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CC Resolution No. 1922 - Rate & Tariff Changes Centerpoint RESOLUTION NO.1922 v L 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. /J 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 S KN,Interim City erk APPROVED AS TO FORM: c7M6 ACIO RAMIREZ,SR.,E!!�Attomcy R-\K-Tiles\City Council\Resolud.-ffl8\,%1-h 31�5uspcndGazaa\csFJoinTe�azCoaslUlilityCoali�ian.doe