R2010-101 - 2010-07-26RESC�I�UTIQN NU. R20�0-101
A RESf3LU�IQN SY THE GITY OrF PEARLAN�, TEXAS, ("CITY")
RESPO�I�IN�G TO THE APPLI�ATION t7F �ENTERPCIINT
ENERGY H�USTQN' ELECTRIC, LLC (CENTE�POINT� F�OR
Al1THORITY TO CHANGE RATES AND A'�OPT C�RTAIN RATE
RIDEFtS; SUSPENDING CENTERPOINT'S PROPOSED
EFFECTIVE DATE; DETERMINING THAT T�iE MEETING
CC)MPLIED WITH T�i� TEXAS CJPEN MEIE�INGS A�T; N'IAK�NG
SUCH OTHER FINDINGS AND PROVISIONS RELATED TO THE
SUBJ'ECT; AND QECLARING AN EFFECTi IVE DA3E.
WHEREA�, on or about June 30, 2010, CenterPoint Energy Houstan Electric,
LLC {GenterPoi�nt) filed with the City Secrefiary an applicatian for authority to change
rates and to adopt ce�ta�n rate riders {"�he application"), and
WHEREAS, on or about June 3Q, 2410, CenterPaint afso f�led a simiVar if �ot
ide�tical application with the Public Utility Commission of Texas ("P�1CT" c�r
"Cort�mission'"), which has been dockete� as Docket Na. 38339; and
WHEREAS, CenterPc�int is requesting a�n increase in its retail transmission a�d
distributiqn rates of approximately $76 million, and w�ole�ale transmission rates of
a�out $18 million; and
WHEREAS, as pa�t of CenterPoint's application, Ce�terPodu�t also re�uests
approval of several rate riders, including the "Rider DCRF" {distribution cos� recovery
factdr}; and
WHEREAS, CenterPoint's re�uest fc�r ap�rov�l of its Rider DCRF and ather
riders raises several legal, policy, and substantive issues; and
WHEREAS, CenterPnint did not ide�tify in its appl�cati�n a specifac �artiposed
effective date far ifs proposed changes in rates; and
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WHEREAS, th� �arli�st eff�ctive date CenterPoint may propose under the Public
Utility Regulatary Act (PURA) is Aug�st 4, 2014, based ar� a fi6in� date of June 3fl,
2010; and
WHEREAS, an July 19, 201�}, CenterPoi�nt notified the Public Utili#y Gommissian
af T�xas that GenterPoin� ie�tended to propose an effective date a� August 6, 2{�1 C}; anc�
WHE�E,4S, the Ci#y has been partieipating as a rnember cf the Texas Goast
Utilities Coal�tic�n of Cities (TCUC), a coalition of similarly si#uated m�nic�palitaes; and
WHEREAS, the City has ben�fitted from its partici�atia� ir� t�e caalitian through
the sharing of costs and expertise; and
WHEREAS, given the complexity of determdning the reasonableness of
Cen#e�PainYs current and proposed rat�s ar�d proposed rate rid�rs, a d�t�rmination of
the reasonabler�ess af CenterPoint's appl�cation and its variaus prapo�ed changes en
rates cannot be made befio�e expiratian of August 6, 2010; and
'WHEREAS, given the complexity af determining the reasonableness of
CenterPoint's current ar�d pro�osed ra�es and prc�posed rate riders, the City requ�res
more time to caery o�at its duties as the local regulatory authority with exclusive original
jurisdiction within the City;
NOW THERE�ORE, BE IT RLSOLVEQ BY THE CITY CflUNCIL �F THE CITY aF
F'EARLAND, TEXAS THAT:
Section "�. That the state�rnents anc� fi�dings set out un th� preamble to t�is
resc�lutiot� are hereby in all ti�ing� approved and ac�a�ted.
Section 2. The City does her�by suspend the effective date of CenterPoint"s
proposed rate changes for a period af 90 days, which �esults in a suspension to
Nover�ber 4, 2010.
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Section 3. The meeting at which this resolution was approved was in all things
conducted an strict compliance with the Texas Open M�etings Act, Texas Governrr�ent
Code, Chapter 551.
Sectia� 4. �his resalution shall be effectiv� immediately upon pas5age.
PASSED, APPROVED and AD�PTED this 26 day ofi July, 2
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APPF�OVED A5 T�C7 FORM:
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DARRIN COKER
CITY ATTaRNEY
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ATTEST: