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CC Resolution No. 2081 - CenterPointRateCaseResToIntervene RESOLUTION NO.2081 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BAYTOWN. TEXAS,RESPONDING TO THE APPLICATION OF CENTERPOINT ENERGY HOUSTON ELECTRIC.LLC(CENTERPOIN'1')FOR AUTHORITY TO CI-IANGE RATES AND ADOPT CERTAIN RATE RIDERS: AUTHORIZING THE CITY TO PARTICIPATE IN A COALITION OF CITIES KNOWN AS TEXAS COAST UTILITIES COALITION OF CITIES(TCUC); AUTI-IORIZING THE CITY'S INTERVENTION IN PUC DOCKET NO.38339 AND ANY RELATED PROCEEDINGS AS PART OF TCUC;AUTHORIZING THE I-IIRING OF COUNSEL AND EXPERTS TIIROUGH TCUC; REQUIRING THE REIMBURSEMENT OF COSTS;AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. WHEREAS,on or about June 30,2010,CenterPoint Energy 1-louston Electric,LLC (CenterPoint)filed with the Citv Secretary an application for authority to change rates and to adopt certain rate riders("the application");and WIIEREAS,simultaneously with the filing of the application with the City Secretary. CenterPoint filed a similar if not identical application with the Public Utility Commission of Texas("PUCT"or"Commission")which has been docketed as Docket No.38339;and Wl-IEREAS.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 WI-IEREAS,as part of CenterPoint's application,CenterPoint also requests approval of several rate riders.including the"Rider DCRF"(distribution cost recovery factor);and WIIEREAS,CenterPoint's request for approval of its Rider DCRF and other riders raises several legal,policy.and substantive issues:and WHEREAS,the City has been participating as a member of the Texas Coast Utilities Coalition of Cities(TCUC).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 WI-IEREAS,given the complexity in determining the reasonableness of"CenterPoint's current and proposed rates and proposed rate riders,it is necessary to participate with TCUC in order to hire special counsel and experts for the purpose of assisting the City in its role as a regulatory authority under the Public Utility Regulatory Act("PURA");and WIIEREAS.because the application filed by CenterPoint with the City and at the Commission is a request for a change in rates.the City is entitled to have its reasonable rate case expenses reimbursed by the electric utility in ratemaking proceedings:NOW THEREFORE. BE IT RESOLVED 13Y 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 authorizes the law firm of Hen-era&Boyle,I'LLC to file an intervention in Docket No.38339 and related proceedings at the Commission on behalf of the City as a member of the Texas Coast Utilities Coalition of Cities(TCUC). Section 3:The City is authorized to participate as a member of TCUC and to retain the law firm of Herrera&Boyle.PLLC to represent its interests related to CenterPoint's application and to retain such experts as are appropriate for such a proceeding. Section 4: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 after its withdrawal. Section 5:CenterPolnt is ordered to pay the City's reasonable rate case expenses incurred in response to CenterPoint's application in a timely manner. Section 6: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 81"day of July,2010. S VEPHEN H.DONCARLOS.Ma or ATT1,S C/1 i LETICI-t Clerk APPROVED AS TO FROM: 4041�eop� CiWNACIO RAMIREZ.SR..City A orney R:\Karen\files\City Council\Resolutions\20IWuly 8ML-08339-CenterPoint Rate Case-Resolution to Intervene-070210.doc 2