RES 1559 12/12/2017 OF C16
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RESOLUTION NO. 1559
RESOLUTION BY THE CITY OF CIBOLO, TEXAS ("CITY")
SUSPENDING THE EFFECTIVE DATE FOR NINETY DAYS IN
CONNECTION WITH THE RATE INCREASE FILING MADE ON
ABOUT ON NOVEMBER 16, 2017 BY CENTERPOINT ENERGY
RESOURCES CORPORATION, DB/A, CENTERPOINT ENERGY
ENTEX AND CENTERPOINT ENERGY TEXAS GAS, FOR ITS
SOUTH TEXAS DIVISION; FINDING THAT THE MEETING
COMPLIES WITH THE OPEN MEETINGS ACT; MAKING
OTHER FINDINGS AND PROVISIONS RELATED TO THE
SUBJECT; AND DECLARING AN EFFECTIVE DATE
WHEREAS, CenterPoint Energy Resources Corporation, D/B/A, CenterPoint Energy
Entex and CenterPoint Energy Texas Gas ("CenterPoint" or "Company") filed a
Statement of Intent with the City on or about November 16, 2017, to change its rate
schedules within the corporate limits of this municipality, specifically to increase its
system-wide, annual revenue requirement by approximately $1.2 million, which includes
CenterPoint's proposed 12-month surcharge; 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-South Texas Division ("ACM"), and hereby continues
its participation in ACM; and
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's rate application is the Company's first general rate case since
about 2010, and follows five interim rate adjustments CenterPoint filed since its last
general rate case, more commonly known as GRIP ("Gas Reliability Infrastructure
Program") increases in rates filed under GURA § 104.301; and
WHEREAS, because this is CenterPoint's first general rate case following its five GRIP
increases in rates, the City will need to evaluate the prudence of investments CenterPoint
made under GURA § 104.301; and
WHEREAS, CenterPoint proposed December 21, 2017, as the effective date for its
requested increase in rates; and
WHEREAS, it is not possible for the City to complete its review of CenterPoint's filing
by December 21, 2017; and
WHEREAS, the City will need an adequate amount of time to review and evaluate
CenterPoint's rate application to enable the City to adopt a final decision as a local
regulatory authority with regard to CenterPoint's requested rate increase.
WHEREAS, the City will require the assistance of specialized legal counsel and rate
experts to review the merits of CenterPoint's application to increase rates; and
WHEREAS, the decision of the Railroad Commission of Texas will have a direct impact
on the City and its citizens who are customers of CenterPoint and in order for the City's
participation to be meaningful it is important that the City promptly intervene in
proceedings pending at the Railroad Commission of Texas related to CenterPoint's
application to increase rates.
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 proposed effective date for its proposed increase in rates is
hereby SUSPENDED for ninety days beyond December 21, 2017.
Section 3. The statutory suspension period may be further extended if CenterPoint
does not provide timely and meaningful, and proper public notice of its request to
increase rates, or if its rate-filing package is materially deficient.
Section 4. The City shall participate in a coalition of cities known as the Alliance of
CenterPoint Municipalities-South Texas Division ("ACM"), and authorizes intervention
in proceedings related to CenterPoint's Statement of Intent before the Railroad
Commission of Texas and related proceedings in courts of law; and
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Section 5. 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 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
related to proceedings involving CenterPoint before the City, the Railroad Commission of
Texas, or any court of law.
Section 6. Subject to the right to terminate employment at any time, the City retains
and authorizes the law firm of Herrera Law & Associates, PLLC to act as Special
Counsel with regard to rate proceedings involving CenterPoint before the City, the
Railroad Commission of Texas, or any court of law, and to retain such experts as may be
reasonably necessary for review of CenterPoint's rate application subject to approval by
the steering committee of the ACM.
Section 7. The City, in coordination with the Steering Committee, shall review the
invoices of the lawyers and rate experts for reasonableness before submitting the invoices
to CenterPoint for reimbursement.
Section 8. A copy of this resolution shall be sent to Mr. Alfred R. Herrera, Herrera
Law & Associates, PLLC, 816 Congress Ave., Suite 950, Austin, Texas 78701, and a
courtesy copy to CenterPoint's local representative.
Section 9. 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 10. This resolution shall become effective from and after its passage.
PASSED AND APPROVED this 12th day of December, 2017.
osh Bo
Mayor
ATTEST:
Peggy Cimics, TRMC
City Secretary
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