CC Resolution No. 1922 - Rate & Tariff Changes Centerpoint RESOLUTION NO.1922
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A RESOLUTION OF THE CITY COUNCIL OF THE CiTY OF BAYTOWN,TEXAS.
SUSPENDING THE EFFECTIVE DATE OF THE REQUESTED RATE AND TARIFF
CHANGES OF CENTERPOINT ENERGY RESOURCES CORP.,D/B/A
CENTERPOINT ENERGY ENTEX AND CENTERPOINT ENERGY TEXAS GAS
("CENTERPOINT")TO PERMIT THE CITY TiME TO STUDY THE REQUEST AND
TO ESTABLISH REASONABLE RATES;AUTHORIZING THE CITY TO JOIN THE
TEXAS COAST UTILITY COALITION.WHICH SHALL DIRECT EXPERTS AND
SPECIAL COUNSEL TO ACT ON THE CITY'S BEHALF.NEGOTIATE WITH
CENTERPOINT AND DIRECT ANY NECESSARY LITIGATION AND APPEALS;
REQUIRING REIMBURSEMENT OF CITIES'RATE CASE EXPENSES;AND
PROVIDING FOR AN EFFECTIVE DATE THEREOF.
WHEREAS,on or about March 6,2008,CenterPoint Energy Resources Corp..d/b/a CenterPoint
Energy Entex and CenterPoint Energy Texas Gas("CenterPoint"or"Company"),pursuant to Gas Utility
Regulatory Act§104.102 tiled with the City of Baytown a Statement of Intent to change gas rates in all
municipalities exercising original jurisdiction within its Texas Coast Division service area effective April
10,2008;and
WHEREAS,the gas utility rates for CenterPoint Energy Entex have not been reviewed for over
thirty(30)years;and
WHEREAS,over the last thirty years there have been material changes in the corporate structure
of CenterPoint:and
WHEREAS.CenterPoint is seeking to significantly increase the cost of non-gas costs(base rates)
for residential customers;and
WHEREAS,the Gas Utility Regulatory Act§104.107 grants local regulatory authorities the right
to suspend the effective date of proposed rate changes for ninety(90)days:and
WHEREAS,in order to efficiently,meaningfully and comprehensively review the rate tiling by
CenterPoint,it is advantageous for the City to join with other similarly affected cities in a coalition of
cities;and
WHEREAS,the Gas Utility Regulatory Act§103.022 provides that reasonable costs incurred by
cities in ratemaking activities are to be reimbursed by the regulated utility:and
WHEREAS.on or about March 6,2008 simultaneous with the filing with the City,CenterPoint
filed a Statement of Intent to change gas rates for the Texas Coast environs with the Railroad Commission
of Texas referred to as Gas Utility Docket("GUD")No.9791;NOW THEREFORE,
BE IT RESOLVED 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 adopted.
Section 2:That the effective date of the rate request submitted by CenterPoint on or about
March 6,2008,are hereby suspended for the maximum period allowed by law to permit adequate time to
review the proposed changes and to establish reasonable rates.
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Section 3:That the City Manager is hereby authorized and directed to join the Texas Coast
Utility Coalition,a coalition of cities in the Texas Coast Division service area,to hire and direct legal
counsel and consultants,negotiate with the Company,make recommendations to the City regarding
reasonable rates and to direct any necessary administrative proceedings or court litigation associated with
an appeal of a rate ordinance and the rate case filed with the City or Railroad Commission.
Section 4:That the City is authorized to intervene and participate in GUD No.9791,
Statement of Intent of CenterPoint Energy Resources Corp.,d/h/a CenterPoint Energy Entex and
CenterPoint Energy Texas Gas to Increase Rates in the Unincorporated Areas of CenterPoint's Texas
Coast Division,in order to protect the interests of the City.
Section 5:That the selection of the law firm of Herrera&Boyle,PLLC,to represent the
Texas Coast Utility Coalition and its members,including the City,in this matter is hereby authorized and
ratified.
Section 6:That the City's reasonable rate case expenses shall be reimbursed by CenterPoint.
Section 7: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 City Council of the City of
Ba own this the 271M1 day of March,2008.
•,�;O BAYTO��
'm S P.DONCARLOS,Mayor
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KN,Interim City erk
APPROVED AS TO FORM:
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