HomeMy WebLinkAboutRes 2017-06 Denying the application of CenterPoint Engergy to amend DCRFCity of West University Place
Harris County, Texas
RESOLUTION NO. 2017 -06
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST
UNIVERSITY PLACE, TEXAS, DENYING THE APPLICATION OF CENTERPOINT
ENERGY HOUSTON ELECTRIC, LLC, FOR APPROVAL TO AMEND ITS
DISTRIBUTION COST RECOVERY FACTOR FILED WITH WEST UNIVERSITY
PLACE, TEXAS ON OR ABOUT APRIL 6, 2017; CONTAINING FINDINGS AND
PROVISIONS RELATED TO THE FOREGOING SUBJECT.
WHEREAS, on or about April 6, 2017, CenterPoint Energy Houston Electric, LLC
( "CenterPoint ") filed an Application for Approval to Amend its Distribution Cost Recovery
Factor ( "DCRF ") with 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 filed a second application to implement a distribution
cost recovery factor in 2016 to recover $60,596,164 per year due to changes to capital
investment in its distribution system and the Public Utility Commission approved $45
million of the requested amount ( "2016 DCRF "); and
WHEREAS, CenterPoint's DCRF filed this year amends its 2016 DCRF amount
of $45 million to request $92,508,153 per year; and
WHEREAS, CenterPoint proposes to refund approximately $1.7 million plus
interest for over - recovery in the 2015 DCRF and $1.2 million plus interest in over -
recovery for the 2016 DCRF, resulting in $89,560,854 revenue requirement for
September 1, 2017 to August 31, 2018; and
WHEREAS, the deadline for acting on CenterPoint's DCRF application is June 5,
2017; and
WHEREAS, the City is a member of the Houston Coalition of Cities ( "Coalition ")
in this DCRF proceeding, as approved by Resolution No. 2016 -03 by City Council
on May 23, 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
$89,560.85 it is seeking to recover through a DCRF rider for investments incurred since
CenterPoint's last comprehensive base rate case; and
Res. No. 2017 -06 Page 1 of 3
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;
BE IT RESOLVED 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
Resolution 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 resolution 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 resolution 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
resolution 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 resolution 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
Law, 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 resolution 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 this Resolution shall take effect immediately upon its passage
and approval.
Res. No. 2017 -06 Page 2 of 3
ROVED AND ADOPTED on the 8th day of April , 2017.
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Approved as to legal form:
City Attorney
Res. No. 2017 -06 Page 3 of 3