HomeMy WebLinkAboutResolution No. R2023-15RESOLUTION NO. R2023-15
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FRIENDSWOOD,
TEXAS, DENYING CENTERPOINT ENERGY HOUSTON ELECTRIC, LLC'S
APPLICATION TO AMEND ITS DISTRIBUTION COST RECOVERY FACTOR TO
INCREASE DISTRIBUTION RATES WITHIN THE CITY; FINDING THAT THE
CITY'S REASONABLE RATE CASE EXPENSES SHALL BE REIMBURSED BY
CENTERPOINT ENERGY HOUSTON ELECTRIC, LLC; REQUIRING NOTICE OF
THIS RESOLUTION BE SENT TO THE CENTERPOINT ENERGY HOUSTON
ELECTRIC, LLC, AND TO LEGAL COUNSEL; AND PROVIDING FOR AN
EFFECTIVE DATE.
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WHEREAS, the City of Friendswood ("City") is an elechic utility customer of CenterPoint
Energy Houston Electric, LLC ("CenterPoint"), and a regulatory authority with an interest in the rates and
charges of CenterPoint; and
WHEREAS, the City is a member of the Gulf Coast Coalition of Cities ("GCCC") (such
participating cities are referred to herein as "GCCC"), a coalition of similarly situated cities served by
CenterPoint that have joined together to efficiently and cost effectively review and respond to electric
issues affecting rates charged in CenterPoint's service area; and
WHEREAS, on or about April 5, 2023, CenterPoint filed with the City an Application for
Approval to Amend its Distribution Cost Recovery Factor ("DCRF") pursuant to 16 Tex. Admin. Code
§25.243 seeking a total DCRF Revenue Requirement of $162,548,833, which is a $84,571,868 increase to
the CenterPoint's Revenue Requirement approved in its most recent DCRF proceeding, Public Utility
Commission Docket No. 53442; and
WHEREAS, all electric utility customers residing in the City will be impacted by this ratemaking
proceeding if it is granted; and
WHEREAS, GCCC is coordinating its review of CenterPoint's DCRF filing with designated
attorneys and consultants to resolve issues in CenterPoint's application; and
WHEREAS, the GCCC's members and attorneys recommend that GCCC members deny the
DCRF; NOW THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FRIENDSWOOD, STATE
OF TEXAS:
Section 1. That all matters and facts set forth in the recitals hereinabove are found to be true by
the City Council of the City of Friendswood.
Section 2. That the rates proposed by CenterPoint to be recovered through its DCRF charged to
customers located within the City limits are hereby found to be unreasonable and are hereby denied.
Section 3. That CenterPoint shall continue to charge its existing rates to customers within the
City.
Section 4. That the City's reasonable rate case expenses shall be reimbursed in full by
CenterPoint within 30 days of presentation of an invoice to CenterPoint.
Section 5. That the City Secretary is hereby directed to send a copy of this resolution to Denise
Gaw, CenterPoint Energy Service Company, LLC, I I I I Louisiana Street, Houston, Texas 77002 and to
Thomas Brocato, General Counsel to the Gulf Coast Coalition of Cities, at Lloyd Gosselink Rochelle &
Townsend, P.C., 816 Congress Avenue, Suite 1900, Austin, Texas 78701 or tbrocato@lglawfirm.com.
Section 6. This resolution shall take effect immediately from and after its adoption by the Ciry
Council of the City of Friendswood.
PASSED, APPROVED and ADOPTED by the affirmative vote of the City Council of the City of
Friendswood on this the 1" day of May, 2023.
BRYSCH,Ciry
APPROVED AS TO FORM:
KAREN L. HORNER, City Attorney
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H:\City CouncilUtesolutions\2023\OS-01-2023Vtesolulion -Denying CenterPoint 2023 DCRF.doc