ORD 2013-01 - Denying Centerpoint Energy rate increaseORDINANCE NO. 2013-01
AN ORDINANCE BY THE CITY OF HUNTSVILLE, TEXAS ("CITY") DENYING THE
RATES OF CENTERPOINT ENERGY RESOURCES CORP. FILED IN CENTERPOINT
ENERGY RESOURCES CORP.'S RATE PROCEEDING I1vITIATED ON JULY 2, 2012;
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 to increase gas rates in the service area of the Beaumont/East Texas Division of CenterPoint by $8.6
million per year; and
WHEREAS, the City of Huntsville suspended the effective date of CenterPoint's rates within its
jurisdictional limits until at least November 4, 2012 and hired the Lawton Law Firm, P.C. to review the
Company's rate change request and proposed tariffs;
WHEREAS, CenterPoint requested an overall base rate increase of $8.6 million dollars, consisting of
a rate increase to residential customers of $8.2 million, and a rate increase of $0.9 million to small general
service customers, and a rate decrease of ($0.5) million to large volume general service customers;
WHEREAS, CenterPoint's rate filing request proposes to increase the residential customer charge
from an approximate charge of $12.25 per month to $20.25 per month. Overall, revenues from all customer
classes proposed to be charged directly to customers through the customer charges make up 89.48 % of the
Company's total requested revenues--$48,271,035 million out of the Company's total requested $53,943,521
million revenue requirement;
WHEREAS, CenterPoint's rate filing request includes unreasonable rate increases for recovery of
employee expense and benefits, various tax expense and rate base issues, injuries and damages expense, other
various expense and investment, unsubstantiated costs allocated from afiiliate service companies, and an
excessive rate of return and profit for shareholders.
NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
HiJNTSVILLE, TEXAS, THAT:
Section 1. That the statement and findings set out in the preamble to this Ordinance are hereby
in all things approved and adopted.
Section 2. The City of Huntsville hereby denies the rate change and proposed tariff revisions
requested in CenterPoint's Statement of Intent.
Section 3. The meeting at which this Ordinance was approved was in all things conducted in
strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551.
Section 4. This ordinance shall become effective from and after its passage.
PASSED AND APPROVED on this the 16`h day of October 2012.
THE CITY OF HUNTSVILLE, TEXAS
Ma Woodwa , May r
TO FORM:
chneider, City Attorney