RESO 2012-25 - Centerpoint Rates RESOLUTION NO. 2012-25
RESOLUTION OF THE CITY OF HUNTSVILLE, TEXAS AUTHORIZING THE SUSPENSION
OF THE EFFECTIVE DATE FOR AN ADDITIONAL NINETY (90) DAYS BEYOND THE
AUGUST 6, 2012, EFFECTIVE DATE PROPOSED BY CENTERPOINT IN CONNECTION WITH
ITS RATE INCREASE APPLICATION ENTITLED "STATEMENT OF INTENT TO INCREASE
RATES FOR CENTERPOINT'S BEAUMONT/EAST TEXAS DIVISION," FILED ON JULY 2,
2012; AUTHORIZING THE HIRING OF LAWYERS AND RATE EXPERTS; AUTHORIZING
THE CITY'S PARTICIPATION TO THE FULL EXTENT PERMITTED BY LAW AT THE
RAILROAD COMMISSION OF TEXAS; REQUIRING 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, on or about July 2, 2012 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 of Huntsville ("City") to increase gas rates in the Beaumont/East Texas Division
Service Area by$8.6 million per year; and
WHEREAS, City has exclusive original jurisdiction over the rates, operations and services of a
gas utility in areas in the municipality pursuant to Tex. Util. Code §103.001; and
WHEREAS, Gas Utility Regulatory Act § 103.021 requires a local regulatory authority to
make a reasonable determination of rate base, expenses, investment and rate of return and retain the
necessary personnel to determine reasonable rates; and
WHEREAS, the City's reasonable cost for regulatory expenses in ratemaking proceedings
shall be reimbursed by the gas utility under Gas Utility Regulatory Act § 103.022; and
WHEREAS, given the complexity of the proposed rate increase and the need to fully review
the proposed rate adjustment it is necessary to suspend the effective date for implementing the
proposed rates until at least November 4, 2012 in order to allow the City's rate experts sufficient time
to determine the merits of CenterPoint's proposed rates; and
WHEREAS, in order to maximize the efficient use of resources and expertise in reviewing,
analyzing, and investigating CenterPoint's $8.6 million rate increase request, City's efforts will be
coordinated with similarly situated municipalities in CenterPoint's Beaumont/East Texas Division
Service Area; and
WHEREAS, the City will join with other municipalities in a steering committee in order to
coordinate the hiring and direction of counsel and consultants working on behalf of the steering
committee and the City; and
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
HUNTSVILLE,TEXAS,THAT:
Section 1. That the statement and findings set out in the preamble to this resolution are
hereby in all things approved and adopted.
Section 2. The effective date of CenterPoint's proposed rate increase, and the proposed
tariffs related thereto, is hereby suspended for an additional ninety (90) days until November 4, 2012
in order to complete the review and investigation by City's experts.
Section 3. The City is authorized to join with other municipalities as part of the
CenterPoint Beaumont/East Texas Division Service Area Steering Committee with the understanding
that the steering committee will provide direction and guidance to the lawyers who are representing
said cities.
Section 4. The City employs The Lawton Law Firm, P.C. to represent the City with regard
to the proposed rate increase of CenterPoint before local and state regulatory authorities and any court
of law and authorizes counsel to employ such rate experts as are recommended by the Steering
Committee.
Section 5. The Steering Committee, shall review the invoices of the lawyers and rate
experts for reasonableness before submitting the invoices to CenterPoint for reimbursement.
Section 6. City's legal representatives shall have the right to obtain additional information
from CenterPoint through the service of requests for information, which shall be responded to within
seven (7) calendar days of receipt of such requests for information.
Section 7. CenterPoint shall reimburse the City, through the designated representative of
the Steering Committee, for the reasonable costs of attorneys and consultant fees and expenses related
thereto, upon the presentation of invoices reviewed by the Steering Committee.
Section 8. 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 9. This resolution shall become effective from and after its passage.
PASSED AND APPROVED this 17th day of July 2012.
THE CITY OF HUNTSVILLE
/ /
May ac Wood and
AT EST: APPROVED AS TO FORM:
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oodward, City Secrets ,snard Sc eider, City Attorney