HomeMy WebLinkAboutResolution No. R2022-14 RESOLUTION NO. R2022-14
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
FRIENDSWOOD, TEXAS, DENYING THE APPLICATION OF
CENTERPOINT ENERGY HOUSTON ELECTRIC, LLC,FOR APPROVAL 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 THE
COMPANY; REQUIRING NOTICE OF THIS RESOLUTION TO THE
COMPANY AND LEGAL COUNSEL; AND PROVIDING FOR AN
EFFECTIVE DATE.
WHEREAS, the City of Friendswood, Texas ("City") is an electric utility customer of
CenterPoint Energy Houston Electric, LLC ("CenterPoint" or "Company"), 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, 2022, 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 Total DCRF Revenue Requirement $198,422,017 to be effective on
September 1, 2022; and
WHEREAS, 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 the Company's application; and
WHEREAS, the GCCC's members and attorneys recommend that GCCC members deny
the DCRF; NOW THEREFORE,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FRIENDSWOOD,
STATE OF TEXAS:
Section 1. 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 2. That the Company shall continue to charge its existing rates to customers
within the City.
Section 3. 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 4. That a copy of this resolution shall be sent 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., P.O. Box 1725,Austin, Texas 78767-1725.
Section 5. That this resolution shall be effective immediately upon its passage and
approval.
PASSED, APPROVED and ADOPTED by the affirmative vote of the City Council of the
City of Friendswood on this the 2nd day of May, 202 .
F EM Mayor
ATTEST:
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LETICIA BRYSCH, City c tary pF
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APPROVED AS TO F
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KAREN HORNER, City Attorney
HACity Council\Resolutions\2022\05-02-2022\Denial Resolution-2022 CenterPoint DCRF.docx
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