HomeMy WebLinkAboutR-2015-08 join other municipalities/part of Houston Coalition of Cities/with CenterPoint Energy Houston Electric, LLC.'s Application for Approval of Distribution Cost Recovery Factor (DCRF RESOLUTION NO. I�—L)2
A RESOLUTION OF THE CITY OF LA PORTE, TEXAS, FINDING THAT
CENTERPOINT ENERGY HOUSTON ELECTRIC, LLC'S FILING OF AN
APPLICATION FOR APPROVAL OF A DISTRIBUTION COST RECOVERY FACTOR
WITHIN THE CITY SHOULD BE DENIED; FINDING THAT THE CITY'S
REASONABLE EXPENSES FOR DENYING THE APPLICATION FOR APPROVAL OF
A DISTRIBUTION COST RECOVERY FACTOR SHALL BE REIMBURSED BY THE
COMPANY; FINDING THAT THE MEETING AT WHICH THIS RESOLUTION IS
PASSED IS OPEN TO THE PUBLIC AS REQUIRED BY LAW IN COMPLIANCE WITH
THE OPEN MEETINGS LAW; REQUIRING NOTICE OF THIS RESOLUTION TO THE
COMPANY; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City of LaPorte, Texas, ("City"), is an electric utility customer of
CenterPoint Energy Houston Electric, LLC ("CenterPoint Houston") and a regulatory authority
with an interest in the rates and charges of CenterPoint Houston; and
WHEREAS, the City is served by CenterPoint Houston and has resolved to efficiently
and cost effectively review and respond to issues affecting rates and recovery factors charged in
CenterPoint Houston's service area; and
WHEREAS, on or about April 6, 2015, CenterPoint Houston filed with the City an
Application for Approval of a Distribution Cost Recovery Factor ("DCRF") pursuant to Section
36.210 of the Public Utility Regulatory Act("PURA") and Substantive Rule 25.243, and asks that
its regulatory authority, which includes the City, and the Public Utility Commission of Texas
("Commission") approve CenterPoint Houston's proposed Rider DCRF, with a proposed
effective date for rates under Rider DCRF of September 1, 2015; and
WHEREAS, the City found, upon its review of CenterPoint Houston's DCRF, that
CenterPoint Houston's distribution revenues will increase by approximately $16,704,985 on an
annual basis as compared to the distribution revenues approved in its most recent rate case,
Docket No. 38339, which rates the City already deems excessive; and
WHEREAS, the City denies CenterPoint Houston's Application for Approval of a
Distribution Cost Recovery Factor("DCRF").
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
LA PORTE, TEXAS:
Section 1. That the distribution revenues proposed by CenterPoint Houston's DCRF are
hereby found to be unreasonable and shall be denied.
Section 2. That CenterPoint Houston shall continue to charge its existing rates to
customers within the City.
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Section 3. That the City's reasonable expenses incurred in denial of the DCRF shall be
reimbursed in full by CenterPoint Houston within 30 days of the adoption of this Resolution.
Section 4. That it is hereby officially found and determined that the meeting at which
this Resolution is passed is open to the public as required by law, and the public notice of the
time,place, and purpose of said meeting was given as required.
Section 5. That the City Secretary of the City of La Porte will send a copy of this
Resolution to CenterPoint Energy Houston, Attn: Keith L. Wall, Director of Regulatory Affairs,
P. O. Box 1700, Houston, TX 77251-1700.
Section 6. This Resolution shall be effective on its passage and approval.
PASSED AND APPROVED this the 11th day of May, 2015.
CITY O LA PORTE
By:
Ltuis . Rigby
Mor
ATTEST: APPROVED:
�L-
Patrice Fogarty lar c T. Askin
City Secretary Assistant City Attorney
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CenterPoint Energy
�Cn�� P.O.Box 1700
•g� April 6, 2015 Houston,TX 77251-1700
Mayor and City Council Members
City of La Porte
La Porte, Texas
Re: Application of CenterPoint Energy Houston Electric, LLC for Approval of a
Distribution Cost Recovery Factor
Mayor and City Council Members:
CenterPoint Energy Houston Electric, LLC ("CenterPoint Houston" or the "Company")
files this Application for Approval of a Distribution Cost Recovery Factor.("DCRF")pursuant to
Section 36.210 of the Public Utility Regulatory Act ("PURA") and Substantive Rule 25.243 and
asks that its regulatory authorities, which include your city and the Public Utility Commission of
Texas (".Commission") approve CenterPoint Houston's proposed Rider DCRF. The Company's
proposed effective date for rates under Rider DCRF is September 1, 2015.
CenterPoint Houston is filing this Application simultaneously with the Commission and
all municipal authorities that have retained jurisdiction over CenterPoint Houston's rates. As
explained in the accompanying DCRF filing package, this is CenterPoint Houston's first DCRF
filing. The Company's requested DCRF takes into account changes in the Company's net
distribution system invested capital from the period January 1, 2010 through December 31, 2014.
If. the DCRF requested in this Application is approved, CenterPoint Houston's distribution
revenues will increase by approximately $16,704,985 on an annual basis as compared to the
distribution revenues approved in its most recent rate case, Docket No. 38339.
Municipalities that have not ceded their jurisdiction to the Commission have exclusive
original jurisdiction over this filing, as it affects service within their municipal boundaries. This
jurisdiction extends for 60 days from the date of this filing. Pursuant to Commission Substantive
Rule 25.243(c)(1)(B), on the 601h day after the filing of this Application with the city, the
Application is deemed appealed to the Commission, regardless of whether the city:approves or
denies the application, and the appeal will be consolidated with the CenterPoint Houston's
DCRF proceeding before the Commission.
If you desire any additional information concerning this filing, please contact Denise
Gaw at(713)207-5956.
Very truly yours,
Keith L.Wall
Director of Regulatory Affairs
Enclosures