §
ENTEX AND CENTERPOINT ENERGY § RAILROAD CONIIWSSION
TEXAS GAS TO INCREASE RATES ON §
A DMSION -WIDE BASIS IN THE § OF TEXAS
TEXAS COAST DMSION §
§
AFFIDAVIT OF ALFRED R. HERRERA RELATED TO RATE CASE EXPENSES
INCURRED BY TEXAS COAST UTILITIES COALITION OF CITIES
STATE OF TEXAS
COUNTY OF TRAVIS
Before me, the undersigned authority, on this day personally appeared Alfred R. Herrera,
being by me first duly sworn, on oath deposed and said the following:
My name is Alfred R. Herrera, and I am a principal of Herrera & Boyle, PLLC. I have
over 31 years of experience in legal and legislative matters related to the utility industry
(telecommunication, electric, and gas). I have litigated numerous electric and gas rate
matters. The Texas Coast Utilities Coalition ( "TCUC'j of cities retained the firm of
Herrera & Boyle, PLLC in connection with the Statement of Intent submitted to the
TCUC cities and the Railroad Commission of Texas ( "Commission's by CenterPoint
Energy Resources Corp., d/b /a CenterPoint Entex and CenterPoint Energy Texas Gas
( "CenterPoint" or "Company'l on about March 27, 2015 ( "March 27`" Statement of
Intent").
2. I am familiar with the work performed by Herrera & Boyle and the technical consultants
on behalf of TCUC in connection with CenterPoint's March 17`x' Statement of Intent. I
am over 18 years of age and I am not disqualified from making this affidavit. My
statements are true and correct.
3. The firm of Herrera & Boyle has provided services to TCUC in these proceedings
including, but not limited to, the following activities: the provision of legal advice and
strategy to TCUC; negotiating schedules and substantive issues; identification of
consultants and recommendations to the client regarding consultants; coordination of
issue development; legal research; preparation and filing of pleadings and briefs;
discovery; preparation for and participating in prehearing conferences, hearings; and
briefing clients and discussions with consultants.
4. I am responsible for coordinating and supervising the efforts of my firm's personnel
pertaining to the services rendered to TCUC in these dockets. I have personally reviewed
all billings for all work performed (legal and consulting) in connection with
CenterPoint's March 27`h Statement of Intent.
5. Invoices and backup for the fees and expenses charged to TCUC are provided to the City
of Baytown for approval and forwarding to CenterPoint for payment. My firm's billings
are associated with efforts that were reasonable and necessary for development of the
record and advocacy of TCUC position. Duplication of effort was avoided.
6. My firm's individual charges and rates are reasonable, consistent with the rates billed to
others for similar work and comparable to rates charged by other professionals with the
same level of expertise and experience. The amounts charged for such service are
reasonable and there has been no double billing of charges. No meal expense has been
billed by any attorney or other Herrera & Boyle personnel. No charges have been
incurred or billed for luxury items, first -class airfare, limousines, alcohol, sporting events,
or entertainment.
For the period March 29, 2015 through June 30, 2015, Herrera & Boyle has billed
$71,290.29 related to CenterPoint's March 27`h Statement of Intent. This figure includes
$38,035.29 in legal fees and expenses and $33,255.00in consultant fees and expenses.
The fees and expenses incurred through June 30, 2015 were necessary to advise TCUC on
the rate package filing, review the application, identify issues, coordinate activities, retain
and work with consultants, engage in discovery, draft pleadings, and prepare for and
attend pre - hearings, attend settlement meetings. Invoices for CenterPoint's March 27`h
Statement of Intent are provided at Exhibit 1.
The attorney hourly rates of $270 -$345, upon which the billings are based, are
comparable to hourly rates charged to other clients for comparable services during the
same time frame. Herrera & Boyle's rates are at the lower end of the range of reasonable
hourly rates compared to the rates charges by other lawyers with similar experience
providing similar services.
The hours spent to perform the tasks assigned to Herrera & Boyle were necessary to
complete the required tasks in a professional manner on a timely basis. My many years in
working with and supervising attorneys and consultants in utility rate cases at the
Commission and the Public Utility Commission facilitates efforts to keep rate case
expenses reasonable.
10. Ms. Connie Cannady is an Executive Consultant with the firm of NewGen Strategies &
Solutions, LLC in the firm's Energy Practice. She has participated in over 50 utility rate
proceedings over a 30 -year career. Her time and efforts in CenterPoint's March 27`h
Statement of Intent were coordinated by me. Because of her extensive background and
experience, including knowledge of CenterPoint, Ms. Cannady was able to work very
efficiently and accomplish her assignment with fewer hours than 1 would expect other
consultants or expert witnesses would require. Ms. Cannady's time, effort and associated
fees in CenterPoint's March 277 Statement of Intent of $33,255.00 are reasonable and
necessary. Ms. Constance's resume is provided at Exhibit 2.
2
11. I also coordinated TCUC's participation in this proceeding with the other group of cities
- the Gulf Coast Utilities Coalition of Cities ( "GCCC'j - in this proceeding to minimize,
if not eliminate, duplication of effort between GCCC's participation in this proceeding
and TCUC's participation, as well as to ensure no duplication of effort regarding the
issues addressed by Ms. Cannady in her evaluation of CenterPoint's March 274
Statement of Intent and that of GCCC's consultant.
12. The invoices submitted by Herrera & Boyle include a description of services performed
and time expended on each activity. The invoices for CenterPoint's March 27`x' Statement
of Intent have been provided to CenterPoint. Herrera & Boyle has documented all
charges with time sheets, invoices and records. The documentation in this case is similar
to that provided in many previous cases at the Commission.
13. Legal expenses connected with CenterPoint's March 27`h Statement of Intent total
$71,290.29. There are no luxury items associated with Herrera & Boyle's expenses. The
total consists of reimbursable items such as courier services, express mail, postage and
shipping, and photocopying. Internal copying charges were limited to 15¢ per page.
14. My responsibilities included client communication, strategy development, overall case
management, discovery review, review and edit testimony, prepare for hearing, attend
pre - hearings, and attendance at settlement meetings.
15. To complete CenterPoint's March 27`h Statement of Intent, I estimate that the cities
represented by Herrera & Boyle will incur additional fees and expenses of $4,550.00. My
estimate is based on actual experience in previous rate cases at the Commission and at the
Public Utility Commission. TCUC will request reimbursement only for actual amount
billed for work that has been performed.
16. TCUC reserves the right to amend this affidavit and its request for reimbursement as
more information is gathered over the course of CenterPoint's March 27`h Statement of
Intent.
17. Statements in this affidavit are true and known biRR:.ft76-Tera
I
SWORN AND SUBSCRIBED before me on this the I of July 2015.
MARIANN N. WO00 Notary Public, State of Texas
(seal) No" Mft. stare at R"M
lie MV Cammismon EqN
November 24, 201 a
EXHIBIT NO. I
Texas Coast Utilities Coalition 1 of 40
- i'mvoire
yDAte
Involev Bolling Through ? invatce
No Pw1od Pwaad Amount
r' obi Billed to I
oam
e en ra ag es
Solutions, LLC
5/18/15
3476
4/25/15
5/15/15
$7,350.00
$7,350.00
6/18/15
3572
5/16/15
6/15/15
$20,617.50
$27,967.50
6/30/15
3618
6/16/15
6/30/15
$5,287.50
$33,255.00
GDS total:
$33,255.00
Her & Boyle, PLLC
(legal fees & expenses)
5/11/15
3/29/15
4/30/15
$3,637.00
$3,637.00
6/10/15
5/1/15
5/31/15
$5,584.45
$9,221.45
7/1/15
6/1/15
6/30/15
$28,813.84
$38,035.29
HS total:
HB + Consultant Actual Fees &Expenses
$38,035.29'
$71,290.29
HB Estimated Fees & Expenses to
Complete Case
$4,550.QQ
Total HB + Consultant Fees & Expenses
$75,840.29
GUD 10432 Rate Case Expense Summary
GAS UTILITIES DOCKET NO. 10432
STATEMENT OF INTENT FILED BY § BEFORE THE
CENTERPOINT ENERGY ENTEX TO §
INCREASE THE RATES IN THE § RAILROAD COMMISSION
UNINCORPORATED AREAS OF THE §
TEXAS COAST DIVISION § OF TEXAS
AFFIDAVIT OF CHRISTOPHER L. BREWSTER
RELATED TO THE RATE CASE EXPENSES OF
GULF COAST COALITION OF CITIES
STATE OF TEXAS §
COUNTY OF TRAVIS §
BEFORE ME, the undersigned authority, on this day personally appeared Christopher L.
Brewster who being by me first duly sworn, on oath deposed and said the following:
My name is Christopher L. Brewster. I am a principal with the law firm of Lloyd
Gosselink Rochelle and Townsend, P.C. ( "Lloyd Gosselink ") and counsel for the Gulf Coast
Coalition of Cities ( "GCCC ") in Gas Utilities Docket ( "GUD ") No. 10432. I have addressed and
participated in utility matters since 2003, starting at the Public Utility Commission of Texas
( "PUC "). Since leaving the PUC in 2006, .I have represented entities before the PUC and the
Railroad Commission ( "Commission ") for over nine years. I have represented municipalities in
numerous ratemaking proceedings since 2006.
2. I have reviewed the work performed by Lloyd Gosselink and the technical
consultants on behalf of GCCC in connection with GUD No. 10432 concerning the Statement of
Intent filed by CenterPoint Energy Entex to Increase the Rates ill the Unincorporated Areas of
the Texas Coast Division. I am over the age of 18 years and am not disqualified from making
this affidavit. My statements are we and correct.
3. I have reviewed the billings of Lloyd Gosselink submitted to GCCC for legal
services performed in GUD No. 10432. I affirm that those billings accurately reflect the time
22080514798359
spent and expenditures incurred by Lloyd Gosselink on GCCC's behalf. Those billings were
accurately calculated before they were tendered, and there was no double billing. None of the
charges billed to GCCC have been recovered through reimbursement for other expenses. The
expenses charged were associated with the review of CenterPoint's Statement of intent in GUD
No. 10432 and were necessary to advise GCCC and accomplish tasks in this proceeding. Total
rate case expenses (inclusive of legal fees, consultant charges, and other expenses) for GUD
No. 10432 through June 30, 2015 are summarized in the chart attached to this affidavit as
Attachment A.
4. For the period of March through June 30, 2015, Lloyd Gosselink has billed
$49,589.60 for legal services in GUD No. 10432. The fees and expenses incurred through June
30, 2015 were necessary to: advise GCCC on the review of CenterPoint's Statement of Intent,
identify issues, retain and work with consultants, address discovery matters, prepare testimony,
participate in settlement discussions, and negotiate the settlement agreement.
5. The attorneys' hourly rates of $165 -325, upon which the billings are based, are
the same hourly rates charged other clients for comparable services during the same time frame.
Our firm's rates are at the lower end of the range compared to the rates charged by other lawyers
with similar experience providing similar services. The hours spent to perform the tasks
assigned to Lloyd Gosselink were necessary to complete those tasks in a professional manner on
a timely basis. The participating attorneys' many years of experience participating in utility rate
cases aid in our efforts to keep rate case expenses reasonable.
6. Invoices from Lloyd Gosselink also include fees and expenses from ReSolved
Energy Consulting, LLC for work performed by Karl Nalepa and his assistant in the amount of
$31,869.34. Mr. Nalepa is a regulatory expert engaged to present testimony and consult on the
issues in this case. Mr. Nalepa's hourly rate for this proceeding is $260. This is the same or
220810514798359 ?
similar hourly rate charged other clients for comparable services during the same time period.
Mr. Nalepa and his assistant reviewed the CenterPoint's Statement of Intent, identified issues,
prepared and reviewed discovery questions and responses, prepared direct testimony, assisted in
settlement negotiations.
7. The invoices submitted by Lloyd Gosselink include a description of services
performed and time expended on each activity. The invoices for GUD No. 10432 through June
30, 2015 are included as Attachment B to this affidavit. Lloyd Gosselink has documented all
charges with time sheets, invoices and records. The documentation in this case is similar to that
provided in many previous ratemaking proceedings at the Railroad Commission.
8. I have made a detailed review of actual invoices for consultants and legal services
for March through June 30, 2015. 1 conclude that the services rendered in these months were
necessary for GCCC's participation in this proceeding and that the fees and expenses were
reasonable in relation to the complexity of the issues addressed. Specifically, I made the
following significant findings during my review:
• The hourly rates charged by GCCC's consultants and attorneys are
within the range of reasonable rates;
• The number of individuals working on this matter at any given
time was minimized;
• Consultants and attorneys accurately documented hours worked
and services provided on their invoices;
• There were no time entries by any individual that exceeded 12
hours per day on any single matter or on a combined basis when
work was performed on these cases; and
• There were no expenses that are subject to special scrutiny (e.g.,
luxury hotels, valet parking, designer coffee, airfare, meals).
9. I have reviewed all of the consultants' and attorneys' qualifications, along with a
critical evaluation of their work product and the fees that they charged GCCC, and have found
220810514798359 3
their services and fees to be reasonable and a good value. Each consultant and attorney provided
services that were necessary for GCCC to fairly represent the interests of the members of GCCC
in this rate- setting proceeding. All of the actual fees and expenses incurred to date are
substantiated by detailed invoices, which I have included.
10. In addition to the expenses incurred through June 30, 2015, Lloyd Gosselink will
incur fees and expenses in GUD No. 10432 beyond that date associated with continued work to
finalize settlement documents subsequent to the date of this affidavit.
In consideration of this activity, GCCC estimates that its remaining expense of
participating in this case beyond June 30, 2015 will not exceed $5,000. In the event that the
settlement in this matter is not adopted, or some additional process or litigation is required to
bring this matter to a close, GCCC would seek to quantify an additional rate case expense
amount.
t I. The total amounts requested for expenses through June 30, 2015 of $81,458.94
for GUD No. 10432 and the estimate beyond that that date, are reasonable given the complexity,
importance, and magnitude of this case, the nature of GCCC's case, and the number of issues.
Dated: July 1, 2015.
e�g "-Z ��
CHRISTOPHER L. BREWSTER
SUBSCRIBED AND SWORN TO BEFORE ME, the undersigned authority, on this Ist
day of July, 2015.
• JUDY A � c
NMAW ware Q O'er
M" at T*= Nota&ublic
Catm ft OW ISMO17
2208\05\4798359 4
Attachment A
GUD No. 10432 - CenterPoint 2015 Texas Coast Division Rate Case
GCCC's Rate Case Expense Tracking
Invoice
Date
Invoice
No.
Billing
Period
Through
Period
invoice
Amount
Total. Bi11ed to
Date
Lloyd Gosselink
4/13/15
97463860
3/1/15
3/31/15
$1,487.50
$1,487.50
5 /12/15
97464751
4/1/15
4/30/15
$7,314.73
$8.802.23
6/10/15
97465319
5/1/15
5/31/15
$6,258.17
$15,060.40
7/1/15
97465816
6/1/15
6/30/15
$34,529.20
$49,589.60
Total LG:
$49,589.60
Resolved Energy
Consulting, LLC
5/6/15
3556
3/30/15
4/30/15
$9,670.00
$9,670.00
6/3/15
3568
511115
5/31/15
$6,360.00
$16,030.00
6/30/15
3579
6/1/15
6/30/15
$15,839.34
$31,869.34
Total Resolved:
$31,869.34
LG + Consultant
4/13/15
97463860
3/1/15
3/31/15
$1,487.50
$1,487.50
5/12/15
97465799
4/1/15
4/30/15
$16,984.73
$18,472.23
6/10/15
97465319
511115
5/31/15
$12,618.17
$31,090.40
7/1/15
97465816
6/1/15
6/30/15
$50,368.54
$81,458.94
LG + Consultant Total:
$81,458.94
Estimate to
completion:
$$,000.00
Grand Total: 1
$86,458.94
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GUD No 10432
Settlement Exhibit E
CenterPoint Energy 1 of 3
Texas Coast Division
September 30, 2014 Number of Customers
Number of Customers
Line
General Service
No.
City
Residential
Small Large Volume
1
Alvin Env
691
16
0
2
Alvin Inc
4,699
382
14
3
Angleton Env
107
18
0
4
Angleton Inc
4,078
264
8
5
Bacliff
2,037
97
1
6
Barrett's Settlement
642
32
0
7
Baytown Env
6,332
210
0
8
Baytown Inc
14,744
775
55
9
Beach City Env
275
8
0
10
Beach City Inc
224
3
0
11
Beasley Env
2
0
0
12
Beasley Inc
94
12
0
13
Boling Env
229
17
0
14
Brookshire Env
592
103
0
15
Brookshire Inc
228
66
10
16
Brookside Village Inc
446
11
0
17
Channel Area
1
16
0
18
Clr Lake Shores Env
25
4
0
19
Or Lake Shores Inc
398
16
0
20
Clute Env
61
1
0
21
Clute Inc
1,924
165
4
22
Columbia Lakes
426
10
0
23
Crosby
966
140
1
24
Damon Env
104
9
0
25
Danbury Env
45
1
0
26
Danbury Inc
397
27
0
27
Deer Park Inc
0
15
1
28
Dickinson Env
1,029
30
0
29
Dickinson Inc
3,924
196
8
30
East Bernard Env
3
10
0
31
East Bernard Inc
338
54
0
32
El Lago Inc
874
19
0
33
Freeport Env
0
8
0
34
Freeport Inc
2,174
177
4
35
Friendswood Env
2,437
25
0
36
Friendswood Inc
9,006
336
9
37
Fulshear Env
186
41
0
38
Fulshear Inc
1,556
116
0
39
Glen Flora Env
36
6
0
40
Highlands Env
2,760
91
1
41
Hillcrest Vilg Env
139
0
0
42
Hillcrest Vilg Inc
267
2
0
43
Hitchcock Env
111
6
0
44
Hitchcock Inc
1,348
82
1
45
Houston Annex
15
112
0
46
Houston Inc
978
53
3
47
Huffman Env
0
0
2
GUD No. 10432
Settlement Exhibit E
CenterPoint Energy 2 of 3
Texas Coast Division
September 30, 2014 Number of Customers
Number of Customers
Line
General Service
No.
City
Residential
Small Large
Volume
48
Hungerford Env
84
12
0
49
lago Env
59
4
0
50
Iowa Colony
658
57
0
51
Jones Creek Env
39
4
0
52
Jones Creek Inc
467
10
0
53
Katy Env
10,832
674
0
54
Katy Inc
3,801
313
13
55
Kemah Env
88
2
0
56
Kemah Inc
511
65
10
57
Kendleton Env
1
0
0
58
Kendleton Inc
33
3
0
59
La Marque Inc
4,346
230
3
60
La Porte Env
4
15
0
61
La Porte Inc
7,718
379
9
62
Lake Jackson Env
91
2
0
63
Lake Jackson Inc
7,122
254
12
64
League City Inc
24,009
887
16
65
Liverpool Env
149
2
0
66
Liverpool Inc
100
8
2
67
Manvel Env
274
18
0
68
Manvel Inc
1,132
81
1
69
Missouri City Inc
1,438
37
0
70
Morgan's Point Inc
118
16
0
71
Mt. Belvieu Env
410
28
0
72
Mt. Belvieu Inc
1,058
94
1
73
Needville Env
69
19
0
74
Needville Inc
641
58
1
75
New Gulf Env
25
9
0
76
Old Ocean Env
25
4
0
77
Orchard Env
8
1
0
78
Orchard Inc
92
8
0
79
Oyster Creek Env
54
2
0
80
Oyster Creek Inc
112
18
0
81
Pasadena Env
0
5
0
82
Pasadenalnc
825
18
4
83
Pearland Env
8,099
211
0
84
Pearland Inc
26,657
978
36
85
Pecan Grove Env
21,541
896
0
86
Pleak Inc
14
1
0
87
Richmond Env
3,327
302
0
88
Richmond Inc
2,043
177
14
89
Richwood Env
281
4
0
90
Richwood Inc
810
32
0
91
Rosenberg Env
3,646
201
0
92
Rosenberg Inc
6,370
517
17
93
Rosharon Env
133
27
0
94
San Leon Env
739
33
0
CenterPoint Energy
Texas Coast Division
September 30, 2014 Number of Customers
Line
Number of Customers
No.
City
95
Santa Fe Env
96
Santa Fe Inc
97
Seabrook Inc
98
Shoreacres Inc
99
Sienna Plantation
100
Sugar Land Env
101
Sugar Land Inc
102
Taylor Lake Vilg Inc
103
Teal Run
104
Texas City Inc
105
Van Vleck Env
106
Wallis Env
107
Wallis Inc
108
Webster Env
109
Webster Inc
110
West Columbia Env
111
West Columbia Inc
112
Weston Lakes Env
113
Weston Lakes Inc
114
Wharton Env
115
Wharton Inc
116 TOTAL
GUD No. 10432
Settlement Exhibit E
3 of 3
269,940 12,902 354
Note For ratemaking purposes, the cities of Houston, Deer Park, Missouri City, and Pasadena are part of the
Company's Houston Division; however, the corporate limits of those cities extend into the Texas Coast
Division. The minimal revenues, expenses, and plant of these cities that are in the Texas Coast Division are
reflected in this application. The Company is not requesting a rate change for these cities
Number of Customers
General Service
Residential
Small Large Volume
83
3 0
1,930
94 1
3,246
147 6
583
9 0
13
0 0
15,000
167 0
19,889
626 36
1,399
10 0
5,966
203 0
9,738
524 17
221
22 0
6
2 0
252
29 1
0
1 0
448
212 24
103
11 0
774
89 0
212
7 0
1,227
37 0
80
3 0
1,769
208 8
269,940 12,902 354
Note For ratemaking purposes, the cities of Houston, Deer Park, Missouri City, and Pasadena are part of the
Company's Houston Division; however, the corporate limits of those cities extend into the Texas Coast
Division. The minimal revenues, expenses, and plant of these cities that are in the Texas Coast Division are
reflected in this application. The Company is not requesting a rate change for these cities
ATTACHMENT B
CenterPoint and Texas Coast
Utilities Coalition of Cities
Rule 11 Agreement
GUD Nos. 9791, 9910, 10007, and
10097
Parsley Coffin Renner
A Limited Liability Partnership
July 2, 2015
Alfred R. Herrera
Attorney for Texas Coast Coalition of Cities
816 Congress Avenue, Suite 1250
Austin, Texas 78701
Post Office Box 13366
Austin, Texas 78711
Telephone (512) 879 -0900
Fax (512) 879 -0912
Re: GUD 10432, Statement of Intent of CenterPoint Energy Resources Coin.. d/h /a
CenterPoint Energy Entex and CenterPoint Energy Texas Gas to Increase Rates
on a Division-wide Basis in the Texas Coast Division
Mr. Herrera:
This letter confirms our agreement regarding the disposition of certain cases described
below and also referenced in the Unanimous Settlement Agreement signed by CenterPoint
Energy Resources Corp., d/b /a CenterPoint Energy Entex and CenterPoint Energy Texas Gas
( "CenterPoint" or the "Company ") and the Texas Coast Utilities Coalition ( "TCUC ") in Gas
Utilities Docket ( "GUD ") No. 10432.
Pursuant to Rule 11 of the Texas Rules of Civil Procedure, TCUC and CenterPoint agree
to the following:
1. As part of the Unanimous Settlement Agreement in GUD No. 10432, and within
twenty days from the Railroad Commission's approval of that Agreement, TCUC
agrees to withdraw its pending appeal in the Remand of GUD No. 9791 and its
appeals of GUD Nos. 9910, 10007 and 10097, which are currently pending in Travis
County District Courts (docketed as D- 1- GN -10- 001189. D- 1- GN -11- 001472, D -1-
GN -12- 000930, D- 1 -GN- 12-00093 1, and D- 1- GN -12- 000932).
2. Within thirty (30) days from all TCUC cities having issued an ordinance or resolution
approving the Unanimous Settlement Agreement in GUD No. 10432, approving the
rate case expense tariff attached to this agreement, and TCUC having provided an
invoice for actual amounts incurred and yet to be reimbursed, CenterPoint shall
reimburse TCUC its expenses related to GUD No. 9791 and to GUD Nos. 9910,
10007 and 10097, including related appeals, in the amount of $405,000 and
CenterPoint shall recover TCUC's unreimbursed expenses associated with these
proceedings through a surcharge in the Cities of Angleton, Baytown. Clute, Freeport,
League City, Pearland, Shoreacres, West Columbia, and Wharton. Texas
(collectively, "TCUC Cities ") and the Company agrees not to seek recovery of its
expenses associated with these appeals. The recovery period for the applicable
98 San Jacinto Boulevard, Suite 1450, Austin, Texas 78701
Page 2 of 2
surcharge in the TCUC Cities shall be thirty-six months and the surcharge shall be
computed and applied based on the volume of gas sold by CenterPoint in the TCUC
Cities.
Invoices will be sent to the following address for processing:
Thomas Stevens
Director of Regulatory Affairs
CenterPoint Energy
P.O. Box 2628
Houston, Texas 77252 -2628
Please sign below to indicate your agreement to these terms
Best regards
Mark Santos
Attorney for CenterPoint
AG D:
Alfred R. Herrera
Attorney for Texas Coast Coalition of Cities
98 San Jacinto Boulevard, Suite 1450, Austin, Texas 78701