HomeMy WebLinkAboutORD 2018 Denying CenterPoint ApplicationCity of West University Place
Harris County, Texas
Ordinance No. 2018
AN ORDINANCE DENYING THE APPLICATION OF CENTERPOINT ENERGY
HOUSTON ELECTRIC, LLC, FOR APPROVAL TO AMEND ITS DISTRIBUTION
COST RECOVERY FACTOR FILED WITH CITY OF WEST UNIVERSITY PLACE,
TEXAS ON OR ABOUT APRIL 4,2016; CONTAINING FINDINGS AND PROVISIONS
RELATED TO THE FOREGOING SUBJECT.
WHEREAS, on or about April 4, 2016, CenterPoint Energy Houston Electric, LLC
( "CenterPoint ") filed an Application for Approval to Amend its Distribution Cost Recovery
Factor ( "DCRF ") with the City of West University Place, Texas ( "City ") pursuant to
Section 36.210 of the Texas Public Utility Regulatory Act ( "PURA ") to increase electric
rates; and
WHEREAS, CenterPoint filed an application to implement a distribution cost
recovery factor in 2015 to recover $16,704,985 per year due to changes to capital
investment in its distribution system and the Public Utility Commission approved $13
million of the requested amount ( "2015 DCRF "); and
WHEREAS, CenterPoint's DCRF filed this year amends its 2015 DCRF amount
of $13 million to request $60,596,164 per year; and
WHEREAS, CenterPoint advises that there was an accounting error in its 2015
DCRF that resulted in a $11.2 million overcharge that will be refunded through this
DCRF; and
WHEREAS, the deadline for acting on CenterPoint's DCRF application is June 3,
2016 and the effective date of CenterPoint's amended DCRF rider is September 1,
2016; and
WHEREAS, the expert utility rate consultants retained to review CenterPoint's
DCRF application on behalf of the Coalition ( "consultant ") have issued a preliminary
assessment and concluded that CenterPoint has not yet demonstrated through its
application and testimony that its present earnings are not sufficient to fund the $60.5
million it is seeking to recover through a DCRF rider for investments incurred since
CenterPoint's last comprehensive base rate case; and
WHEREAS, the consultants have not had sufficient time to determine whether
the proposed refund is the correct amount or that the proposed refund mechanism and
interest rate are appropriate; and
WHEREAS, the consultants have further determined that CenterPoint has not yet
established that the costs it seeks to recover are eligible for recovery through a DCRF
rider pursuant to PURA; and
WHEREAS, City Council finds that it is in the best interests of the ratepayers
served by CenterPoint within the City that the DCRF application be denied. NOW
THEREFORE;
(00180445.D0CX2 )
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF WEST
UNIVERSITY PLACE, TEXAS:
Section 1. That the statements and findings set out in the preamble to this
Ordinance are determined to be true and correct and are hereby adopted as part of this
Ordinance.
Section 2. That the City of West University Place, Texas hereby denies
CenterPoint's Application for Approval to Amend Its Distribution Cost Recovery Factor
rider and the ensuing rate increase.
Section 3. That CenterPoint's Amendment to its Distribution Cost Recovery
Factor application on file with the City is denied in total.
Section 4. That if any provision, section, subsection, sentence, clause or phrase
of this ordinance or the application of same to any person or set of circumstances is for
any reason held to be unconstitutional, void or invalid, the validity of the remaining
portions of this ordinance or their application to other persons of sets of circumstances
shall not be affected thereby, it being the intent of the City Council in adopting this
ordinance that no portion hereof or provision or regulation contained herein shall
become inoperative or fail by reason of any unconstitutionality, voidness, or invalidity of
any other portion hereof, and all provisions of this ordinance are declared to be
severable for that purpose.
Section 5. That the City Council officially finds, determines, recites and declares
that a sufficient written notice of the date, hour, place and subject of this meeting of the
City Council was posted at a place convenient to the public at the City Hall of the City
for the time required by law preceding this meeting, as required by the Open Meetings
Act, Tex. Gov't. Code Ann., ch.551 (Vernon 2004 & Supp. 2005); and that this meeting
was open to the public as required by law at all times during which this ordinance and
the subject matter thereof have been discussed, formally considered and formally acted
upon. The City Council further ratifies, approves and confirms such written notice and
the contents and posting thereof.
Section 6. That the City Council of the City finds that an emergency exists
such that the requirement for two readings of ordinances is hereby waived and that this
Ordinance shall take effect immediately upon its passage and approval.
X PROVED AND ADOPTED on the 23d da of Ma y �! , 2016
Signed: etary (Seal) May
Recommended: Approved as to legal form:
City Manager City Attorney
100180445.DOCX2 )