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<br />Tariff for Wholesale Transmission Service <br /> <br />The Tariff for Wholesale Transmission Service includes CenterPoint Houston's proposed <br /> <br />wholesale transmission rate and the terms under which wholesale transmission service will be <br /> <br />provided. The Company proposes changes to this tariff to ref1ect CenterPoint Houston's current <br /> <br />cost of providing this service. <br /> <br />The Company also proposes to change Rider RUWC - UCOS Wholesale Credit ("Rider <br /> <br />RUWC"), which is applicable to Distribution Service Providers assessed a transmission ~ervice <br /> <br />charge under rate schedule Wholesale Transmission Service - WTS. Rider RUWC remains in <br /> <br />effect until it has returned $19.2 million pursuant to the settlement agreement in Docket 32093. <br /> <br />It is anticipated that $19.2 million will be returned before the completion of this proceeding. <br /> <br />However, the Company has received insurance proceeds from Hurricane Ike associated with its <br /> <br />transmission system in the amount of $1.569 million. As such, the Company proposes renaming <br /> <br />Rider RUWC as Rider IPC - Insurance Proceeds Rider and for the tariff to be updated to ref1ect <br /> <br />the credit amount of $1.569 million to be returned over an anticipated three-year period or until <br /> <br />the funds are fully returned. <br /> <br />C. Effect of Proposed Change on Company's Revenues <br /> <br />The Application supports a net increase in retail transmission and distribution rates of <br /> <br />approximately $76 million over adjusted test year revenues, which is an increase of around 5%. <br /> <br />It also supports an approximately $18 million increase for wholesale transmission service, which <br /> <br />is an increase of around 7.5%. The proposed increase constitutes a "major change" as that term <br /> <br />is defined in PURA 9 36.101. <br /> <br />D. Advanced Metering System Surcharge and Reconciliation <br />Consistent with the Final Order in Docket No. 35639 and Substantive Rule 25.130, <br /> <br />CenterPoint Houston has included in this Application its reconciliation and adjustment to its <br />