R2017-085 2017-04-24 RESOLUTION NO. 2017-85
A Resolution of the City Council of the City of Pearland, Texas,
denying the Distribution Cost Recovery Factor rate increase of
CenterPoint Energy Houston Electric, LLC made on or about April 6,
2017; authorizing participation in a coalition of similarly situated
cities; authorizing participation in related rate proceedings;
requiring the reimbursement of municipal rate case expenses;
authorizing the retention of special counsel; finding that the meeting
complies with the Open Meetings Act; making other findings and
provisions related to the subject; and declaring an effective date.
WHEREAS, on about April 6, 2017, CenterPoint Energy Houston Electric, LLC
("CenterPoint") filed an application for authority to implement a Distribution Cost
Recovery Factor with the City to increase rates effective September 1, 2017; and
WHEREAS, the City is a regulatory authority under the Public Utility Regulatory
Act ("PURA") and under Chapter 33, §33.001 et seq. of PURA has exclusive original
jurisdiction over CenterPoint's rates, operations, and services within the municipality;
and
WHEREAS, CenterPoint plans to increase its revenue requirement by about $44
million per year; and
WHEREAS, the jurisdictional deadline for the City to act in this rate matter is 60
days from the application date or June 5, 2017; and
WHEREAS, the City will require the assistance of specialized legal counsel and
rate experts to review the merits of CenterPoint's application to increase rates; and
WHEREAS, in order to maximize the efficient use of resources and expertise in
reviewing, analyzing and investigating CenterPoint's rate request it is prudent to
coordinate the City's efforts with a coalition of similarly situated municipalities; and
WHEREAS, the City, in matters regarding applications by CenterPoint to change
rates, has in the past joined with other local regulatory authorities to form the Texas
Coast Utilities Coalition ("TCUC") of cities and hereby continues its participation in
TCUC; and
WHEREAS, the City, joined with other local regulatory authorities and intervened
in proceedings regarding CenterPoint's DCRF application before the Public Utility
Commission of Texas in CenterPoint's DCRF application filed in 2016; and
RESOLUTION NO. 2017-85
WHEREAS, CenterPoint simultaneously filed its statement of intent to increase
rates with the Public Utility Commission of Texas, therefore the decision of the Public
Utility Commission of Texas could have an impact on the rates paid by the City and its
citizens who are customers in CenterPoint's service territory and in order for the City's
participation to be meaningful it is important that the City promptly intervene in such
proceeding at the Public Utility Commission of Texas: and
WHEREAS, CenterPoint failed to show that its proposed rate increase is
reasonable and therefore the City has concluded that CenterPoint's proposed rate
increase is unreasonable. Now, therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS:
Section 1. The findings set out in the preamble are in all things approved and
incorporated herein as if fully set forth.
Section 2. The City DENIES the rate increase CenterPoint filed on or about April 6,
2017.
Section 3. The City authorizes intervention in proceedings related to CenterPoint's
application for approval of a DCRF before the Public Utility Commission of Texas and
related proceedings in courts of law as part of the coalition of cities known as Texas
Coast Utilities Coalition ("TCUC").
Section 4. The City hereby orders CenterPoint to reimburse the City's rate case
expenses as provided in the Public Utility Regulatory Act and that CenterPoint shall do
so on a monthly basis and within 30 days after submission of the City's invoices for the
City's reasonable costs associated with the City's activities related to this rate review or
to related proceedings involving CenterPoint before the City, the Public Utility
Commission of Texas, or any court of law.
Section 5. Subject to the right to terminate employment at any time, the City retains
and authorizes the law firm of Herrera & Boyle, PLLC to act as Special Counsel with
regard to rate proceedings involving CenterPoint before the City, the Public Utility
Commission of Texas, or any court of law and to retain such experts as may be
reasonably necessary for review of CenterPoint's rate application subject to approval by
the City.
RESOLUTION NO. 2017-85
Section 6. The City shall review the invoices of the lawyers and rate experts for
reasonableness before submitting the invoices to CenterPoint for reimbursement.
Section 7. A copy of this resolution shall be sent to CenterPoint Energy, care of Mr.
Denise Gaw, CenterPoint Energy Service Company, LLC, 1111 Louisiana Street,
Houston, Texas 77002; and to Mr. Alfred R. Herrera, Herrera & Boyle, PLLC, 816
Congress Ave., Suite 1250, Austin, Texas 78701.
Section 8. The meeting at which this resolution was approved was in all things
conducted in strict compliance with the Texas Open Meetings Act, Texas Government
Code, Chapter 551.
Section 9. This resolution shall become effective from and after its passage.
PASSED, APPROVED and ADOPTED this the 24th day of April, A.D., 2017.
TOM REID
MAYOR
ATTEST:
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APPROVED AS TO FORM:
DARRIN M. COKER
CITY ATTORNEY
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