CC Resolution No. 1973 - OverRecovery by CenterPoint RESOLUTION NO.1973
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BAYTOWN,
TEXAS,AUTHORIZING THE CITY TO PARTICIPATE IN THE
PROCEEDING TO PREVENT OVER-RECOVERY BY CENTERPOINT
ENERGY IN ITS EFFORTS TO RECOVER COSTS ASSOCIATED WITH
HURRICANE IKE;AUTHORIZING THE CITY TO PARTICIPATE IN A
COALTION OF CITIES KNOWN AS THE TEXAS COAST UTILITIES
COALITION(`'TCUC");AUTHORIZING THE HIRING OF COUNSEL AND
EXPERTS THROUGH TCUC;REQUIRING THE REIMBURSEMENT OF
COSTS;MAKING SUCH OTHER FINDINGS AND PROVISIONS RELATED
THERETO;AND PROVIDING FOR THE EFFECTIVE DATE THEREOF.
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WHEREAS,CenterPoint Energy('`CenterPoint')plans to file with the Public Utility
Commission of Texas("PUC'')a request for$700 million for recovery of costs associated with
Hurricane Ike on or about April 1,2009:and
WHEREAS,if CenterPoint's request for hurricane recovery costs is granted,the
ratepayers in the cities in CenterPoint's service territory will be charged a monthly surcharge for
a lengthy duration to allow CenterPoint to recoup these costs;and
WHEREAS,in order to efficiently,meaningfully and comprehensively review
CenterPoint's request,it is advantageous for the City to join with other similarly affected cities in
a coalition of cities to prevent over-recovery by CenterPoint Energy;and
WHEREAS,this proceeding will require the specialized knowledge of experts who
understand hurricane cost recovery efforts and the impact upon ratepayers;and
WHEREAS,typically coalitions of cities,in response to cost recovery requests of this
type and magnitude,provide direction to rate experts and utility lawyers;NOW THEREFORE.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN,
TEXAS:
Section 1:That the statements and findings set out in the preamble to this resolution
are hereby in all things approved and adopted.
Section 2:The City is authorized to participate with the Texas Coast Utilities
Coalition("TCUC")in the aforementioned proceeding to be initiated by CenterPoint and any
other proceeding related to CenterPoint's request,including appeals or other actions in the state
courts of Texas and take such actions as are recommended by the Steering Conunittee of TCUC,
including the selection of counsel or experts to work on behalf of TCUC.
Section 3:The City retains its right to withdraw from TCUC at any time without any
financial obligation to the remaining coalition members or to the experts or lawyers hired by the
coalition.
Section 4:CenterPoint is ordered to pay the City's reasonable expenses incurred in
this Hurricane Ike cost recovery proceeding in a timely manner.
Section 5: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 261h day of March.2009.
BRANDON CAPETILLO,Mayor Pro Tern
A ST:
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(NNwti'Y
KAnHIE DARNELL,City Clerk Z3 I
APPROVED AS TO FORM:
1f ACIO RAMIREZ.SR.,Cit ttorney
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