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

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City of La Porte March 29, 2018 Page 2 Current Proposed Proposed Rate Customer 2018 Interim Customer Increase to Schedules Charge Adjustment' Charge Each Bill R-2096-I-GRIP 2018; $15.75 $0.72 $16.47 $0.72 R-2096-U-GRIP 2018 per customer per customer per customer per customer Residential per month per month per month per month GSS-2096-I-GRIP 2018; $18.25 $1.10 $19.35 $1.10 GSS-2096-U-GRIP 2018 per customer per customer per customer per customer General Service per month per month per month per month Small GSLV-627-I-GRIP 2018; $180.00 $23.03 $203.03 $23.03 GSLV-627-U-GRIP 2018 per customer per customer per customer per customer General Service per month per month per month per month Large Volume Along with and in support of the IRA, CenterPoint also includes the following: (a) An earnings monitoring report showing the Company's earnings for the Texas Coast Division during the 2017 calendar year (under the "Earnings Report" section of the enclosed filing). (b) An Interim Cost Recovery and Rate Adjustment Report containing accounting schedules and project reports for the GRIP Adjustment Period including a description of(i)the projects undertaken during the GRIP Adjustment Period(ii) the investment to provide utility service in the Texas Coast Division,which were both completed and placed in service during the GRIP Adjustment Period, (iii) the Company's prior utility investments in the Texas Coast Division that were either retired or abandoned during the GRIP Adjustment Period,and(iv)the cost, need and customers benefited by those investments and retirements (under the "Investment and Retirement Project Report"section of the enclosed filing). t On December 22,2017,the Tax Cuts and Jobs Act of 2017(the"TCJA")was signed into law. The TCJA reduced the federal corporate income tax rate from 35%to 21%. The Proposed 2018 Interim Adjustment in the table above has been calculated using the reduced corporate income tax rate of 21% Without the use of the reduced corporate income tax rate in the Company's 2018 GRIP filing,the 2018 Interim Adjustment for each class would be as follows:Residential$0.77;General Service Small$1.18; and General Service Large Volume$24.66.