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percentage increases in customer's base rate bills. Base rates cover CenterPoint's cost excluding the cost of gas and are the costs that are directly within CenterPoint's control. • Increase in Average Customer's Bill: o Residential Customer: 4.95% o Commercial Customer: 6.33% o General Services —Large Volume: 12.61 % "GRIP" Rate Application Under section 104.301 of the Gas Utility Regulatory Act ("GURA"), a gas utility is allowed to request increases in its rates to recover a return on investments it makes between rate cases. This section of GURA is commonly referred to as the "GRIP" statute, that is, the "Gas Reliability Infrastructure Program." Under a decision by the Supreme Court of Texas, the Court concluded that a filing made under the GRIP statute permitted gas utilities the opportunity to recover return on capital expenditures made during the interim period between rate cases by applying for interim rate adjustment and that proceedings under the GRIP statute did not contemplate either adjudicative hearings or substantive review of utilities' filings for interim rate adjustments. Instead, the Court concluded, the GRIP statute provides for a ministerial review of the utility's filings to ensure compliance with the GRIP statute and the Railroad Commission's rules, and that it is within the Railroad Commission's authority to preclude cities from intervening and obtaining a hearing before the Railroad Commission. Alliance of CenterPoint Municipalities In about 2007, coalition of cities known as the Texas Coast Utilities Coalition ("TCUC") of cities was formed by the Cities of Angleton, Baytown, Clute, Freeport, League City, Pasadena, Pearland, Shoreacres, West Columbia, and Wharton to coordinate their efforts in reviewing the rates, services, and operations of CenterPoint Energy Resources Corp., Texas Coast Division ("CenterPoint") within each City's respective boundaries. TCUC has been represented by the law firm of Herrera Law & Associates, PLLC (through Mr. Alfred R. Herrera) to assist in reviewing applications to change rates submitted by CenterPoint since formation of TCUC. The City of La Porte is part of other similar coalitions with regard to CenterPoint Energy - Houston Electric ("CEHE"), but is not participating in a group of similarly situated cities with regard to CenterPoint's gas -utility services. Joining in TCUC will benefit both La Porte and TCUC through addition of another city voice in the review of gas -utility rates, services, and operations in CenterPoint's Texas Coast Division. Currently, there are no fees or other dues applicable for joining TCUC. TCUC's primary focus is in rate cases involving CenterPoint. On a case -by -case basis, and as directed by TCUC, TCUC will solicit funding for projects outside of the ratemaking arena