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CC Resolution No.2086 - CenterPointEnergyHoustonElectric RESOLUTION NO.2086 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BAYTOWN. TEXAS,RESPONDING TO THE APPLICATION OF CEN"I'ERPOINT ENERGY HOUSTON ELECTRIC,LLC,FOR AUTHORITY TO CHANGE RATES AND ADOPT CERTAIN RATE RIDERS;SUSPENDING CENTERPOINT'S PROPOSED EFFECTIVE DATE,MAKING SUCII OTHER FINDINGS AND PROVISIONS RELATED TO TI-IE SUBJECT;AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. WHEREAS,on or about June 30,2010,CenterPoint Energy Houston Electric.LLC (`CenterPoint")filed with the City Secretary an application for authority to change rates and to adopt certain rate riders(the"Application");and WHEREAS,on or about June 30,2010,CenterPoint also filed a similar if not identical Application with the Public Utility Commission of Texas("Commission"),which has been docketed as Docket No.38339:and WHEREAS,CenterPoint is requesting an increase in its retail transmission and distribution rates of approximately$76 million,and wholesale transmission rates of about$18 million:and WHEREAS,as part of CenterPoint's Application,CenterPoint also requests approval of several rate riders,including the"Rider DCRF"(distribution cost recovery factor);and WHEREAS.CenterPoint's request for approval of its Rider DCRF and other riders raises several legal,policy,and substantive issues:and WHEREAS,CenterPoint did not identify in its Application a specific proposed effective date for its proposed changes in rates,and WHEREAS.the earliest effective date CenterPoint may propose under the Public Utility Regulatory Act is August 4,2010.based on a filing date of June 30.2010:and WHEREAS.on July 19.2010.CenterPoint notified the Commission that CenterPoint intended to propose an effective date of August 6,2010:and WHEREAS,the City has been participating as a member of the Texas Coast Utilities Coalition of Cities,a coalition of similarly situated municipalities;and WHEREAS,the City has benefitted from its participation in the coalition through the sharing of costs and expertise,and WHEREAS,given the complexity of determining the reasonableness of CenterPoint's current and proposed rates and proposed rate riders.a determination of the reasonableness of CenterPoint's Application and its various proposed changes in rates cannot be made before expiration of August 6,2010;and WHEREAS,given the complexity of determining the reasonableness of CenterPoint's current and proposed rates and proposed rate riders,the City requires more time to carry out its duties as the local regulatory authority with exclusive original jurisdiction within the City;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 does hereby suspend the effective date of CenterPoint's proposed rate changes for a period of ninety(90)days from August 6,2010,which results in a suspension to November 4,2010. Section 3: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 of the City Council of the City of Baytown this the 12"day of August,2010. S.DONCARLOS,May r ATTE T:,OFg�r�` 'vw LETICIA G�*ItEylv APPROVED AS TO FORM: XLt I NACIO RAMIREZ,SR.,Cit homey R\Karen\Files\City 12WW&339Ce wW-RateCase-Rcsolulion 10 Suspend-072010.d,c 2