HomeMy WebLinkAboutRes 2022-05 Denying Application of CenterPoint for Approval to Amend Distribution Cost Recovery FactorCity of West University Place, Texas
Resolution No. 2022-05
A RESOLUTION 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 APRIL 5,
2022; CONTAINING FINDINGS AND PROVISIONS RELATED TO THE FOREGOING
SUBJECT.
WHEREAS, on or about April 5, 2022, 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 rates under the DCRF rider;
and
WHEREAS, CenterPoint filed an application to implement a distribution cost
recovery factor in 2018 for annual revenue requirement of $82,620,101 and the Public
Utility Commission approved $42,400,049 million of the requested amount ("2018
DCRF"); and
WHEREAS, CenterPoint's DCRF filed this year amends its 2018 DCRF amount of
$42 million to a total annual revenue requirement of $198,422,017; and
WHEREAS, after adjusting for load growth, CenterPoint requests an annual
revenue requirement of $145,680,810; and
WHEREAS, the deadline for acting on CenterPoint's DCRF application is June 4,
2022 and the effective date of CenterPoint's amended DCRF rider is September 1, 2022;
and
WHEREAS, the City is a member of the Houston Coalition of Cities ("Coalition") in
this DCRF proceeding, as approved by Resolution of the City Council; and
WHEREAS, the expert utility rate consultant retained to review CenterPoint's
DCRF application on behalf of the Coalition has not yet determined that CenterPoint has
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
Resolution.
Section 2. That the City of West University Place, Texas hereby denies
CenterPoint's Application for Approval to Amend Its Distribution Cost Recovery Factor
(DCRF) rider and the ensuing rate increase.
Section 3. That CenterPoint's 2022 Amendment to its Distribution Cost
Recovery Factor application on file with the City is denied in total.
Section 4. That this Resolution shall take effect immediately upon its passage
and approval.
PASSED, APPROVED, AND ADOPTED this 25th day of April, 2022.
Susan V a ple, a r
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® Thelma A. Gilliam—,Uy S cretary