03-29-18 Annual GRIP Adjustment for the Texas Coast Divisions

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CenterPoint CenterPoint Energy 1111 Louisiana Street Energy Houston,TX 77002-5231 P.O.Box 2628 March 29, 2018 Houston,TX 77252-2628 Mayor and City Council City of La Porte La Porte, Texas Re: CenterPoint Energy 2018 Annual GRIP Adjustment for the Texas Coast Division Dear Madam or Sir: CenterPoint Energy Resources Corp., d/b/a CenterPoint Energy Entex and CenterPoint Energy Texas Gas ("CenterPoint" or the "Company"), files the enclosed tariffs and supporting documents, including a CD of the electronic files, with the City of La Porte ("City") consistent with Section 7.7101 of the Railroad Commission of Texas("Commission")Gas Services Division Rules and Section 104.301 of the Texas Utilities Code to establish the annual gas reliability infrastructure program("GRIP") interim rate adjustment("IRA")for the Company's Texas Coast Division, which includes the City. The proposed IRA will affect rates for natural gas service customers located in the City. Simultaneously with this filing,CenterPoint makes the same GRIP filing with the Commission for customers located in the City's environs and cities of the Texas Coast Division that have ceded original jurisdiction to the Commission. CenterPoint consistently supplies its customers in the Texas Coast Division with safe and dependable natural gas service by prudently investing in additions and upgrades to its delivery system. The Company will continue to prudently invest in its infrastructure in order to improve its natural gas service to its customers and to anticipate and meet their needs under all operating conditions. The GRIP program enables a gas utility such as CenterPoint to begin recovery of its incremental capital investment in the system, subject to a prudence review in its next rate case. Consistent with Section 104.301 of the Texas Utilities Code and Commission precedent,the City's review of this GRIP filing is limited to a ministerial review to ensure compliance with the GRIP statute. Pursuant to applicable law, the proposed IRA will become effective on May 28, 2018, unless the City suspends that date for a period of no longer than forty-five(45)days. The approved IRA will be applied to the monthly customer charge and will remain in effect until superseded by the earlier of(1)the effective date of the Company's next annual GRIP adjustment for the Texas Coast Division;or(2)the issuance of a final order in a rate setting proceeding for the Texas Coast Division. As detailed in the attached schedules and supporting material, the Company invested $31,889,184 in its Texas Coast Division between October 1, 2016 and December 31, 2017, and the applicable IRA is: