HomeMy WebLinkAboutOrd. 2022-3883 deny CenterPoint DCRF, 4-25-22ORDINANCE 2022-3883
AN ORDINANCE DENYING THE APPLICATION OF CENTERPOINT ENERGY
HOUSTON ELECTRIC, LLC , FOR APPROVAL TO AMEND ITS DISTRIBUTION COST
RECOVERY FACTOR FILED WITH LA PORTE , TEXAS ON APRIL 5, 2022;
CONTAINING FIND INGS AND PROVISIONS RELATED TO THE FOREGOING
SUBJECT.
WHEREAS, on o r about April 5 , 2022, CenterPoint Energy Houst on Electri c , LLC
("Center Po int ") fi led an App li cat ion for A pproval to Amend its Distrib ution Cost Recovery
Factor ("DC RF") with La Porte , Texas ("C ity") p ursuant to Sect ion 36.210 of the Texas
Pub li c Utility Reg ulat ory Act ("PURA ") to increase rates under t he DCRF ride r; and
WHEREAS, Cente rPoint filed a n app li cation to imp lement a distribut ion cost
recovery f actor in 20 18 for annual reven ue requ irement of $82,620,101 and t he Public
Utility Com mission approved $42 ,400,04 9 mi llion of the requested amount ("2018
DCRF "); and
WHEREAS , CenterPoi nt's DCRF fil ed thi s yea r amends its 2018 DCRF amou nt of
$4 2 mi ll ion to a total a nnua l revenue requireme nt of $198 ,422,017; a nd
WHEREAS , after adj usting for load growth , CenterPoint req uest s a n annua l
revenue requirement of $1 4 5 ,680,8 10; and
WHEREAS , th e dead li ne for acting o n Ce nterPoint 's DC RF application is June 4 ,
2022 and t he effective date of CenterPoi nt's amended DC RF ride r is Sept emb e r 1, 2022;
an d
WHEREAS, th e City is a membe r of t he Ho uston Coa lit ion of Cit ies ("Coal ition") in
t his DCRF proceeding, as approved by Resolu t io n No . 2022-10 by City Council on April
25 ,2022; and
WHEREAS , th e expert ut ility rate consultant retained to review Cente rP o i nt's
DCRF app lica tio n o n be hal f of th e Coa li t ion ("consu ltant ") has not had suffi cient time to
determine w hether the proposed refund is th e correct a mount or t hat th e proposed refun d
mechan ism a nd interest rate are appropriate ; and
WHEREAS, th e co nsultant has not yet determi ned t hat CenterPo int has
esta bli shed that th e costs it seeks to recover are e lig ible fo r recovery t h rough a DCR F
rider pu rsuant to PU RA ; and
WHEREAS , City Counci l find s that it is in th e best interests of th e ratepayers
served by CenterPoint within th e Ci ty th at the DCRF app licatio n be de nied. NOW
THEREFORE;
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE,
TEXAS:
Section 1. That the statements and findings set out in the preamble t o this
Ordinance are determined to be true and correct and are hereby adopted as part of this
Ordinance.
Section 2. That the City of La Porte , Texas hereby denies CenterPoint's
Application for Approval to Amend Its Distribution Cost Recovery Factor rider and the
ensuing rate increase.
Section 3. That CenterPoint's Amendment to its Distribution Cost Recovery
Factor appli cation on file with the City is denied in total.
Section 4. That 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 unconstitutional, void or invalid , the validity of the remaining
portions of this ordinance or their application to other persons of 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 regu lation 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 severab le for that
purpose.
Section 5. That 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 th e City Hall of the City for
the time required by law preceding this meeting, as required by the Open Meetings Law,
Tex. Gov 't. Code Ann ., ch.551 (Vernon 2004 & Supp. 2005); and that this meeting was
open to the public as required by law at all times during which this ordinance and the
subject matter thereof have been discussed, formally considered and formally acted
upon. The City Council further ratifies , approves and confirms such written notice and
the contents and posting thereof.
Section 6. That this ordinance shall take effect immediately upon its passage
and approval.
PASSED AND APPROVED this ~~ay of~-""'-"T-,'---t-
ATTEST: APPROVED:
C lark Askins, Assistant City Attorney