R2009-110 - 2009-07-13RESOLUTION NO. R2009-110
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PEARLAND, TEXAS, RESPONDING TO THE APPLICATION OF
CENTERPOINT ENERGY HOUSTON ELECTRIC, LLC TO REVISE
CERTAIN DISCRETIONARY CHARGES; SUSPENDING THE
EFFECTIVE DATE FOR ANOTHER NINETY DAYS; AUTHORIZING THE
SETTING OF INTERIM RATES; AUTHORIZING THE CITY TO
PARTICIPATE IN A COALITION OF CITIES KNOWN AS THE TEXAS
COAST UTILITIES COALITION ("TCUC"); AUTHORIZING THE HIRING
OF COUNSEL AND EXPERTS THROUGH TCUC; REQUIRING THE
REIMBURSEMENT OF COSTS; AUTHORIZING THE CITY'S
INTERVENTION AS PART OF TCUC AT THE PUBLIC UTILITY
COMMISSION OF TEXAS IN DOCKET NO. 37105; 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, on or about June 12, 2009 CenterPoint Energy Houston Electric,
LLC. ("CEHE" or "CenterPoint"), filed with the City Secretary an application to reduce
several service charges, like the charges for move-in, disconnection and reconnection;
and
WHEREAS, simultaneously with the filing of the application with the City
Secretary, to reduce several discretionary service charges CenterPoint filed the
identical application with the Public Utility Commission of Texas ("PUCT" or
"Commission") which has been docketed as Docket No. 37105, and
WHEREAS, the changes in the pricing of service charges came about as a result
of an order issued by the Commission in Docket No. 35639 with regard to the
implementation of Advanced Meter Service ("AMS"); and
WHEREAS, CenterPoint has requested an implementation date ("effective date")
of August 1, 2009 for its changes in discretionary service charges; and
WHEREAS, it is quite likely that there will not be a final order at the Commission
until after the August 1, 2009 effective date; and
RESOLUTION NO. R2009-110
WHEREAS, it is important for administrative efficiency purposes that the rates for
service charges be the same throughout CenterPoint's service territory; and
WHEREAS, the City has been participating as a member of the Texas Coast
Utilities Coalition ("TCUC"), a coalition of similarly situated municipalities; and
WHEREAS, the City has benefitted from its participation in the coalition through
the sharing of costs and expertise; and
WHEREAS, in order to get the benefit of reduced discretionary service charges
as soon as possible it is necessary to put the rates requested by CenterPoint in its
application on August 1, 2009 into effect on an interim basis until a final order is issued
by the Commission in Docket No. 37105; and
WHEREAS, given the complexity in calculating the service charges it is
necessary to participate with TCUC in order to hire special counsel and an expert for
the purpose of assisting the City in its role as a regulatory authority under the Public
Utility Regulatory Act ("PURR"); and
WHEREAS, the application filed by CenterPoint with the City and at the
Commission is a request for a change in rates. The City is entitled to have its
reasonable rate case expenses reimbursed by the electric utility in ratemaking
proceedings of this sort; now therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS:
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 suspends the effective date of August 1, 2009 for an
additional 90 days pursuant to the authority granted the City under Section 36.108 of
the Public Utility Regulatory Act. The City finds that the effective date needs to be
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RESOLUTION NO. R2009-110
suspended in order to be able to synchronize the rates or charges which are under
consideration in Docket No. 37105 before the Public Utility Commission of Texas. The
City, further finds, that the additional time is needed in order to properly determine the
reasonableness of such charges.
Section 3. The City sets as interim rates the rates set forth in the application
and tariffs filed with the City Secretary on or about June 12, 2009. The interim rates
shall go into effect on August 1, 2009 and remain in effect until the adoption of a final
decision by the Council with rates or charges which are different then the interim rates
or charges adopted herein. If the Council does not change the interim rates or charges
by October 1, 2009, then, the interim rates shall become the final rates.
Section 4. The City authorizes the law firm of Herrera & Boyle, PLLC to file an
intervention in Docket No. 37105 at the Commission on behalf of the City as a member
of the Texas Coast Utilities Coalition.
Section 5. The City is authorized to participate as a member of TCUC and to
hire the law firm of Herrera & Boyle, PLLC to represent its interests as a regulatory
authority with regard to CenterPoint's application and to retain such experts as are
appropriate for such a proceeding.
Section 6. 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 or lawyers
hired by the coalition.
Section 7. CenterPoint is ordered to pay the City's reasonable rate case
expenses incurred in response to CenterPoint's application in a timely manner.
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RESOLUTION NO. R2009-110
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 be effective immediately upon passage.
PASSED, APPROVED and ADOPTED this the 13th day of July, A.D., 2009.
OM REID
MAYOR
ATTEST:
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APPROVED AS TO FORM:
DARRIN M. COKER
CITY ATTORNEY
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