HomeMy WebLinkAboutR2010-101 2010-07-26RESOLUTION NO. R2010-101
A RESOLUTION BY THE CITY OF PEARLAND, TEXAS, ("CITY")
RESPONDING TO THE APPLICATION OF CENTERPOINT
ENERGY HOUSTON ELECTRIC, LLC (CENTERPOINT) FOR
AUTHORITY TO CHANGE RATES AND ADOPT CERTAIN RATE
RIDERS; SUSPENDING CENTERPOINT'S PROPOSED
EFFECTIVE DATE; 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 30, 2010, CenterPoint Energy Houston Electric,
LLC (CenterPoint) filed with the City Secretary an application for authority to change
rates and to adopt certain rate riders ("the application"); and
WHEREAS, on or about June 30, 2010, CenterPoint also filed a similar if not
identical application with the Public Utility Commission of Texas ("PUCT" or
"Commission"), which has been docketed as Docket No. 38339; and
WHEREAS, CenterPoint is requesting an increase in its retail transmission and
distribution rates of approximately $76 million, and wholesale transmission rates of
about $18 million; and
WHEREAS, as part of CenterPoint's application, CenterPoint also requests
approval of several rate riders, including the "Rider DCRF" (distribution cost recovery
factor); and
WHEREAS, CenterPoint's request for approval of its Rider DCRF and other
riders raises several legal, policy, and substantive issues; and
WHEREAS, CenterPoint did not identify in its application a specific proposed
effective date for its 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: