R2009-045 - 2009-03-30RESOLUTION NO. 2009-45
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PEARLAND,
TEXAS, AUTHORIZING THE CITY TO PARTICIPATE IN A PROCEEDING AT
THE PUBLIC UTILITY COMMISSION OF TEXAS IN ORDER TO PREVENT
THE POSSIBLE OVER-RECOVERY OF COSTS REQUESTED BY
CENTERPOINT ENERGY WHICH THE COMPANY CLAIMS ARE RELATED
TO THE RESTORATION OF SERVICE FOLLOWING HURRICANE IKE;
AUTHORIZING THE CITY TO PARTICIPATE IN A COALTION OF CITIES
KNOWN AS THE TEXAS COAST UTILITIES COALITION ("TCUC");
AUTHORIZING THE HIRING OF COUNSEL AND EXPERTS THROUGH TCUC;
REQUIRING THE REIMBURSEMENT OF COSTS; DETERMINING THAT THE
MEETING COMPLIED WITH THE TEXAS OPEN MEETINGS ACT; MAKING
SUCH OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT;
AND DECLARING AN EFFECTIVE DATE.
WHEREAS, CenterPoint Energy ("CenterPoint") plans to file with the Public
Utility Commission of Texas ("PUC") a request for $700 million for recovery of
costs associated with Hurricane Ike on or about April 1, 2009; and
WHEREAS, if CenterPoint's request for hurricane recovery costs is granted, the
ratepayers in the cities in CenterPoint's service territory will be charged a
monthly surcharge for a lengthy duration to allow CenterPoint to recoup these
costs; and
WHEREAS, in order to efficiently, meaningfully and comprehensively review
CenterPoint's request, it is advantageous for the City to join with other similarly
affected cities in a coalition of cities to prevent the possibility of an over-recovery
of costs requested by CenterPoint Energy; and
WHEREAS, this proceeding will require the specialized knowledge of experts
who understand hurricane cost recovery efforts and the impact upon ratepayers;
and
WHEREAS, typically coalitions of cities, in response to cost recovery requests of
this type and magnitude, provide direction to rate experts and utility lawyers.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF PEARLAND, TEXAS THAT:
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 is authorized to participate with the Texas Coast
Utilities Coalition ("TCUC") in the aforementioned proceeding to be initiated by
CenterPoint and any other proceeding related to CenterPoint's request including
appeals or other actions in the state courts of Texas and take such actions as are
recommended by the Steering Committee of TCUC, including the selection of
counsel or experts to work on behalf of TCUC.
Section 3. 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 of lawyers hired by the coalition.
Section 4. CenterPoint is ordered to pay the City's reasonable
expenses incurred in this Hurricane Ike cost recovery proceeding in a timely
manner.
Section 5. 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 6. This resolution shall be effective immediately upon passage.
PASSED AND APPROVED this 30th day of March, 2009.
Mayor
Tom Reid
ATTEST:
City ecreta
Yo g Lorfi