HomeMy WebLinkAboutR-2015-07 deny Application for Approval of Distribution Cost Recovery Factor (DCRF) proposed by CenterPoint Energy Houston Electric,LLC RESOLUTION NO. 2015-
A RESOLUTION OF THE CITY OF LA PORTE, TEXAS, PERTAINING TO
CENTERPOINT ENERGY HOUSTON ELECTRIC, LLC'S APPLICATION FOR
APPROVAL OF A DISTRIBUTION COST RECOVERY FACTOR PENDING AS
DOCKET NO. 44572 AND RELATED PROCEEDINGS.
WHEREAS, on or about April 6, 2015, CenterPoint Energy Houston
Electric, LLC ("CenterPoint Houston") filed an Application for Approval of a
Distribution Cost Recovery Factor ("DCRF") with the Public Utility Commission of
Texas ("Commission ") under Docket No. 44572; and
WHEREAS, Section 36.210 of the Public Utility Regulatory Act authorizes
an electric utility company to request periodic adjustment to its rate schedule
between full base rate cases due to changes in the utility's invested capital by
including a DCRF in its Commission approved rates; and
WHEREAS, CenterPoint Houston is requesting $16,704,985 to be
recovered through ratepayers for its net distribution system invested capital; and
WHEREAS, any DCRF ordered by the Commission in the proceedings
could ultimately affect CenterPoint Houston's rates for wholesale electric
transmission customers and for end-use retail electric customers in CenterPoint
Houston's certificated service territory; and
WHEREAS, the Commission referred the proceedings to the State Office
of Administrative Hearings (SOAH) on April 7, 2015, 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
July 17, 2015, 46 days before September 1, 2015, the effective date unless good
causes exists for a later date pursuant to section 25.243(e)(6)(C) of the PUC
Substantive Rules; 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 by 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 participation of the City of
La Porte ("City") 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 DCRF application; 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 DCRF recovery factor.
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 APPROVED this the 11th day of May, 2015.
CITY PORTE
By:
L uis R. Rig
Ma o
ATTEST: APPROVED:
Ekt�
Patrice Fogarty Clark T. Askins
City Secretary Assistant City Attorney
2
pt, CITY OF HOUSTON Annise D. Parker
. Administration & Regulatory Affairs Mayor
Department Tina Pamz Director
Administration&Regulatory
Affairs Department
P.O.Box 1561
April 16,2015 Houston;Texas 77251.1562
T.832:393:8501
F.832 393;8527
To: Cities Located in CenterPoint Energy Houston Electric, LLC Service www_houstonix.noy/ara
Territory
Re: Invitation to join the Houston Coalition of Cities in the CenterPoint Energy
Houston Electric, LLC Distribution Cost Recovery Factor Proceeding
On April 6, 2015 CenterPoint Energy Houston Electric, LLC (CenterPoint or Company) filed an application for
approval of a Distribution Cost Recovery Factor (DCRF) in each municipality exercising original jurisdiction
over CenterPoint's electric rates. CenterPoint's DCRF request represents a $16.7 million increase for service to
retail electric customers within CenterPoint's service area. Approximately 53% of the request is allocated to the
residential class. Since the issues to be addressed in this rate filing will impact municipalities similarly,the City of
Houston is inviting you to participate in the Houston Coalition of Cities, a Coalition representing municipalities'
interests in the CenterPoint DCRF proceeding.No financial contributions by member cities will be required.
Pursuant to Section 36.210 of the Public Utility Regulatory Act and Public Utility Commission (PUC)
Substantive Rule 25.243,the DCRF permits CenterPoint to adjust its rates for changes in certain distribution costs
outside of a full base rate proceeding. The municipal timeframe to review the filing and make a final decision
approving, modifying, or rejecting the application is 60 days. Therefore, the deadline for cities to adopt a rate
ordinance is June 5, 2015, or the request will be deemed denied and consolidated with the proceeding at the
PUC.The PUC has until September 1,2015(unless the deadline is extended)to issue a Final Order.
The City of Houston organized a team of experts to review the rate request and to assist in the preparation of a
final recommendation. The City of Houston retained Alton Hail, Adams and Reese to represent the collective
interests of the coalition in this matter. The City also engaged Scott Norwood, Norwood Consulting, an expert in
utility rates to review the rate filing and prepare a final recommendation. Unlike a full base rate proceeding, the
cities' ability to perform a comprehensive review of the DCRF request is limited due to substantive and
procedural limitations including the truncated timeframe for review and limitations on the scope of the cities'
review and discovery.
A conference call is scheduled for April 22,2015 at 3:OOPM.The call-in information for the meeting is as follows:
1)dial 1.866.574.2770;2)enter conference code 5941750.At that time we will provide an overview of the DCRF
with highlights of the major issues, and establish points of contact for further communication. Please confirm
your participation in the call by contacting Alisa Talley at 832.393.8531 or Alisa.TalIey@ltoustontx.gov.
Attached is a draft resolution for submission to your municipality's governing body. Action by your governing
body is necessary for participation in the Coalition and intervention at the PUC.
Respectfully,
Tina Paez, Director
Administration and Regulatory Affairs Department
City of Houston
Council Members: Brenda Stardig Jerry Davis Ellen R.Cohen Dwight A.Boykin Dave Martin Richard Nguyen Oliver Pennington Edward Gonzalez
Robert Gallegos Mike Laster Larry V.Green Stephen C.Costello David W.Robinson Michael Kubosh C.O."Brad'Bradford Jack Christie
Controller. Ronald C.Green