CC Resolution No. 2583RESOLUTION NO. 2583
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BAYTOWN,
TEXAS, SUSPENDING THE EFFECTIVE DATE FOR NINETY (90) DAYS IN
CONNECTION WITH THE RATE INCREASE FILING MADE ON OR
ABOUT APRIL 5, 2019, BY CENTERPOINT ENERGY HOUSTON
ELECTRIC LLC; AUTHORIZING THE CITY'S CONTINUED
PARTICIPATION IN A COALITION OF CITIES KNOWN AS THE "TEXAS
COAST UTILITIES COALITION"; AUTHORIZING PARTICIPATION IN
PROCEEDINGS AT THE PUBLIC UTILITY COMMISSION OF TEXAS;
AUTHORIZING THE HIRING OF ATTORNEYS AND CONSULTANTS;
REQUIRING REIMBURSEMENT OF REASONABLE LEGAL AND
CONSULTANT EXPENSES; REQUIRING PROOF OF NOTICE; AND
PROVIDING FOR THE EFFECTIVE DATE THEREOF.
WHEREAS, CenterPoint Energy Houston Electric ("CEHE" or "Company") filed a
Statement of Intent with the City on or about April 5, 2019, to change its rates within the
corporate limits of the City of Baytown (the "City"), specifically to increase its annual revenue
for its retail transmission and distribution services by approximately $154 million, which equates
to an increase of approximately 7.4 percent, and by about $6.8 million for its wholesale
transmission service, which equates to an increase of approximately 1.8 percent; and
WHEREAS, the City is a regulatory authority under the Public Utility Regulatory Act
("PURA") and, under Chapter 33, §33.001, et seq. of PURA, has exclusive original jurisdiction
over CEHE's rates, operations, and services within the City; and
WHEREAS, in order to maximize the efficient use of resources and expertise in
reviewing, analyzing and investigating CEHE's rate request and its changes in tariffs, it is
prudent to coordinate the City's efforts with a coalition of similarly situated municipalities; and
WHEREAS, the City, in matters regarding applications by CEHE to change rates, has in
the past joined with other local regulatory authorities to form an alliance of cities known as
Texas Coast Utilities Coalition ("TCUC"), and hereby continues its participation in TCUC; and
WHEREAS, in CEHE's prior general rate case submitted in June, 2010, in Docket No.
38339 before the Public Utility Commission of Texas ("PUCT"), CEHE requested an increase of
about $110 million and the PUCT approved an increase of about $15 million in large part due to
the City's participation in TCUC and coordination with other cities and their review of CEHE's
application; and
WHEREAS, CEHE's rate request consists of a voluminous amount of information
including CEHE's rate -filing package, exhibits, schedules, and workpapers; and
WHEREAS, CEHE's rate application is the Company's first general rate case since about
2010; and
WHEREAS, CEHE proposed May 10, 2019, as the effective date for its requested
increase in rates; and
WHEREAS, it is not reasonably possible for the City to complete its review of CEHE's
filing by May 10, 2019; and
WHEREAS, the City will need an adequate amount of time to review and evaluate
CEHE's rate application to enable the City to adopt a final decision as a local regulatory
authority with regard to CEHE's requested rate increase.
WHEREAS, the City will require the assistance of specialized legal counsel and rate
experts to review the merits of CEHE's application to increase rates; and
WHEREAS, CEHE submitted a corresponding application with the Public Utility
Commission of Texas on the same date as it filed its application with the City; and
WHEREAS, the Public Utility Commission's decision could have a direct impact on the
City and its citizens who are customers of CEHE; and
WHEREAS, in order for the City's participation to be meaningful, it is important that the
City intervene in any such proceedings at the Public Utility Commission related to CEHE's
application to increase rates, including any appeals taken from the Commission's final order;
NOW THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN,
TEXAS:
Section 1: The findings set out in the preamble are in all things approved and
incorporated herein as if fully set forth.
Section 2: CEHE's proposed effective date for its proposed increase in rates is hereby
SUSPENDED for ninety (90) days beyond May 10, 2019.
Section 3: The statutory suspension period may be further extended if CEHE does
not provide proper public notice of its request to increase rates, if its rate -filing package is
materially deficient, or by agreement.
Section 4: The City shall continue to participate in a coalition of cities known as the
Texas Coast Utilities Coalition ("TCUC"), and authorizes intervention in proceedings related to
CEHE's Statement of Intent before the Public Utility Commission of Texas and related
proceedings in courts of law; and
Section 5: The City hereby orders CEHE to reimburse the City's rate case expenses
consistent with the Public Utility Regulatory Act and that CEHE shall do so on a monthly basis
and within thirty (30) days after submission of the City's invoices for the City's reasonable costs
associated with the City's activities related to this rate review or related to proceedings involving
CEHE before the City, the Public Utility Commission of Texas, or any court of law.
Section 6: Subject to the right to terminate employment at any time, the City retains
and authorizes the law firm of Herrera Law & Associates, PLLC, to act as Special Counsel with
regard to rate proceedings involving CEHE before the City, the Public Utility Commission of
Texas, or any court of law, and to retain such experts as may be reasonably necessary for review
of CEHE's rate application subject to approval by the steering committee of the TCUC.
Section 7: The City, in coordination with the Steering Committee, delegates to the
City Manager ands or the City Attorney, or designee of such office, review of the invoices of the
lawyers and rate experts for reasonableness before submitting the invoices to CEHE for
reimbursement.
Section 8: A copy of this resolution shall be sent to Mr. Alfred R. Herrera, Herrera
Law & Associates, PLLC, 816 Congress Ave., Suite 950, Austin, Texas 78701, and a courtesy
copy to CEHE's local representative.
Section 9: This resolution supersedes any prior inconsistent or conflicting resolution
or ordinance.
Section 10: This resolution shall take effect immediately from and after its passage by
the City Council of the City of Baytown.
INTRODUCED, READ and PASSED, by the affirmative vote of the City Council of the
City of Baytown this the 25`� day of April, 2019.
BRANDON CAPETILLO, Mayor
ATT T:
LE ICIA BRYSCH, City lerk
APPROVED AS TO FORM:
NACIO RAMIREZ, SR., C;it Attorney
RAKarenTiles--CityCounci1\Resoluuons1201 n1251Dkt49421-Resolution-Suspension-041119(2).doc