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<br />e <br /> <br />e <br /> <br /> <br />CITY OF HOUSTON <br /> <br />Finance and Administration <br />Department <br /> <br />Bill White <br />Mayor <br /> <br />Jud Gra Johnson <br />. Director <br />Finance and Administration <br />Department <br />P.O. Box 1562 <br />Houston, Texas 77251-1562 <br /> <br />April 27, 2004 <br /> <br />T.713.837.9630 <br />F.713.837.0631 <br />www.cityofhouston.gov <br /> <br />Wayne Roesler <br />CenterPoint Energy <br />Regulatory Operations <br />P.o. Box 4567 <br />Houston, Texas 77210-4567 <br /> <br />Re: Potential Impact of Center Point Energy's True-Up Case on Residential Customers <br /> <br />Dear Mr. Roesler, <br /> <br />This is in r~sponse to your letter dated April 16, 2004, regarding the calculation of the increase in residential <br />rates as a result of the pending true-up. <br /> <br />In reading your letter, it appears you misunderstood the statement about the increase in rates. The letter states, <br /> <br />"If Center Point is awarded stranded costs in the amount requested ($4.4 <br />billion), the impact to the average residential customer's bill will amount to <br />an estimated additional $12.92 per month. " <br /> <br />Our calculations indicate that the requested $4.4 billion true-up amount would result in an increase to an <br />average residential customer of between 12% and 13%. The 43% you are referring to appears in the following <br />sentence, <br /> <br />"The cumulative rate impact since the onset of deregulation is a staggering <br />43% increase in residential electric rates. .. <br /> <br />It is evident that the 43% is our calculation of the total increase in residential electric rates since the onset of <br />deregulation, including fuel factor increases, and is not intended to be understood as the projected increase in <br />rates that will result solely from the true-up, but instead represents the cumulative effect of the increases that <br />have taken place since deregulation, including the true-up. We realize CenterPoint is not an REP and does not <br />sell electricity to retail end-users. <br /> <br />Please feel free to call me if you have any other questions. <br /> <br />Sincerely, _, () . <br /> <br />~~A___ [{~ <br />Tina aez, Assistant Director <br />City of Houston <br />Finance & Administration Department <br /> <br />cc: Houston Coalition of Cities <br /> <br />Council Members: Toni Lawrence Carol Mims Galloway Mark Goldberg Ada Edwards Addie Wiseman M.J. Kahn Pam Holm Adrian Garcia Carol Alvarado <br />Mark Ellis Gordon Quan Shelley Sekula-Gibbs, M.D. Ronald C. Green Michael Berry Controller: Annise D. Parker <br />