RES 1416 01/04/2011 O f' C
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RESOLUTION NO. _ 1416
A RESOLUTION OF THE CITY OF CIBOLO ("CITY")
DENYING THE RATE INCREASE PROPOSED BY THE
CENTERPOINT ENERGY RESOURCES CORP., D/B/A
CENTERPOINT ENERGY ENTEX AND CENTERPOINT
ENERGY TEXAS GAS; REQUIRING THE
REIMBURSEMENT OF MUNICIPAL RATE CASE
EXPENSES; 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 Corp., 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 December 3, 2010 to increase
its system-wide, annual revenue requirement, by approximately $6.5 million,
residential base rates by 6.3%n and the customer charge for residential customers by
over 50%; and
WHEREAS, CenterPoint proposed an effective date of January 7, 2011 for
its rate increase, so the City must act by that date or the proposed rates will go into
effect without being reviewed; and
WHEREAS, the City, acting in concert with other cities known as the
Alliance of CenterPoint Municipalities ("ACM"), has been organized to review the
reasonableness of rates and services provided by CenterPoint and the coalition of
cities participated in the last rate request of CenterPoint Energy Entex for this
region; and
WHEREAS, CenterPoint's rate request consists of hundreds of pages of
documentation, including testimony, exhibits, schedules and proposed tariffs, all of
a highly complex nature; and
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, in this instance, a thorough and more expeditious review of
CenterPoint's application to increase rates and other aspects of CenterPoint's
proposed tariffs is better accomplished in a consolidated fashion, which can best be
accomplished by denial of CenterPoint's requested increase in rates;
WHEREAS, it is expected that CenterPoint will appeal the City's denial of
the rate increase to the Railroad Commission to be joined with CenterPoint's
requested increase in rates for the cities who gave up original jurisdiction and the
environs areas, 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 at the Railroad Commission in GUD Docket No. 10038.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF CIBOLO, TEXAS THAT:
Section I. 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 increase in rates is hereby DENIED.
Section 3. The City is a participant in a coalition of cities known as the Alliance
of CenterPoint Municipalities 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
Section 4. The City hereby orders CenterPoint to pay 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 to related proceedings involving CenterPoint before the City, the
Railroad Commission of Texas, or any court of law.
Section 5. Subject to the right to terminate employment at any time, the City
retains and authorizes the law firm of Herrera & Boyle, 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 6. A copy of this resolution shall be sent to Mr. Alfred R. Herrera,
Herrera & Boyle, PLLC, 816 Congress Ave., Suite 1250, Austin Texas 78701 and
to the local CenterPoint Energy Entex representative.
Section 7. 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 8. This resolution shall become effective from and after its passage.
PASSED AND APPROVED this 4th day of January, 2011.
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Jennif r Hartman, Mayor
ATTEST:
l..e�gy
Peggy Cimics, City Secretary