HomeMy WebLinkAboutResolution No. 2016-22 i
RESOLUTION NO. R2016-22
A RESOLUTION OF THE CITY OF FRIENDSWOOD,
TEXAS,' SUSPENDING THE DECEMBER 21, 20169
EFFECTIVE DATE OF THE STATEMENT OF INTENT OF
CENTERPOINT ENERGY TO INCREASE RATES WITHIN
THE HOUSTON AND TEXAS COAST DIVISIONS AND
CONSOLIDATE THE HOUSTON AND TEXAS COAST
DIVISIONS TO PERMIT THE CITY TIME TO STUDY THE
REQUEST AND TO ESTABLISH REASONABLE RATES;
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FINDING THAT THE CITY'S REASONABLE RATE CASE
EXPENSES SHALL BE REIMBURSED BY THE
COMPANY; AUTHORIZING PARTICIPATION WITH THE
GULF COAST COALITION OF CITIES; HIRING LEGAL
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AND CONSULTING SERVICES TO NEGOTIATE WITH
THE COMPANY AND DIRECT ANY NECESSARY
LITIGATION AND APPEALS; 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, on or about November 16, 2016, CenterPoint Energy Resources d/b/a
CenterPoint Energy Entex and CenterPoint Energy Texas Gas ("CenterPoint" or "Company")
filed with the City of Friendswood, Texas ("City") and the other affected municipalities a
Statement of Intent seeking to increase gas utility rates within the incorporated areas of the
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Houston Division and Texas Coast Division effective December 21, 2016; and
WHEREAS, CenterPoint is also requesting consolidation of the Houston and Texas
Coast Divisions into a single Texas Gulf Division, effective December 21, 2016;
WHEREAS, the City is a gas utility customer of CenterPoint and a regulatory authority i
with an interest in the rates and charges of CenterPoint; and
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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 gas issues affecting rates charged in CenterPoint's service area; 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.
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 City is authorized to protect the interests of the City and protect the
interests of CenterPoint customers residing and conducting business within municipal limits.
Section 3. That the December 21, 2016 effective date of the request to increase rates
submitted by CenterPoint on or about November 16, 2016, be suspended for the maximum
period allowed by law to permit adequate time to review the proposed changes and to establish
reasonable rates.
Section 4. That the City has previously adopted a resolution authorizing membership in
the Gulf Coast Coalition of Cities and intervention in ratemaking proceedings.
Section 5. That the City, subject to the right to terminate employment at any time,
hereby authorizes the hiring of Thomas Brocato of the law firm of Lloyd Gosselink Rochelle and
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Townsend, P.C., Karl. J. Nalepa of the consulting firm of Resolved Energy Consulting, L.L.C.,
and Connie Cannady of the consulting firm of New Gen Strategies to review the Company's
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filing, negotiate with the Company, make recommendations regarding reasonable rates and to �
direct any necessary administrative proceedings or court litigation associated with an appeal of
the filing.
Section 6. That as a member of GCCC, the City shall work 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 the Central Texas region.
Section 7. That the City's reasonable rate case expenses shall be reimbursed in full by
CenterPoint.
Section 8. 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 9. That a copy of this Resolution shall be sent to Thomas Stevens, Director of
Regulatory Affairs, CenterPoint Energy, P. O. Box 2628, Houston, Texas 77252-2628 and to
Thomas Brocato, General Counsel for the GCCC, at Lloyd Gosselink Rochelle & Townsend,
P.C., 816 Congress Avenue, Suite 1900, Austin, Texas 78701.
Section 10. That this Resolution shall be and become effective from and after its
adoption.
PASSED,APPROVED,AND ADOPTED this the 5th day of December,2016.
Kevin M. Holland
Mayor
ATTEST: i��rwywry
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Melinda Welsh, TRMC
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City Secretary
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