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<br />e <br /> <br />e <br /> <br />REQUEST FOR CITY COUNCIL AGENDA ITEM <br /> <br />Agenda Date Requested: May 10, 2004 <br /> <br />ApproDriatioD <br /> <br />Requested By: <br /> <br />Susan Kelley <br /> <br />Source of Funds: <br /> <br />N/A <br /> <br />Department: Administration/Purchasing ,j~J.L., <br /> <br />Account Number: N/A <br /> <br />Report: <br /> <br />Resolution: X Ordinance: <br /> <br />Amount Budgeted: N/A <br />Amount Requested: N/A <br /> <br />Exhibits: Resolution <br /> <br />Budgeted Item: YES NO <br /> <br />Exhibits: Correspondence from City of Houston <br /> <br />Exhibits: <br /> <br />SUMMARY & RECOMMENDATION <br /> <br />The attached resolution authorizes the City of La Porte to participate in the Coalition of Cities in the <br />CenterPoint Energy 2004 True-Up of Stranded Costs proceeding at the Public Utility Commission of <br />Texas (PUC). Stranded costs are those costs incurred to increase or diversify a utility's power generation <br />capacity that are in excess of what the competitive market will pay - i.e. the difference between the book <br />value of the utility's generation plants and the market value of those assets. To the extent stranded costs <br />are positive, the T&D (CenterPoint Energy) will be permitted to adjust T&D rates to recover the stranded <br />costs. CenterPoint Energy submitted its true-up application to the PUC on March 31, 2004. If CenterPoint <br />is awarded stranded costs in the amount requested ($4.4 bi,lIion), the i!11pact to the average residential <br />customer's bill would amount to an estimated additional $12.92 per month. <br /> <br />The City of Houston organized the Coalition of Cities and will,fund outside counsel and consultants. and <br />will make all necessary filings for recovery of expenses. Municipalities in the CenterPoint's service area <br />are asked to join and be represented by the Coalition, adding weight to the arguments of the Coalition <br />before the PUC. <br /> <br />Staff Recommendation: <br />Staff recommends approval of resolution to participate with the Coalition of Cities. <br /> <br />Action Reauired by Council: <br />Approve resolution authorizing the City of La Porte to participate with the City of Houston and other <br />municipalities in the Coalition of Cities. <br /> <br />Approved for City Council Agenda <br /> <br />dD.JiJUJ,Mta-~ <br /> <br />Debra B. Feazelle, City Ma ger <br /> <br />It-4--0tf <br /> <br />Date <br />