HomeMy WebLinkAboutO-2019-3753 Denying retail electric rate increase proposed by CenterPoint Energy Houston Electric, LLC. ORDINANCE NO. 2019-3753
AN ORDINANCE RELATING TO THE RETAIL ELECTRIC RATES OF CENTERPOINT ENERGY
HOUSTON ELECTRIC, LLC WITHIN THE CITY OF LA PORTE, TEXAS; DENYING RATE
INCREASE REQUEST AND REVISED RATE SCHEDULES AND MAINTAINING CURRENT RATES
IN EFFECT; CONTAINING FINDINGS AND OTHER PROVISIONS RELATING TO THE
FOREGOING SUBJECT;PROVIDING FOR SEVERABILITY;AND DECLARING AN EMERGENCY.
WHEREAS, on April 5, 2019, CenterPoint Energy Houston Electric, LLC ("CenterPoint") submitted a
Statement of Intent and Application for Authority to Change Rates ("Application")within the City of La Porte,
Texas ("City"), requesting a rate increase,riders, and tariff changes(collectively"New Rates"); and
WHEREAS, the City, as a local regulatory authority, exercises original jurisdiction over the rates,
operations and services of CenterPoint for customers located within the City under Section 33.001 of the Public
Utility Regulatory Act("PURA") in the Texas Utilities Code; and
WHEREAS,the City is a member of the Coalition of Cities("Coalition")in this CenterPoint electric base
rate proceeding, as approved by resolution 2019-07 by City Council on May 13, 2019; and
WHEREAS, the New Rates would affect rates, operations or services for CenterPoint retail customers
within the City; and
WHEREAS,on May 10, 2019,City Council adopted Ordinance No. 2019-3738 suspending the effective
date of the New Rates until August 8, 2019 (the"Suspension Period"); and
WHEREAS,during the Suspension Period,the City participated as part of the Houston Coalition of Cities
("Coalition")with other cities in the CenterPoint rate case proceedings at the Public Utility Commission of Texas
("PUC") related to rates for CenterPoint's unincorporated area (environs) customers and gathered information
from CenterPoint; and
WHEREAS,on La Porte City Council held a public hearing("Public Hearing") regarding CenterPoint's
Application on July 22, 2019; and
WHEREAS,the expert utility rate consultants retained to review CenterPoint's New Rates on behalf of
the Coalition have concluded that CenterPoint has not yet demonstrated through its application and testimony that
its New Rates are just and reasonable,non-discriminatory and in compliance with all applicable law; and
WHEREAS, City Council determines that CenterPoint's rates in effect as of April 5, 2019, ("Current
Rates")are the just and reasonable rates to be observed and to remain in force within the City; and
WHEREAS, City Council anticipates that a denial of the New Rates will be appealed to the PUC; and
WHEREAS,denial of the New Rates would maintain the Current Rates in effect for customers within La
Porte,Texas until further changed under the Utilities Code; and
WHEREAS,the City Council finds that the public interest will be served by the adoption of an ordinance
denying the New Rates, because they promote the adequate and efficient provision of service, are just and
reasonable and nondiscriminatory and are in compliance with all applicable law;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE,
TEXAS:
Section 1. That the facts contained in the preamble of this Ordinance are determined to be true and correct and
are hereby adopted as part of this Ordinance.
Section 2. That CenterPoint's application for New Rates on file with the City is denied in total.
Section 3.That the rates currently in effect as of April 5,2019,for CenterPoint customers receiving service within
the City of La Porte, Texas shall remain in effect until further changed under applicable law.
Section 4. If any provision, section, subsection, sentence, clause or phrase of this ordinance,or the application
of same to any person or set of circumstances is for any reason held to be invalid, the validity of the remaining
portions of this ordinance or their application to other persons or sets of circumstances shall not be affected
thereby, it being the intent of the City Council in adopting this ordinance that no portion hereof or provision or
regulation contained herein shall become inoperative or fail by reason of any unconstitutionality, voidness or
invalidity of any other portion hereof, and all provisions of this ordinance are declared to be severable for that
purpose.
Section 5. The City Council officially finds,determines,recites and declares that a sufficient written notice of
the date,hour,place and subject of this meeting of the City Council was posted at a place convenient to the public
at the City Hall of the City for the time required by law preceding this meeting,as required by the Open Meetings
Law,Chapter 551,Texas Government Code; and that this meeting has been open to the public as required by law
at all times during which this ordinance and the subject matter thereof has been discussed,considered and formally
acted upon. The City Council further ratifies, approves and confirms such written notice and the contents and
posting thereof.
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PASSED AND APPROVED this 0(or, day of July,2019
CITY OF L: ' P, 'TE,TEXAS
Aga A
LsuisR'Iby,May o f
ATTEST APPROVED AS TO FORM
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et2 ,' oodward, City Secretary Clark Askins,Assistant City Attorney