R-2015-062 2015-04-27 RESOLUTION NO. R2015-62
A Resolution of the City Council of the City of Pearland, Texas
("city") denying the distribution cost recovery factor rate
increase of CenterPoint Energy Houston Electric, LLC made
on or about April 6, 2015; authorizing participation in a
coalition of similarly situated cities; authorizing participation
in related rate proceedings; requiring the reimbursement of
municipal rate case expenses; authorizing the retention of
special counsel; finding that the meeting complies with the
open meetings act; making other findings and provisions
related to the subject; and declaring an effective date.
WHEREAS, CenterPoint Energy Houston Electric, LLC ("CenterPoint")
filed an application for authority to implement a Distribution Cost Recovery Factor
with the City to increase rates effective September 1, 2015; and
WHEREAS, the City is a regulatory authority under the Public Utility
Regulatory Act ("PURA") and under Chapter 33, §33.001 et seq. of PURA has
exclusive original jurisdiction over CenterPoint's rates, operations, and services
within the municipality; and
WHEREAS, CenterPoint plans to increase its revenue requirement by
$16.7 million per year; and
WHEREAS, the jurisdictional deadline for the City to act in this rate matter
is 60 days from the application date or June 5, 2015; and
WHEREAS, the City will require the assistance of specialized legal
counsel and rate experts to review the merits of CenterPoint's application to
increase rates; and
WHEREAS, in order to maximize the efficient use of resources and
expertise in reviewing, analyzing and investigating CenterPoint's rate request it is
prudent to coordinate the City's efforts with a coalition of similarly situated
municipalities; and
WHEREAS, the City, in matters regarding applications by CenterPoint to
change rates, has in the past joined with other local regulatory authorities to form
RESOLUTION NO. R2015-62
the Texas Coast Utilities Coalition ("TCUC") and hereby continues its
participation in TCUC; and
WHEREAS, CenterPoint simultaneously filed its statement of intent to
increase rates with the Public Utility Commission of Texas, therefore the decision
of the Public Utility Commission of Texas could have an impact on the rates paid
by the City and its citizens who are customers in CenterPoint's service territory
and in order for the City's participation to be meaningful it is important that the
City promptly intervene in such proceeding at the Public Utility Commission of
Texas; and
WHEREAS, CenterPoint failed to show that its proposed rate increase is
reasonable and therefore the City has concluded that CenterPoint's proposed
rate increase is unreasonable, now therefore
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PEARLAND,
TEXAS:
Section 1. The findings set out in the preamble are in all things
approved and incorporated herein as if fully set forth.
Section 2. The City DENIES the rate increase CenterPoint filed on or
about April 6, 2015.
Section 3. The City authorizes intervention in proceedings related to
CenterPoint's application for approval of a DCRF before the Public Utility
Commission of Texas and related proceedings in courts of law as part of the
coalition of cities known as Texas Coast Utilities Coalition ("TCUC").
Section 4. The City hereby orders CenterPoint to reimburse the City's
rate case expenses as provided in the Public Utility Regulatory Act and that
CenterPoint shall do so on a monthly basis and within 30 days after submission
of the City's invoices for the City's reasonable costs associated with the City's
activities related to this rate review or to related proceedings involving
CenterPoint before the City, the Public Utility Commission of Texas, or any court
of law.
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RESOLUTION NO. R2015-62
Section 5. Subject to the right to terminate employment at any time, the
City retains and authorizes the law firm of Herrera & Boyle, PLLC to act as
Special Counsel with regard to rate proceedings involving CenterPoint before the
City, the Public Utility Commission of Texas, or any court of law and to retain
such experts as may be reasonably necessary for review of CenterPoint's rate
application subject to approval by the City.
Section 6. The City shall review the invoices of the lawyers and rate
experts for reasonableness before submitting the invoices to CenterPoint for
reimbursement.
Section 7. A copy of this resolution shall be sent to CenterPoint Energy,
care of Denise Gaw, CenterPoint Energy Service Company, LLC, 111 Louisiana
Street, Houston, Texas 77002; and to Mr. Alfred R. Herrera, Herrera & Boyle,
PLLC, 816 Congress Ave., Suite 1250, Austin, Texas 78701.
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 become effective from and after its
passage.
PASSED, APPROVED and ADOPTED this the 27th day of
April, A.D., 2015.
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TOM REID
MAYOR
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AP OVED AS TO FORM:
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DARRIN M. COKER
CITY ATTORNEY
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