R2023-288 2023-11-27 RESOLUTION NO. R2023-288
A Resolution of The City Council of the City of Pearland, Texas, (“CITY”)
denying the Statement of Intent to change rates filed on or about October
30, 2023 by CenterPoint Energy Resources Corporation, d/b/a, CenterPoint
Energy Entex and CenterPoint Energy Texas Gas; authorizing continued
participation in the Texas Coast Utilities Coalition of Cities; authorizing
intervention in proceedings related to CenterPoint’s Statement of Intent;
requiring the reimbursement of municipal rate case expenses; authorizing
representation of the City by Special Counsel; finding that the meeting
complies with the Open Meetings Act; making other findings and
provisions related to the subject.
WHEREAS, CenterPoint Energy Resources Corporation, D/B/A, CenterPoint Energy
Entex and CenterPoint Energy Texas Gas (“CenterPoint” or “Company”) filed a Statement of
Intent with the City on or about October 30, 2023, to change its rate schedules within the
corporate limits of this municipality, specifically to increase its system-wide, annual revenue
requirement by approximately $37.4 million; and
WHEREAS, the City is a regulatory authority under the Gas Utility Regulatory Act
(“GURA”) and under Chapter 104, §103.001 et seq. of GURA has exclusive original jurisdiction
over CenterPoint’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 CenterPoint’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 CenterPoint to change rates,
has in the past joined with other local regulatory authorities to form the Texas Coast Utilities
Coalition of Cities (TCUC), and hereby continues its participation in TCUC; and
WHEREAS, CenterPoint’s rate request consists of a voluminous amount of information
including CenterPoint’s rate-filing package, pre-filed direct testimony, exhibits, schedules, and
workpapers; and
WHEREAS, CenterPoint proposes to implement its proposed increase in rates on or
about December 4, 2023, and
WHEREAS, CenterPoint’s application fails to establish that its overall revenue request
resulted in no more than an amount that will permit CenterPoint a reasonable opportunity to
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RESOLUTION NO. R2023-288
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earn a reasonable return on the utility’s invested capital used and useful in providing service to
the public in excess of its reasonable and necessary operating expenses; and
WHEREAS, CenterPoint’s application fails to establish that its proposed rates are just
and reasonable; and
WHEREAS, CenterPoint may exercise its statutory right to appeal a City decision
regarding CenterPoint’s request to increase rates to the Railroad Commission of Texas; and
WHEREAS, CenterPoint filed its Statement of Intent to increase its revenue and change
its rate with the City and with the Railroad Commission of Texas on the same date, October 30,
2023, and it is important to intervene in the proceedings before the Railroad Commission of
Texas because the Railroad Commission’s decisions will impact rates within the City; 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. CenterPoint’s application fails to show that its proposed rates are just and
reasonable.
Section 3. The City hereby DENIES CenterPoint’s request to increase its revenue
and change its rates and in support of DENIAL finds that:
A. CenterPoint failed in its burden of proof to establish that its requested increase in
revenue or the changes set forth in its tariffs attached to CenterPoint’s Statement of
Intent to change rates, results in just and reasonable rates;
B. CenterPoint failed in its burden of proof to establish that adoption of its proposed rate
base, expenses, investment, return on equity, and other rate issues as presented in
CenterPoint’s Statement of Intent to increase rates, result in just and reasonable
rates.
Section 4. The City authorizes intervention in proceedings related to CenterPoint’s
Statement of Intent before the Railroad Commission of Texas and any related proceedings in
any courts of law.
Section 5. The City continues its participation with other cities in a coalition of cities
known as the Texas Coast Utilities Coalition of Cities (TCUC) with the understanding that the
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Steering Committee of TCUC is to provide direction and guidance to Special Counsel
representing said cities.
Section 6. The City hereby retains Herrera Law & Associates, PLLC as Special
Counsel to represent the City with regard to CenterPoint’s Statement of Intent and related
proceedings, including proceedings before local and state regulatory authorities and any court
of law and authorizes Special Counsel to employ such rate experts as may be necessary for
review and evaluation of CenterPoint’s Statement of Intent.
Section 7. The City, in coordination with the TCUC Steering Committee, shall review
the invoices of the lawyers and rate experts for reasonableness before submitting the invoices
to CenterPoint for reimbursement.
Section 8. The City hereby orders CenterPoint to reimburse the City’s rate case
expenses as provided in the Gas Utility Regulatory Act and that CenterPoint shall continue to 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 Railroad Commission of Texas, or any
court of law.
Section 9. A copy of this resolution shall be sent to Mr. Alfred R. Herrera, Herrera
Law & Associates, PLLC, 4400 Medical Parkway, Austin, Texas 78756, and a courtesy copy to
Mr. Patrick Peters, VP – Regulatory Legal, AGC, CenterPoint Energy, Inc., 1005 Congress
Ave., Suite 650, Austin Texas 78701.
Section 10. 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 11. This resolution supersedes any prior inconsistent or conflicting resolution
or ordinance.
Section 12. This resolution shall become effective from and after its passage.
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RESOLUTION NO. R2023-288
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PASSED, APPROVED and ADOPTED this the 27th day of November, A.D., 2023.
________________________________
J.KEVIN COLE
MAYOR
ATTEST:
________________________________
FRANCES AGUILAR, TRMC, MMC
CITY SECRETARY
APPROVED AS TO FORM:
________________________________
DARRIN M. COKER
CITY ATTORNEY
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