HomeMy WebLinkAboutResolution No. 2008-27RESOLUTION NO. R2008-27
A RESOLUTION OF THE CITY OF FRIENDSWOOD SUSPENDING
THE APRIL 10, 2008, EFFECTIVE DATE OF CENTERPOINT
ENERGY RESOURCES CORP., DB/A CENTERPOINT ENERGY
ENTEX AND CENTERPOINT ENERGY TEXAS GAS
(CENTERPOINT) REQUESTED RATE CHANGE TO PERMIT THE
CITY TIME TO STUDY THE REQUEST AND TO ESTABLISH
REASONABLE RATES; APPROVING COOPERATION WITH THE
GULF COAST COALITION OF CITIES AND OTHER CITIES IN THE
CENTERPOINT AREA TO HIRE LEGAL AND CONSULTING
SERVICES AND TO NEGOTIATE WITH THE COMPANY AND
DIRECT ANY NECESSARY LITIGATION AND APPEALS;
RATIFYING THE SELECTION OF LLOYD GOSSELINK AS LEGAL
COUNSEL; REQUIRING REIMBURSEMENT OF CITIES' RATE
CASE EXPENSES; FINDING THAT THE MEETING AT WHICH THIS
RESOLUTION IS PASSED IS OPEN TO THE PUBLIC AS REQUIRED
BY LAW; REQUIRING NOTICE OF THIS RESOLUTION TO THE
COMPANY AND LEGAL COUNSEL.
WHEREAS, on or about March 6, 2008, CenterPoint Energy Resources Corp., d/b/a
CenterPoint Energy Entex and CenterPoint Energy Texas Gas ("CenterPoint" or "Company"),
pursuant to Gas Utility Regulatory Act § 104.102 filed with the City of Friendswood a Statement
of Intent to change gas rates in all municipalities exercising original jurisdiction within its Texas
Coast Division service area effective April 10, 2008; and
WHEREAS, it is reasonable for the City of Friendswood to maintain its involvement in
the Gulf Coast Coalition of Cities ("GCCC") and to cooperate with the other similarly situated
city members in conducting a review of the Company's application and to hire and direct legal
counsel and consultants and to prepare a common response and to negotiate with the Company
and direct any necessary litigation; 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 Gas Utility Regulatory Act § 103.022 provides that reasonable costs
incurred by Cities in ratemaking activities are to be reimbursed by the regulated utility; and
WHEREAS, on or about March 6, 2008 simultaneous with the filing with the City,
CenterPoint filed a Statement of Intent to change gas rates for the Texas Coast environs with the
Railroad Commission of Texas referred to as Gas Utility Docket ("GUD") No. 9791.
THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
FRIENDSWOOD, TEXAS:
1. That the April 10, 2008, effective date of the rate request submitted by
CenterPoint on or about Mach 6, 2008, be suspended for the maximum period allowed by law to
permit adequate time to review the proposed changes and to establish reasonable rates.
2. That the City is authorized to cooperate with GCCC and its member cities in the
Texas Coast Division service area to hire and direct legal counsel and consultants, negotiate with
the Company, make recommendations to the City regarding reasonable rates and to direct any
necessary administrative proceedings or court litigation associated with an appeal of a rate
ordinance and the rate case filed with the City or Railroad Commission.
3. That the selection of the law firm of Lloyd Gosselink to represent the GCCC and
its members in this matter is ratified.
4. That the City is authorized to intervene and paticipate in GUD No. 9791,
Statement of Intent of CenterPoint Energy Resources Corp. D/B/A CenterPoint Energy Entex
and CenterPoint Energy Texas Gas to Increase Rates in the Unincorporated Areas of
CenterPoint's Texas Coast Division, in order to protect the interests of the City.
5. That the City's reasonable rate case expenses shall be reimbursed by CenterPoint.
6. 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.
7. A copy of this Resolution shall be sent to CenterPoint, care of Denise Hardcastle,
Director of Regulatory Activities and Compliance, CenterPoint Energy, P.O. Box 2628,
Houston, Texas 77252-2528 and to Thomas Brocato, at Lloyd Gosselink, P.C., 816 Congress,
Avenue, Suite 1900, Austin, Texas 78701.
PASSED, APPROVED, and RESOLVED this 241h day of March 2008.
ATTEST:
De oris McKenzie, TRMC
City Secretary
vid J. H. Smith
Mayor
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