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CenterPoint Energy Houston Electric <br />Rate Case Highlights <br />Updated April 30, 2019 <br /> <br />Approximate $193.4 million increase: <br />o $186.6 million collected from retail customers <br />o $6.8 million from wholesale transmission customers. <br />Refund $97 million to customers through a TCJA Rider (Tax Cut and Jobs Act) over a three-year period <br />o Reduces increase by approximately $32.4 million to $154.4 million annually <br />o For the average residential customer using 1,000 kWh per month, this equates to an approximate 1.91% <br />increase $2.50 per month for the first three years, assuming an existing retail rate of $0.125 per kWh. <br />o The TCJA Rider addresses the unprotected portion of the excess deferred income taxes (EDIT). <br /> The TCJA reduced the federal corporate income tax rate from 35% to 21% effective January 1, <br />2018. <br /> EDIT is that portion of the income taxes that the company already collected from the ratepayers, <br />but no longer has to pay to the federal government as a result of the TCJA. <br /> <br />Prudency determination on distribution capital investment made in the system since January 1, 2010. <br />o Reconciliation of Distribution Cost Recovery Factor (DCRF) adjustments filed 2015 to 2018. <br />o Allows CenterPoint to recover cost of new capital investment made since last rate case outside of a base <br />rate case <br />o Subject to final determination of reasonableness and prudency (capital expenditures) in this proceeding. <br />o Since the last rate case, the company implemented 4 DCRF increases with a cumulative total of <br />approximately $63.6 million. <br /> Because the DCRFs are cumulative, each DCRF is absorbed by the next one. <br /> The DCRF goes away once base rates are approved. <br /> <br />Next Steps: <br />its Application April 5, 2019). tƌĻğƭĻ ƓƚƷźŅǤ /ĻƓƷĻƩtƚźƓƷ ƷŷğƷ ǤƚǒƩ /źƷǤ źƭ ƭǒƭƦĻƓķźƓŭ ƚƩ ŷğƭ ƭǒƭƦĻƓķĻķ ƷŷĻ ĻŅŅĻĭƷźǝĻ <br />ķğƷĻ ƚŅ ƷŷĻ ƩğƷĻƭ͵ <br />Adopt a resolution joining the Houston Coalition of Cities as soon as possible <br /> <br />Timeline: <br />April 5, 2019: CenterPoint Energy Houston Electric filed request to increase rates with cities in its service area; and <br />filed parallel case at the PUC . <br />May 10, 2019: r 90 days (35 days after filing). <br />August 8, 2019: Deadline for cities to take final action, suspension period ends. <br /> <br /> <br />