Ordinance 2016-22 - Ord. 2016-22 - Suspend CenterPoint GRIP filing & rates, 4-16 ORDINANCE NO. 2016-22
ORDINANCE OF THE CITY OF HUNTSVILLE, TEXAS, SUSPENDING THE RATES
PROPOSED BY CENTERPOINT ENERGY RESOURCES CORP., d/b/a CENTERPOINT
ENERGY ENTEX AND CENTERPOINT ENERGY TEXAS GAS ("CENTERPOINT" OR
"COMPANY") COMPANY'S GAS RELIABILITY INFRASTRUCTURE PROGRAM
("GRIP") FILING MADE WITH THE CITY ON MARCH 31, 2016; 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, the Company proposed an effective date of May 30, 2016, for the rate increase; and
WHEREAS, City has exclusive original jurisdiction over the rates, operations and services of a gas
utility in areas in the municipality pursuant to Gas Utility Regulatory Act § 103.001; and
WHEREAS, Gas Utility Regulatory Act § 104.301 requires a streamlined process for the recovery of
the costs of incremental investment by a gas utility; 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, the City will join with other municipalities in a steering committee in order to coordinate
the hiring and direction of counsel and/or consultants working on behalf of the steering committee and
the City; and
WHEREAS, the City finds the need to suspend the effective date of CenterPoint's proposed rate
increase for 45 days beyond the Company's proposed effective date until July 14, 2016 in order to
review the Company's filing for compliance with Gas Utility Regulatory Act § 104.301; and
WHEREAS, the City's review of CenterPoint's GRIP filing is limited to a ministerial review of the
filing for compliance with the statute; and
WHEREAS, the reasonableness of the Company's investment will be reviewed in CenterPoint's
subsequent base rate case where all costs included in CenterPoint's GRIP filing will be subject to
refund.
NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
HUNTSVILLE, TEXAS, THAT:
Section 1. 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 the Company's proposed GRIP rate increase, and the proposed
tariffs related thereto, are hereby suspended until July 14, 2016.
Section 3. To the extent the City finds that the rates proposed by CenterPoint's filing comply with
Gas Utility Regulatory Act § 104.301, then the rates will become effective by operation of law on July
14, 2016.
i
i
Section 4. The City is authorized to join with other municipalities as part of the Beaumont/East
Texas Division Steering Committee with the understanding that the steering committee will provide
direction and guidance to the lawyers who are representing said cities.
Section 5. 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 6. The Steering Committee shall review the invoices of the lawyers and/or rate experts for
reasonableness before submitting the invoices to CenterPoint for reimbursement.
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 the 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 19`h day of April, 2016.
CITY OF HUNTSVILLE,TEXAS
Andy Irauninger, Mayo
j
EST: APPROVED AS TO FORM:
Woodward, City Secretary od Schneider, City Attorney