O-2019-3753 Denying retail electric rate increase proposed by CenterPoint Energy Houston Electric, LLC.

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ORDINANCE NO. 2019-3753 AN ORDINANCE RELATING TO THE RETAIL ELECTRIC RATES OF CENTERPOINT ENERGY HOUSTON ELECTRIC, LLC WITHIN THE CITY OF LA PORTE, TEXAS; DENYING RATE INCREASE REQUEST AND REVISED RATE SCHEDULES AND MAINTAINING CURRENT RATES IN EFFECT; CONTAINING FINDINGS AND OTHER PROVISIONS RELATING TO THE FOREGOING SUBJECT;PROVIDING FOR SEVERABILITY;AND DECLARING AN EMERGENCY. WHEREAS, on April 5, 2019, CenterPoint Energy Houston Electric, LLC ("CenterPoint") submitted a Statement of Intent and Application for Authority to Change Rates ("Application")within the City of La Porte, Texas ("City"), requesting a rate increase,riders, and tariff changes(collectively"New Rates"); and WHEREAS, the City, as a local regulatory authority, exercises original jurisdiction over the rates, operations and services of CenterPoint for customers located within the City under Section 33.001 of the Public Utility Regulatory Act("PURA") in the Texas Utilities Code; and WHEREAS,the City is a member of the Coalition of Cities("Coalition")in this CenterPoint electric base rate proceeding, as approved by resolution 2019-07 by City Council on May 13, 2019; and WHEREAS, the New Rates would affect rates, operations or services for CenterPoint retail customers within the City; and WHEREAS,on May 10, 2019,City Council adopted Ordinance No. 2019-3738 suspending the effective date of the New Rates until August 8, 2019 (the"Suspension Period"); and WHEREAS,during the Suspension Period,the City participated as part of the Houston Coalition of Cities ("Coalition")with other cities in the CenterPoint rate case proceedings at the Public Utility Commission of Texas ("PUC") related to rates for CenterPoint's unincorporated area (environs) customers and gathered information from CenterPoint; and WHEREAS,on La Porte City Council held a public hearing("Public Hearing") regarding CenterPoint's Application on July 22, 2019; and WHEREAS,the expert utility rate consultants retained to review CenterPoint's New Rates on behalf of the Coalition have concluded that CenterPoint has not yet demonstrated through its application and testimony that its New Rates are just and reasonable,non-discriminatory and in compliance with all applicable law; and WHEREAS, City Council determines that CenterPoint's rates in effect as of April 5, 2019, ("Current Rates")are the just and reasonable rates to be observed and to remain in force within the City; and WHEREAS, City Council anticipates that a denial of the New Rates will be appealed to the PUC; and WHEREAS,denial of the New Rates would maintain the Current Rates in effect for customers within La Porte,Texas until further changed under the Utilities Code; and