Ordinance No. 2023-27ORDINANCE NO. 2023-27
ORDINANCE OF THE CITY OF HUNTSVILLE, TEXAS AUTHORIZING THE SUSPENSION OF THE EFFECTIVE DATE FOR AN ADDITIONAL NINETY (90) DAYS BEYOND THE EFFECTIVE DATE PROPOSED BY CENTERPOINT IN CONNECTION
WITH ITS STATEMENT OF INTENT TO INCREASE RATES IN THE TEXAS DIVISION, FILED ON OCTOBER 30, 2023; 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 IHA T 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 October 30, 2023, CenterPoint Energy Resources Corp. d/b/a CenterPoint Energy Entex and CenterPoint Energy Texas Gas ("CenterPoint" or "Company") filed a Statement
oflntent with the City of Huntsville ("City") to increase gas rates in its Houston, Texas Coast, South Texas, and Beaumont/East Texas Division Service Areas by $37.4 million per year,
effective December 4, 2023; and
WHEREAS, CenterPoint's statement of intent includes a request to consolidate the Houston, Texas Coast, South Texas, and Beaumont/East Texas Divisions into a single Texas Division; and
WHEREAS, City has exclusive original jurisdiction over the rates. operations and services of a gas utility in areas in the municipality pursuant to Texas Utilities Code § 103.001; and
WHEREAS, Texas Utilities Code § 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 Texas Utilities Code § 103.022; and
WHEREAS, Texas Utilities Code § 104.107(a){l) authorizes a local regulatory authority to suspend a utility's proposed rate change for not longer than 90 days after the date the rate
change would otherwise be effective; 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 March 3, 2024, to allow the City's rate expe11s sufficient time to determine the merits of CenterPoint's proposed rates and
WHEREAS, to maximize the efficient use of resources and expertise in reviewing, analyzing, and investigating CenterPoint's $37.4 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.
NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF HUNTSVILLE, TEXAS, IHAT:
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 effective date of CenterPoint's proposed rate increase, and the proposed tariffs related thereto, is hereby suspended for an additional ninety (90) days until March 3,
2024, 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 infonnation from CenterPoint through the service of requests for infom1ation, 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 ordinance was approved was in all things conducted in strict compliance with the Texas Open Meetings Act. Texas Government Code, Chapter 551.
Section 9. This ordinance shall become effective from and after its passage. PASSED AND APPROVED this 21st day of November 2023.
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