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RES 1586 04/14/2020 CIO 0 t v r o rCX ' S RESOLUTION NO. 8'G A RESOLUTION BY THE CITY OF CIBOLO, TEXAS, ("CITY") RESPONDING TO THE APPLICATION OF CENTERPOINT ENERGY RESOURCES CORP., SOUTH TEXAS DIVISION,TO INCREASE RATES UNDER THE GAS RELIABILITY INFRASTRUCTURE PROGRAM; SUSPENDING THE EFFECTIVE DATE OF THIS RATE APPLICATION FOR FORTY-FIVE DAYS; AUTHORIZING THE CITY TO CONTINUE TO PARTICIPATE IN A COALITION OF CITIES KNOWN AS THE "ALLIANCE OF CENTERPOINT MUNICIPALITIES;" DETERNIINING THAT THE MEETING AT WHICH THE RESOLUTION WAS ADOPTED COMPLIED WITH THE TEXAS OPEN MEETINGS ACT; MAKING SUCH OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND DECLARING AN EFFECTIVE DATE. WHEREAS, on or about March 5, 2020 CenterPoint Energy Resources Corp, South Texas Division ("CenterPoint") filed for an increase in gas utility rates under the Gas Reliability Infrastructure Program(`GRIP"),which if approved,results in an increase in the monthly customer charges as follows: Current Customer 2020"GRIP" Adjusted Percentage Rate Schedules Charge" Adjustment" Charge" Increase R-2097-I-GRIP 2020; R-2097-U-GRIP 2020 Residential $21.04 $1.55 $22.59 5.41% GSS-2097-I-GRIP 2020; GSS-2097-U-GRIP 2020 General Service Small $29.16 $3.11 $32.27 5.30% GSLV-628-GRIP-I-2020; GSLV-628-GRIP-U-2020 General Service Large Volume $126.70 $18.74 $145.44 5.62% "Charges shown are per customer per month WHEREAS, the City has a special responsibility to exercise due diligence with regard to rate increases of monopoly utilities who operate within its boundaries; and WHEREAS, the application to increase rates by CenterPoint is complex; and WHEREAS, it is necessary to suspend the effective date for the increase in rates for forty-five (45) days, so that the City can assure itself that the data and calculations in CenterPoint's rate application are correctly done and are in conformity with section 104.301 of the Gas Utility Regulatory Act; and WHEREAS, the effective date proposed by CenterPoint is May 4, 2020 but a suspension by the City will mean that the rate increase cannot go into effect prior to June 18,2020. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CIBOLO,TEXAS THAT: Section 1. That the statements and findings set out in the preamble to this resolution are hereby in all things approved and adopted. Section 2. The City suspends the requested effective date by CenterPoint for forty-five (45) days pursuant to the authority granted the City under Section 104.301 of the Texas Utilities Code. The City finds that additional time is needed in order to review the data and calculations that provide the basis for the rate increase application. Section 3. The City shall continue to act jointly with other cities that are part of a coalition of cities known as the Alliance of CenterPoint Municipalities ("ACM"). Section 4. The City authorizes the law firm of Herrera Law&Associates, PLLC,to act on its behalf in connection with CenterPoint's application to increase rates. Section 5. To the extent CenterPoint's application to increase rates under section 104.301 of the Gas Utility Regulatory Act (GURA) is considered a ratemaking proceeding, CenterPoint is ordered to reimburse the City's reasonable rate case expenses incurred in response to CenterPoint's rate increase application within 30 days of receipt of invoices for such expenses to the extent allowed by law. Section 6. A copy of this resolution shall be sent to Mr. Keith Wall, Director of Regulatory Affairs, CenterPoint Energy, 1111 Louisiana Street, CNP Tower 19th Floor, Houston, Texas 77002; and to Mr. Alfred R. Herrera, Herrera Law & Associates, PLLC, 4400 Medical Pkwy, Austin, Texas 78756. Section 7. The meeting at which this resolution was approved was in all things conducted in compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551. Section 8. This resolution shall be effective immediately upon passage. PASSED AND APPROVED this 14th day of April, 2020. Stosh Boyle ayor ATTEST: Peggy Cimics, City Secretary 2 of 2