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HomeMy WebLinkAboutR-2010-17 authorize City to join Houston Coalition of Cities representing municipalities’ interest in utility rate proceedings 10 REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested: July 26, 20 I 0 Appropriation Requested By: Ron Bottoms Source of Funds: Department: Adm i nstration Acc't Number: Report: ~Resolution: X Ordinance: Amount Budgeted: Exhibits: Coalition of Cities Resolution Amount Requested: Exhibits: Bud2.eted Item: YES NO Exhibits: SUMMARY & RECOMMENDATION Attached is a resolution to join the Houston Coalition of Cities for intervening into the CenterPoint Energy rate case. On June 30, 2010, CenterPoint Houston tiled a Statement of Intent to change electric rates within its service territory a proposed $94.5 million increase in its revenue requirement. Therefore, the City of Houston is inviting our pal1icipation in the Houston Coalition of Cities, a Coalition representing municipalities' interests in the rate case proceedings. No financial contributions by member cities will be required. The City of Houston will pay all costs associated with the proceedings. According to representatives of the City of Houston, in a recent rate case the cost to the consumer was around 26 cents per month, for three years, for the rate case expenses but the rate case proceedings saved the consumers $6 per month of ongoing expenses. Their point was that intervening in these proceedings do provide a considerable benefit to the consumers. Action Required by Council: C )nsider approval of join ing the Houston Coal ition of Cities by passing the attached resolution. <J hy )/1) , Date RESOLUTION NO. 2010- 11 RESOLUTION OF THE CITY OF LA PORTE, TEXAS, PERTAINING TO CENTERPOINT ENERGY HOUSTON ELECTRIC, LLC APPLICATION TO CHANGE ELECTRIC RATES PENDING AS DOCKET NO. 38339 AND RELATED PROCEEDINGS. WHEREAS, on or about June 30, 2010, CenterPoint Energy Houston Electric, LLC ("CenterPoint Houston") filed a Statement of Intent and Application for Authority to Change Rates ("New Rates") with the Public Utility Commission of Texas ("Commission ") under Docket No. 38339; and WHEREAS, any rate changes ordered by the Commission in the proceedings could affect CenterPoint Houston's rates for wholesale electric transmission customers and for transmission and distribution services to competitive retailers such as retail electric providers, municipalities and electric cooperatives serving end-use retail electric customers in CenterPoint Houston's certificated service territory and may affect the retail electric customers of those competitive retailers depending on whether and how the competitive retailers choose to pass along to their retail electric customers those changed rates; and WHEREAS, the Commission referred the proceedings to the State Office of Administrative Hearings (SOAH) on June 30, 2010 requesting the assignment of an Administrative Law Judge to conduct a hearing and issue a proposal for decision to the Commission if necessary; and WHEREAS, the deadline for the Commission to rule on the proceedings is January 3,2011, 185 days after June 30,2010, the date on which CenterPoint Houston submitted its application for New Rates to the Commission; and WHEREAS, certain municipalities have indicated their desire to join with the City of Houston, Texas in a coalition of cities interested in the conduct of the proceedings and to authorize the coalition to intervene on behalf of the participating municipalities therein; and WHEREAS, the coalition of cities shall be led ty the City of Houston, which shall direct the selection of legal counsel and consultants on behalf of the coalition. WHEREAS, interested parties must seek party status to comply with the intervention deadline to be set in the proceedings; and WHEREAS, the City Council finds that the City's participation in the coalition of cities will achieve coordinated efforts among similarly situated affected municipalities in order to maximize the efficient use of resources and expertise in reviewing, analyzing, and investigating CenterPoint Houston's rate filing; and WHEREAS, City Council has determined that it is in the best interest of the City that the City participates with the coalition of cities in the proceedings; NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LA PORTE, TEXAS: Section 1: That the statements and findings recited in the preamble to this Resolution are found to be true and correct and are hereby adopted as part of this Resolution. Section 2. That the City is hereby authorized to join with other municipalities as part of the coalition of cities and to participate to the fullest extent permitted by law in proceedings affecting the rates, operations and services of CenterPoint Houston for customers within the City of La Porte, Texas and in particular regarding the New Rates. Section 3. That the City is hereby authorized to intervene in the proceedings as a member of the coalition. Section 4. That such outside counsel that the City of Houston may select, shall represent the City in all of the proceedings and are hereby authorized to take all legal and other actions necessary to forward the interests of the City in the proceedings and all matters related to such proceedings, including without limitation any hearings, conferences, negotiations and related Proceedings.. Section 5. That this Resolution shall take effect immediately upon its passage and approval in the manner required by the City Charter and ordinances. PASSED AND ADOPTED this ~ day of CluJ tj , 2010 APPROVED this >> day of \J~ ,2010 ~~J Daryl onar Mayor ro- T em of the City of La Porte , Texas L)h8T V!ifi~ ~wdLl Martha Gillett, City Secretary A?r~r ~ Clark T. Askins, Asst. City Attorney 2 CONFLICT OF INTEREST AFFIDAVIT THE STATE OF TEXAS i COUNTY OF HARRIS ~ I. ~ V L-~ GAtS €L-JU>.u -s (\- as a member of the City of La Porte ~ V IV LIL.- , make tlrls affidavit and hereby on oath state the following: I have a substantial interest in a business entity or real property as defined in Chapter 171, Texas Local Government Code, and a vote is to be 1ak.en or a decision is to be made that will have a special economic effect on this business eotity or real property. The agenda item c)( t'JvW\b-e.-IO ~(L J~ 'Lv, ?D~, affecting this business entity or real property is: r-. -e "IL !Lt!.."5,)t,v-!t J,/ .A V+AMP../#-J ~..e. ~ \-t. ~ . Ol() ~ n-e ~\Js\o;c( CoN.,-ho,uo F ('t-\'"~'; oN fZA-+~ (Jfl-OC.-Q-<?{/I/lf] ") S. "LOIO-/7 COMPLETE (A) OR (B): (A) The business entity is c.e.~~ ~O(N~ EiN.f'1ItJtj (name); or (B) The real property is located at: I have a substantial interest for the following reasons: (check all which are applicable) _ Ownership of 10% or more of the voting stock or shares Dfthe business entity. _ Ownership of 10% or more or $15,(0) or more of the fair market value Dithe ~ entity V Ftm1s ~ed from the business entity exceed 10% of gross income for the previoos year. _ Real property is involved ml I have an equitable or legal ownership of the property with a fair marl.:et value of at least $2,500. _ A relative of mine has a substmtial interest in !be business entity or real property that would be a:ffected by a decision of the public body of which I am a member. Upon filing of this affidavit with the City Secretary, I affirm that I will abstain from voting on any decision involving this business entity or real property and from any further participation on this matter by discussion or debate. Singed this 2<0 day of ~UL~ ,20~. ChJ ~} Signature of Official THE STATE OF TEXAS ~ COUNTY OF HARRIS ~ ~me 11 ~; /Ie-H on this day personally appeared , of"'iJjL..lcnown to me to be the person whose name is subscribed to the foregoing' and aclaxlwledged to me that he/she executed the same for the purposes and consideration therein expressed. Given under my hand and seal of office ~~ day of , 2O~. (SEAL) MARTHA GILLETT My Commission Expires August 31. -2013 --- -- -- ~.,...~" ..