Res 1654 11/14/2023 Denying the statement of intent to change reates filled on or about Oct. 30, 2023 by Centerpoint Energy Resources Corp."City of Choice"
RESOLUTION NO. 1654
RESOLUTION BY THE CITY OF CHIOLO, TEXAS ("CITY") DENYING
THE STATEMENT OF INTENT TO CHANGE RATES FILED ON OR
ABOUT OCTOBER 30, 2023 BY CENTERPOINT ENERGY RESOURCES
CORPORATION, DB/A, CENTERPOINT ENERGY ENTEX AND
CENTERPOINT ENERGY TEXAS GAS; AUTHORIZING CONTINUED
PARTICIPATION IN THE ALLIANCE OF CENTERPOINT
MUNICIPALITIES; AUTHORIZING INTERVENTION IN
PROCEEDINGS RELATED TO CENTERPOINT'S STATEMENT OF
INTENT; REQUIRING THE REIMBURSEMENT OF MUNICIPAL RATE
CASE EXPENSES; AUTHORIZING REPRESENTATION OF THE CITY
BY SPECIAL COUNSEL; FINDING THAT THE MEETING COMPLIES
WITH THE OPEN MEETINGS ACT; MAKING OTHER FINDINGS AND
PROVISIONS RELATED TO THE SUBJECT
WHEREAS, CenterPoint Energy Resources Corporation, DB/A, CenterPoint Energy
Entex and CenterPoint Energy Texas Gas ("CenterPoint" or "Company") filed a Statement of
Intent with the City on or about October 30, 2023, to change its rate schedules within the corporate
limits of this municipality, specifically to increase its system -wide, annual revenue requirement by
approximately $37.4 million; and
WHEREAS, the City is a regulatory authority under the Gas Utility Regulatory Act
("GURA') and under Chapter 104, §103.001 et seq. of GURA has exclusive original jurisdiction
over CenterPoint's rates, operations, and services within the municipality; and
WHEREAS, in order to maximize the efficient use of resources and expertise in reviewing,
analyzing and investigating CenterPoint's rate request and its changes in tariffs it is prudent to
coordinate the City's efforts with a coalition of similarly situated municipalities; and
WHEREAS, the City, in matters regarding applications by CenterPoint to change rates,
has in the past joined with other local regulatory authorities to form the Alliance of CenterPoint
Texas Municipalities-Beaumont/East Texas Division ("ACM"), and hereby continues its
participation in ACM; and
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WHEREAS, CenterPoint's rate request consists of a voluminous amount of information
including CenterPoint's rate -filing package, pre -filed direct testimony, exhibits, schedules, and
workpapers; and
WHEREAS, CenterPoint proposes to implement its proposed increase in rates on or about
December 4, 2023, and
WHEREAS, CenterPoint's application fails to establish that its overall revenue request
resulted in no more than an amount that will permit CenterPoint a reasonable opportunity to earn
a reasonable return on the utility's invested capital used and useful in providing service to the
public in excess of its reasonable and necessary operating expenses; and
WHEREAS, CenterPoint's application fails to establish that its proposed rates are just and
reasonable; and
WHEREAS, CenterPoint may exercise its statutory right to appeal a City decision
regarding CenterPoint's request to increase rates to the Railroad Commission of Texas; and
WHEREAS, CenterPoint filed its Statement of Intent to increase its revenue and change
its rate with the City and with the Railroad Commission of Texas on the same date, October 30,
2023, and it is important to intervene in the proceedings before the Railroad Commission of Texas
because the Railroad Commission's decisions will impact rates within the City;
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
CIBOLO, TEXAS THAT:
Section 1
The findings set out in the preamble are in all things approved and incorporated herein as if fully
set forth.
Section 2
CenterPoint's application fails to show that its proposed rates are just and reasonable.
Section 3
The City hereby DENIES CenterPoint's request to increase its revenue and change its rates and in
support of DENIAL finds that:
A. CenterPoint failed in its burden of proof to establish that its requested increase in
revenue or the changes set forth in its tariffs attached to CenterPoint's Statement of
Intent to change rates, results in just and reasonable rates;
B. CenterPoint failed in its burden of proof to establish that adoption of its proposed rate
base, expenses, investment, return on equity, and other rate issues as presented in
CenterPoint's Statement of Intent to increase rates, result in just and reasonable rates.
Section 4
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ACM -South Texas
The City authorizes intervention in proceedings related to CenterPoint's Statement of Intent before
the Railroad Commission of Texas and any related proceedings in any courts of law.
Section 5
The City continues its participation with other cities in a coalition of cities known as the Alliance
of CenterPoint Municipalities ("ACM") with the understanding that the Steering Committee of
ACM is to provide direction and guidance to Special Counsel representing said cities.
Section 6
The City hereby retains Herrera Law & Associates, PLLC as Special Counsel to represent the City
with regard to CenterPoint's Statement of Intent and related proceedings, including proceedings
before local and state regulatory authorities and any court of law and authorizes Special Counsel
to employ such rate experts as may be necessary for review and evaluation of CenterPoint's
Statement of Intent.
Section 7
The City, in coordination with the ACM Steering Committee, shall review the invoices of the
lawyers and rate experts for reasonableness before submitting the invoices to CenterPoint for
reimbursement.
Section 8
The City hereby orders CenterPoint to reimburse the City's rate case expenses as provided in the
Gas Utility Regulatory Act and that CenterPoint shall continue to do so on a monthly basis and
within 30 days after submission of the City's invoices for the City's reasonable costs associated
with the City's activities related to this rate review or to related proceedings involving CenterPoint
before the City, the Railroad Commission of Texas, or any court of law.
Section 9
A copy of this resolution shall be sent to Mr. Alfred R. Herrera, Herrera Law & Associates, PLLC,
4400 Medical Parkway, Austin, Texas 78756, and a courtesy copy to Mr. Patrick Peters, VP —
Regulatory Legal, AGC, CenterPoint Energy, Inc., 1005 Congress Ave., Suite 650, Austin Texas
78701.
Section 10
The meeting at which this resolution was approved was in all things conducted in strict compliance
with the Texas Open Meetings Act, Texas Government Code, Chapter 551.
Section 11
This resolution supersedes any prior inconsistent or conflicting resolution or ordinance.
Section 12
This resolution shall become effective from and after its passage.
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ACM -South Texas
PASSED AND APPROVED this 14"' day of November, 2023.
ATTEST:
Peggy Cimics, TRMC
City Secretary
Mayor
MUCH
ACM -South Texas