R2019-113 2019-05-13 RESOLUTION NO. R2019-113
A Resolution of the City Council of the City of Pearland, Texas,
("City") suspending the effective date for ninety days in connection
with the rate increase filing made on or about April 5, 2019 by
Centerpoint Energy Houston Electric LLC; authorizing the City's
continued participation in a coalition of cities known as the "Texas
Coast Utilities Coalition;" authorizing participation in proceedings at
the Public Utility Commission of Texas; authorizing the hiring of
attorneys and consultants; requiring reimbursement of reasonable
legal and consultant expenses; requiring proof of notice; 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, CenterPoint Energy Houston Electric ("CEHE" or "Company") filed a
Statement of Intent with the City on or about April 5, 2019, to change its rates within the
corporate limits of this municipality, specifically to increase its annual revenue for its
retail transmission and distribution services by approximately $154 million, which
equates to an increase of approximately 7.4 percent, and by about $6.8 million for its
wholesale transmission service, which equates to an increase of approximately 1.8
percent; 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 CEHE's rates, operations, and services within the municipality; and
WHEREAS, in order to maximize the efficient use of resources and expertise in
reviewing, analyzing and investigating CEHE's rate request and its changes in tariffs 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 CEHE to change rates,
has in the past joined with other local regulatory authorities to form an alliance of cities
known as Texas Coast Utilities Coalition ("TCUC"), and hereby continues its participation
in TCUC; and
WHEREAS, in CEHE's prior general rate case submitted in June, 2010, in
Docket No. 38339 before the Public Utility Commission of Texas ("PUCT"), CEHE
RESOLUTION NO. R2019-113
requested an increase of about $110 million and the PUCT approved an increase of
about $15 million in large part due to the City's participation in TCUC and coordination
with other cities and their review of CEHE's application; and
WHEREAS, CEHE's rate request consists of a voluminous amount of information
including CEHE's rate-filing package, exhibits, schedules, and workpapers; and
WHEREAS, CEHE's rate application is the Company's first general rate case
since about 2010; and
WHEREAS, CEHE proposed May 10, 2019, as the effective date for its
requested increase in rates; and
WHEREAS, it is not reasonably possible for the City to complete its review of
CEHE's filing by May 10, 2019; and
WHEREAS, the City will need an adequate amount of time to review and
evaluate CEHE's rate application to enable the City to adopt a final decision as a local
regulatory authority with regard to CEHE's requested rate increase.
WHEREAS, the City will require the assistance of specialized legal counsel and
rate experts to review the merits of CEHE's application to increase rates; and
WHEREAS, CEHE submitted a corresponding application with the Public Utility
Commission of Texas on the same date as it filed its application with the City and the
Public Utility Commission's decision could have a direct impact on the City and its
citizens who are customers of CEHE and in order for the City's participation to be
meaningful it is important that the City intervene in any such proceedings at the Public
Utility Commission related to CEHE's application to increase rates, including any
appeals taken from the Commission's final order; 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. CEHE's proposed effective date for its proposed increase in rates
is hereby SUSPENDED for ninety days beyond May 10, 2019.
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RESOLUTION NO. R2019-113
Section 3. The statutory suspension period may be further extended if CEHE
does not provide proper public notice of its request to increase rates, if its rate-filing
package is materially deficient, or by agreement.
Section 4. The City shall continue to participate in a coalition of cities known
as the Texas Coast Utilities Coalition ("TCUC"), and authorizes intervention in
proceedings related to CEHE's Statement of Intent before the Public Utility Commission
of Texas and related proceedings in courts of law; and
Section 5. The City hereby orders CEHE to reimburse the City's rate case
expenses consistent with the Public Utility Regulatory Act and that CEHE 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 related
to proceedings involving CEHE before the City, the Public Utility Commission of Texas,
or any court of law.
Section 6. Subject to the right to terminate employment at any time, the City
retains and authorizes the law firm of Herrera Law & Associates, PLLC to act as Special
Counsel with regard to rate proceedings involving CEHE 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 CEHE's rate application subject to approval by the
steering committee of the TCUC.
Section 7. The City, in coordination with the Steering Committee, delegates
to the City Manager and/or the City Attorney, or designee of such office, review of the
invoices of the lawyers and rate experts for reasonableness before submitting the
invoices to CEHE for reimbursement.
Section 8. A copy of this resolution shall be sent to Mr. Alfred R. Herrera,
Herrera Law & Associates, PLLC, 816 Congress Ave., Suite 950, Austin, Texas 78701,
and a courtesy copy to CEHE's local representative.
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RESOLUTION NO. R2019-113
Section 9. 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 10. This resolution supersedes any prior inconsistent or conflicting
resolution or ordinance.
Section 11. This resolution shall become effective from and after its passage.
PASSED, APPROVED and ADOPTED this the 13th day of May, A.D., 2019.
4up ��, TOM REID
_,, �' IS
MAYOR
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ATTEST:
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MARIA RODRIGUEZ
DEPUTY CITY SECRETARY
APPROVED AS TO FORM:
•
•
DARRIN M. COKER
CITY ATTORNEY
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