HomeMy WebLinkAboutR-2024-05RESOLUTION 2024-05
RESOLUTION BY THE CITY OF LA PORTE, TEXAS ("CITY") DENYING THE
STATEMENT OF INTENT TO CHANGE RATES FILED ON OR ABOUT OCTOBER 30,
2023, BY CENTERPOINT ENERGY RESOURCES CORPORATION, DB/A
CENTERPOINT ENERGY ENTEX AND CENTERPOINT ENERGY TEXAS GAS;
AUTHORIZING CONTINUED PARTICIPATION IN THE TEXAS COAST UTILITIES
COALITION OF CITIES; AUTHORIZING INTERVENTION IN PROCEEDINGS
RELATED TO CENTERPOINT'S STATEMENT OF INTENT; REQUIRING THE
REIMBURSEMENT OF MUNICIPAL RATE CASE EXPENSES; AUTHORIZING
REPRESENTATION OF THE CITY BY SPECIAL COUNSEL; FINDING THAT THE
MEETING COMPLIES WITH THE OPEN MEETINGS ACT; MAKING OTHER
FINDINGS AND PROVISIONS RELATED TO THE SUBJECT
WHEREAS, CenterPoint Energy Resources Corporation, DB/A CenterPoint Energy
Entex and CenterPoint Energy Texas Gas ("CenterPoint" or "Company") filed a Statement of
Intent with the City on or about October 30, 2023, to change its rate schedules within the corporate
limits of this municipality, specifically to increase its system -wide, annual revenue requirement by
approximately $37.4 million; and
WHEREAS, the City is a regulatory authority under the Gas Utility Regulatory Act
("GURA") and under Chapter 104, §103.001 et seq. of GURA has exclusive original jurisdiction
over CenterPoint's rates, operations, and services within the municipality; and
WHEREAS, in order to maximize the efficient use of resources and expertise in reviewing,
analyzing and investigating CenterPoint's rate request and its changes in tariffs it is prudent to
coordinate the City's efforts with a coalition of similarly situated municipalities; and
WHEREAS, the City, in matters regarding applications by CenterPoint to change rates,
has in the past joined with other local regulatory authorities to form the Texas Coast Utilities
Coalition of Cities (TCUC), and hereby continues its participation in TCUC; and
WHEREAS, CenterPoint's rate request consists of a voluminous amount of information
including CenterPoint's rate -filing package, pre -filed direct testimony, exhibits, schedules, and
workpapers; and
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WHEREAS, CenterPoint proposes to implement its proposed increase in rates on or about
December 4, 2023, and
WHEREAS, CenterPoint's application fails to establish that its overall revenue request
resulted in no more than an amount that will permit CenterPoint a reasonable opportunity to earn
a reasonable return on the utility's invested capital used and useful in providing service to the
public in excess of its reasonable and necessary operating expenses; and
WHEREAS, CenterPoint's application fails to establish that its proposed rates are just and
reasonable; and
WHEREAS, CenterPoint may exercise its statutory right to appeal a City decision
regarding CenterPoint's request to increase rates to the Railroad Commission of Texas; and
WHEREAS, CenterPoint filed its Statement of Intent to increase its revenue and change
its rate with the City and with the Railroad Commission of Texas on the same date, October 30,
2023, and it is important to intervene in the proceedings before the Railroad Commission of Texas
eo 1 because the Railroad Commission's decisions will impact rates within the City;
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
LA PORTE, TEXAS THAT:
Section 1. The findings set out in the preamble are in all things approved and incorporated
herein as if fully set forth.
Section 2. CenterPoint's application fails to show that its proposed rates are just and
reasonable.
Section 3. The City hereby DENIES CenterPoint's request to increase its revenue and change
its rates and in support of DENIAL finds that:
A. CenterPoint failed in its burden of proof to establish that its requested increase in
revenue or the changes set forth in its tariffs attached to CenterPoint's Statement of
Intent to change rates, results in just and reasonable rates;
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(49� B. CenterPoint failed in its burden of proof to establish that adoption of its proposed rate
base, expenses, investment, return on equity, and other rate issues as presented in
CenterPoint's Statement of Intent to increase rates, result in just and reasonable rates.
Section 4. The City authorizes intervention in proceedings related to CenterPoint's Statement
of Intent before the Railroad Commission of Texas and any related proceedings in any courts of
law.
Section 5. The City continues its participation with other cities in a coalition of cities known as
the Texas Coast Utilities Coalition of Cities (TCUC) with the understanding that the Steering
Committee of TCUC is to provide direction and guidance to Special Counsel representing said
cities.
Section 6. The City hereby retains Herrera Law & Associates, PLLC as Special Counsel to
represent the City with regard to CenterPoint's Statement of Intent and related proceedings,
including proceedings before local and state regulatory authorities and any court of law and
/Oto� authorizes Special Counsel to employ such rate experts as may be necessary for review and
evaluation of CenterPoint's Statement of Intent.
Section 7. The City, in coordination with the TCUC Steering Committee, shall review the
invoices of the lawyers and rate experts for reasonableness before submitting the invoices to
CenterPoint for reimbursement.
Section 8. The City hereby orders CenterPoint to reimburse the City's rate case expenses as
provided in the Gas Utility Regulatory Act and that CenterPoint shall continue to do so on a
monthly basis and within 30 days after submission of the City's invoices for the City's reasonable
costs associated with the City's activities related to this rate review or to related proceedings
involving CenterPoint before the City, the Railroad Commission of Texas, or any court of law.
Section 9. A copy of this resolution shall be sent to Mr. Alfred R. Herrera, Herrera Law &
Associates, PLLC, 4400 Medical Parkway, Austin, Texas 78756, and a courtesy copy to Mr.
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/4sm-1 Patrick Peters, VP — Regulatory Legal, AGC, CenterPoint Energy, Inc., 1005 Congress Ave., Suite
650, Austin Texas 78701.
Section 10. The City Council officially finds, determines, and 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 resolution 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.
Section 11. This resolution supersedes any prior inconsistent or conflicting resolution or
ordinance.
A" IN Section 12. This resolution shall become effective from and after its passage.
PASSED AND APPROVED this, the 13'h day of November, 2023.
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)FUORTE, TEXAS 0
APPROVED AS TO FORM:
Clark T. Askins, City Attorney
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