R2024-123 2024-06-24RESOLUTION NO. R2024-123
A Resolution of the City Council of the City of Pearland, Texas,
(“CITY”) denying the application of the CenterPoint Energy Houston
Electric LLC for authority to increase rates submitted on or about
March 6, 2024; requiring the reimbursement of municipal rate case
expenses; 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 March 6, 2024, 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 $60 million, comprised of
an increase of about $17 million for its retail customers and about $43 million for its
wholesale transmission customers; 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, CEHE failed to establish that its overall revenue request resulted in
no more than an amount that will permit CEHE a reasonable opportunity to earn a
reasonable return on the utility’s invested capital used and useful in providing service to
the public in excess of the utility’s reasonable and necessary operating expenses; and
WHEREAS, CEHE failed to establish that its proposed rates were just and
reasonable; and
WHEREAS, the City has previously: (1) suspended CEHE’s proposed rate
increase by 90 days; (2) authorized intervention in proceedings related to CEHE’s
proposed rate increase as a member of the coalition of cities known as the Texas Coast
Utilities Coalition of cities; (3) directed CEHE to reimburse TCUC’s rate case expenses;
DocuSign Envelope ID: 44364158-FDEC-4181-81D6-BACEC4A9081C
RESOLUTION NO. R2024-123
and (4) retained the law firm of Herrera Law & Associates, PLLC with respect to rate
proceedings involving CEHE before the Public Utility Commission of Texas and courts of
law and to retain consultants to review CEHE’s rate application subject to TCUC’s
approval; now therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS:
Section 1. That the findings set out in the preamble are in all things approved and
incorporated herein as if fully set forth.
Section 2. That CEHE failed to show that its proposed rates are just and reasonable.
Section 3. That the City hereby DENIES CEHE’s request to increase rates and in
support of DENIAL finds that:
a)CEHE failed in its burden of proof to establish that its requested increase in
revenue or the changes set forth in its tariffs attached to CEHE’s Statement of
Intent to increase rates, results in just and reasonable rates;
b)CEHE 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 CEHE’s Statement of Intent to increase rates, result in just and reasonable
rates.
Section 4. That the City hereby orders CEHE to reimburse the City’s rate case
expenses as provided in the Public Utility Regulatory Act and that CEHE 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 CEHE before the City, the Public Utility Commission
of Texas, or any court of law.
Section 5. That a copy of this resolution shall be sent to Mr. Alfred R. Herrera,
Herrera Law & Associates, PLLC, P.O. Box 302799, Austin, Texas 78703, and a
courtesy copy to Ms. Denise Gaw, Regulatory Manager, CenterPoint Energy, 1111
Louisiana Street, Houston, Texas 77002.
Section 6. That 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.
DocuSign Envelope ID: 44364158-FDEC-4181-81D6-BACEC4A9081C
RESOLUTION NO. R2024-123
Section 7. That this resolution supersedes any prior inconsistent or conflicting
resolution or ordinance.
Section 8. That this resolution shall become effective from and after its passage.
PASSED, APPROVED and ADOPTED this the 24th day of June, A.D., 2024.
____________________________
J.KEVIN COLE
MAYOR
ATTEST:
________________________________
FRANCES AGUILAR, TRMC, MMC
CITY SECRETARY
APPROVED AS TO FORM:
________________________________
DARRIN M. COKER
CITY ATTORNEY
DocuSign Envelope ID: 44364158-FDEC-4181-81D6-BACEC4A9081C