HomeMy WebLinkAboutResolution No. R2023-33 RESOLUTION NO. R2023-33
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
FRIENDSWOOD, TEXAS, AUTHORIZING MEMBERSHIP IN THE "CITIES
SERVED BY CENTERPOINT GAS" COALITION FOR THE PURPOSE OF
PROTECTING THE INTEREST OF THE CITY AND ITS CITIZENS WITH
RESPECT TO CENTERPOINT MATTERS; SUSPENDING THE EFFECTIVE
DATE OF THE STATEMENT OF INTENT OF CENTERPOINT ENERGY
RESOURCES CORP., D/B/A CENTERPOINT ENERGY ENTEX AND
CENTERPOINT ENERGY TEXAS GAS TO CHANGE RATES IN THE
TEXAS DIVISION IN ORDER TO PERMIT THE CITY TIME TO STUDY
THE REQUEST, AND TO ESTABLISH REASONABLE RATES; FINDING
THAT THE CITY'S REASONABLE RATE CASE EXPENSES SHALL BE
REIMBURSED BY CENTERPOINT; HIRING LEGAL AND CONSULTING
SERVICES TO NEGOTIATE WITH CENTERPOINT AND DIRECT ANY
NECESSARY LITIGATION AND APPEALS; DIRECTING NOTICE OF THIS
RESOLUTION TO CENTERPOINT AND LEGAL COUNSEL; AND
PROVIDING FOR THE EFFECTIVE DATE THEREOF.
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WHEREAS, on or about October 30, 2023, CenterPoint Energy Resources Corp., d/b/a
CenterPoint Energy Entex and CenterPoint Energy Texas Gas ("CenterPoint") filed with the City
of Friendswood ("City") and the other affected Texas municipalities a Statement of Intent
seeking to change rates within the Texas division to be effective December 4, 2023; and
WHEREAS, the City is a regulatory authority with an interest in the rates and charges of
CenterPoint; and
WHEREAS, the Cities Served by CenterPoint Gas (the "Coalition") is a coalition of
similarly situated cities served by CenterPoint that have joined together to efficiently and cost
effectively review and respond to gas issues affecting rates charged in CenterPoint's service
area; and
WHEREAS, the Coalition has hired outside consultants to review the CenterPoint's
filing, negotiate with the CenterPoint,make recommendations regarding reasonable rates and to
direct any necessary administrative proceedings or court litigation associated with an appeal of
City action; and
WHEREAS, the Gas Utility Regulatory Act § 104.107 grants local regulatory authorities
the right to suspend the effective date of proposed rate changes for ninety (90) days; and
WHEREAS, the City retains its rights as a city with original jurisdiction including the
right to suspend the application; and
WHEREAS, the City's consultants and attorneys recommend that the City suspend the
application for further review; and
WHEREAS, CenterPoint has filed an application with the Railroad Commission that
could become the docket into which appeals of City action on the CenterPoint filing are
consolidated; and
WHEREAS, the Gas Utility Regulatory Act § 103.022 provides that costs incurred by
cities in ratemaking activities are to be reimbursed by the regulated utility;NOW THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FRIENDSWOOD,
TEXAS:
Section 1. That the findings and recitations set out in the preamble of this resolution
are found to be true and correct and are hereby adopted by the City Council and made a part
hereof for all purposes.
section 2. That the December 4, 2023, effective date of the request to increase rates
submitted by CenterPoint on or about October 30, 2023, is hereby suspended for the maximum
period allowed by law to permit adequate time to review the proposed changes and to establish
reasonable rates.
Section 3. That the City's membership in the Coalition in this proceeding is hereby
authorized.
Section 4. That subject to the right to terminate employment at any time, the
engagement of Jamie L. Mauldin of the law firm of Lloyd Gosselink Rochelle and Townsend,
P.C., Karl J. Nalepa of the consulting firm of ReSolved Energy Consulting, L.L.C., and Lane
Kollen of J. Kennedy& Associates, Inc., as well as any additional consultants deemed necessary,
to review the CenterPoint's filing, negotiate with the CenterPoint, make recommendations
regarding reasonable rates, and direct any necessary administrative proceedings or court
litigation associated with an appeal of City action is authorized.
Section 5. That the City shall work with the Coalition in the review and evaluation of
whether the proposed rates are appropriate, fair, just, and reasonable; and intervene as a
necessary party in the Railroad Commission of Texas' consideration of the CenterPoint rate filing
as it affects the customers in the unincorporated areas of CenterPoint's Texas Division.
Section 6. That the City's reasonable rate case expenses shall be reimbursed in full by
CenterPoint.
Section 7. That the City Secretary is hereby directed to send a copy of this resolution
to Keith L. Wall, CenterPoint Energy, at P.O. Box 2628, Houston, Texas 77252-2628, and to
Jamie L. Mauldin at Lloyd Gosselink Rochelle & Townsend, P.C., 816 Congress Avenue, Suite
1900, Austin, Texas 78701.
Section 8. This resolution shall take effect immediately from and after its passage by
the City Council of the City of Friendswood.
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INTRODUCED, READ and PASSED by the affirmative vote of the City Council of the
City of Friendswood this the 6th day of November i'3.
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M' FO' • ', Mayor
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LETICIA BRYSCH City Secret
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APPROVED AS TO FORM: '`
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KAREN L. HORNER, City Attorney
H:\City Council\Resolutions\2023\11-06-2023\Resolution-City Suspension of Effective Date for CenterPoint Rate Increase.doc
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