HomeMy WebLinkAboutPO 7211: CENTERPOINT P.O. No. 7211
11/8/2023 gt
ORDINANCE NO.
AN ORDINANCE OF THE CITY OF PORT ARTHUR, 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 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 October 30, 2023, 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 Port
Arthur ("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
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WHEREAS, Texas Utilities Code § 104.107(a)(1) 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 experts 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 PORT ARTHUR, TEXAS:
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. That 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. That 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. That 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. That the Steering Committee shall review the invoices of the
lawyers and rate experts for reasonableness before submitting the invoices to
CenterPoint for reimbursement.
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Section 6. That the 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. That 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. That 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. That this ordinance shall become effective from and after its
passage.
READ, ADOPTED AND APPROVED on this day of November A.D.,
2023, at a Meeting of the City Council of the City of Port Arthur, by the following
vote: AYES:
Mayor: ,
Councilmembers:
NOES:
Thurman Bill Bartie, Mayor
ATTEST:
Sherri Bellard, City Secretary
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APPROVED AS TO FORM:
Valecia Tizeno, Cit f)Attorney
APPROVED FOR ADMINISTRATION:
Ronald Burton, City Manager
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