R2009-122 - 2009-07-27RESOLUTION NO. R2009-122
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PEARLAND, TEXAS, AUTHORIZING THE SUSPENSION OF THE
EFFECTIVE DATE OF THE RATES, SCHEDULES AND TARIFFS OF
CENTERPOINT ENERGY ENTEX ("CENTERPOINT GAS") FOR
NINETY DAYS WITH REGARD TO THE FILING BY CENTERPOINT
GAS WITH THE CITY ON MAY 1, 2009; REQUIRING CENTERPOINT
TO REIMBURSE REASONABLE RATE CASE EXPENSES;
AUTHORIZING A CITY REPRESENTATIVE TO JOIN A COALITION OF
CITIES TO DIRECT EXPERTS AND SPECIAL COUNSEL TO ACT ON
THE CITY'S BEHALF; AUTHORIZING THE RETENTION OF SPECIAL
COUNSEL AND RATE CONSULTANT FIRMS; FINDING THAT THE
MEETING COMPLIES WITH THE OPEN MEETINGS ACT; MAKING
SUCH OTHER FINDINGS AND PROVISIONS RELATED TO THE
SUBJECT; AND DECLARING AN EFFECTIVE DATE FOR THE
RESOLUTION.
WHEREAS, on or about May 1, 2009, CenterPoint Energy Entex filed a request
to increase gas rates for the Texas Coast Division by approximately $2 million through
changes in rate schedules. The filing was entitled "Cost of Service Adjustment". The
changed rate schedules were made with the City for in-city customers and at the
Railroad Commission of Texas for customers located outside municipal boundaries; and
WHEREAS, the City has participated as a member of the Texas Coast Utilities
Coalition ("TCUC"), a coalition of cities located in the service territory of the Texas
Coast Division of CenterPoint Gas ;and
WHEREAS, in order to efficiently, meaningfully and comprehensively review the
changed rate schedules filed by CenterPoint Gas it is advantageous for the City to
continue to participate as a member of the Texas Coast Utilities Coalition; and
WHEREAS, given the knowledge and experience of the rate consultants and
special counsel employed by the Texas Coast Utilities Coalition cities in reviewing the
books and records of CenterPoint Gas in the last general rate case, Docket No. 9791, it
RESOLUTION NO. R2009-122
is advantageous for the City as a member of Texas Coast Utilities Coalition to continue
to retain such firms; and
WHEREAS, CenterPoint Gas designated August 1, 2009 as the effective date for
the rate increases reflected in its rate schedules; and
WHEREAS, TCUC, through its consultants, has been examining the books and
records of CenterPoint Gas, but at this point it appears that its review will not be
completed by August 1, 2009 ;and
WHEREAS, under Texas law, the City has the right to suspend the effective date
for up to ninety days; 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 adopted.
Section 2. The effective date for the changes in rate schedules is suspended
for ninety days. The last day of the suspension period would be October 30, 2009, but
the City may issue a decision in this matter prior to the expiration of the suspension
period.
Section 3. The City, as a member of .the Texas Coast Utilities Coalition,
continues its retention of Diversified Utilities Consultants, Inc. and the law firm of
Herrera & Boyle, PLLC, to act on its behalf with regard to matters related to the
requested change in rate schedules by CenterPoint Gas; and
Section 4. The City will act as a member of the coalition of cities known as the
Texas Coast Utilities Coalition in reviewing the appropriateness of the changes in rate
schedules proposed by CenterPoint Gas. The City Manager and City Attorney or their
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RESOLUTION NO. R2009-122
designates will act as the City's representatives with regard to directing the activities of
APPROVED AS TO FORM:
the Texas Coast Utilities Coalition.
Section 5. The City orders CenterPoint Gas to reimburse the cost of its
reasonable rate case expenses. The City will have no obligation for payment of any rate
case expenses that are not reasonable.
Section 6. The City retains its right to withdraw from the coalition of cities at
any time without any financial obligation to the remaining coalition members or to the
experts or lawyers hired by the coalition or its members.
Section 7. 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 8. This resolution shall be effective immediately upon passage.
PASSED, APPROVED and ADOPTED this the 27th day of July, A.D.,
2009.
TOM REID
MAYOR
ATTEST:
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DARRIN M. COKER
CITY ATTORNEY
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