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REQUEST FOR CITY COUNCIL AGENDA ITEM <br />Appropriation <br />Agenda Date Requested: May 10, 2019 <br />Requested By: Source of Funds: <br />Corby Alexander, City Manager <br />Department: <br /> Administration -CMO <br />AccountNumber: <br />Amount Budgeted: <br />Report Resolution Ordinance <br /> <br /> <br />Amount Requested: <br />Exhibits: Letter from Houston, Highlights Document, <br />Budgeted Item: YesNo <br />Analysis of Rates and Ordinance <br /> <br /> <br />SUMMARY & RECOMMENDATION <br /> <br />On April 5, 2019 CenterPoint Energy Houston Electric, LLC (“CenterPoint’) submitted <br />a Statement of Intent and Application for Authority to Change Rates (“Application”) <br />within the City of La Porte requesting a rate increase, riders, and tariff changes. The <br />Application was filed with each municipality exercising original jurisdiction over <br />CenterPoint’s electric rates. CenterPoint is requesting a $193.4 million rate increase of <br />which $186.6 million will be collected from retail customers. In addition, CenterPoint is <br />proposing through a separate Tax Cut and Jobs Act (TCJA) Rider, to return <br />approximately $97 million to customers over a three-year period. After the three-year <br />period, the TCJA Rider expires. <br /> <br />The City of La Porte, as a local regulatory authority, exercises original jurisdiction over <br />the rates, operations and services of CenterPoint for customers located within the City <br />of La Porte under Section 33.001 of the Public Utility Regulatory Act (“PURA”) in the <br />Texas Utilities Code. The new rates would affect rates, operations or services for <br />CenterPoint retail customers within the City. <br /> <br />PURA Sections 36.102 and 36.108 provide that the new rates take effect on the thirty- <br />th <br />fifth (35) day of filing. Additionally, PURA Section 36.108 provides that a local <br />regulatory authority may suspend the operation of the Application for ninety (90) days <br />beyond the date the new rates would otherwise be effective. PURA Section 36.109 <br />provides that unless the local regulatory authority establishes interim rates, the rates in <br />effect at the time the Application is filed remain in effect during the suspension period. <br /> <br />The City has been informed that the Houston Coalition of Cities consultant and outside <br />counsel will review the Application, perform a coordinated analysis of the new rates, <br />obtain additional information from CenterPoint, receive public comments, and prepare <br />a rate ordinance recommendation to City Council. The expert utility rate consultant <br />retained to review the Application on behalf of the Coalition have not had sufficient time <br />to determine whether CenterPoint has justified its request for new rates. The Coalition’s <br /> <br />