HomeMy WebLinkAboutResolution No. 2011-17 RESOLUTION NO. R20ll-17
A RESOLUTION OF THE CITY OF FRIENDSWOOD,
TEXAS FINDING THAT CENTERPOINT ENERGY
ENTEX'S ("CENTERPOINT'S" OR "COMPANY"S") COST
OF SERVICE ADJUSTMENT ("COSA") FILING; WITHIN
THE CITY SHOULD BE DENIED; FINDING THAT THE
CITY'S REASONABLE RATE CASE EXPENSES 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; REQUIRING NOTICE OF THIS RESOLUTION TO
THE COMPANY AND LEGAL COUNSEL.
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WHEREAS, the City of Friendswood, Texas ("City") is a gas utility customer of
CenterPoint Energy Entex, Texas Coast Division ("CenterPoint" or "Company"), and a
regulatary 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 facilitate the review and response to natural
gas issues affecting rates charged in the CenterPoint's Texas Coast Division service area;
WHEREAS, pursuant to the terms of the agreement settling the Company's 2008
Statement of Intent to increase rates, GCCC and the Company worked collaboratively to develop
the COSA tariff that allows for an expedited rate review process controlled in a three-year
experiment by GCCC as a substitute to the current GRIP process instituted by the Legislature;
and
WHEREAS, the City took action in 2008 to approve a Settlement Agreement with
CenterPoint resolving the Company's 2008 rate case and authorizing the COSA tariff; and
WHEREAS, the 2008 Settlement Agreement contemplates reimbursement of GCCC
reasonable expenses associated with COSA applications; and
WHEREAS, on or about April 29, 2011, CenterPoint filed with the City a COSA tariff
seeking to increase natural gas rates to all customers residing in the City by $914,910 per year;
and
WHEREAS, GCCC coordinated its review of CenterPoint's COSA filing and designated
attorneys and consultants to resolve issues in the Company's COSA filing; and
WHEREAS, through review of the application and discovery, GCCC's consultants
determined that CenterPoint's existing rates are excessive; and
WHEREAS, under the 2008 Settlement Agreement the City retains its rights as a city
with original jurisdiction including the right to deny the application, and
WHEREAS, the GCCC's members and attorneys recommend that GCCC members deny
the COSA application; and
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE
CITY OF FRIENDSWOOD, TEXAS:
Section 1. That the COSA rates proposed by CenterPoint to be recovered through its
gas rates charged to customers located within the City limits, are hereby found to be
unreasonable and shall be denied.
Section 2. That the Company shall continue to charge its existing rates to customers
within the City.
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Section 3. That the City's reasonable rate case expenses shall be reimbursed in full
by CenterPoint within 30 days of the adoption of this Resolution. Under no circumstances shall
the City of Friendswood be responsible to Lloyd Gosselink Rochelle and Townsend, P.C., or
consultants hired by Lloyd Gosselink Rochelle and Townsend, P.C., for any expenses resulting
from this case.
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 a copy of this Resolution shall be sent to CenterPoint and to Thomas
Brocato, General Counsel to the Gulf Coast Caalition of Cities, at Lloyd Gosselink Rochelle &
Townsend, P.C., P.O. Box 1725, Austin, Texas 78767-1725.
PASSED,APPROVED, AND RESOLVED, this the ZSt" day of Julv,2011.
David J.H. Smith
Mayor
ATTEST:
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Melinda Welsh, TRMC * *
City Secretary
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