HomeMy WebLinkAboutORD 3050 Denying Application of CenterPoint for Approval to Amend DCRFCity of West University Place
Harris County, Texas
Ordinance No. 3050
AN ORDINANCE DENYING THE APPLICATION OF CENTERPOINT ENERGY
HOUSTON ELECTRIC, LLC, FOR APPROVAL TO AMEND ITS DISTRIBUTION COST
RECOVERY FACTOR FILED WITH THE CITY OF WEST UNIVERSITY PLACE, TEXAS
ON APRIL 5, 2023; CONTAINING FINDINGS AND PROVISIONS RELATED TO THE
FOREGOING SUBJECT.
WHEREAS, on or about April 5, 2023, 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 Place1Texas ("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 2022 for an annual revenue requirement of $145,680,810, after
adjustment for load growth ("2022 DCRF"); and
WHEREAS, the 2022 DCRF included revenue requirement for temporary
emergency electric energy facilities (TEEEF), which the Public Utility Commission
("PUC") moved into a separate rider, and the PUC approved $77,976,965 for non-TEEEF
revenue requirement; and
WHEREAS, the DCRF CenterPoint filed this year amends its 2022 DCRF to
request an $84.6 million increase to its revenue requirement for a total revenue
requirement of $162.6 million; and
WHEREAS, the deadline for acting on CenterPoint's DCRF application is June 4,
2023, and the effective date of CenterPoint's amended DCRF rider is September 1, 2023;
and
WHEREAS, the City is a member of the Houston Coalition of Cities ("Coalition") in
this DCRF proceeding, as approved by Resolution No. 2023-04 by City Council May 8,
2023; 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 correct and 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 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
(DCRF) rider and the ensuing rate increase.
Section 3. That CenterPoint's 2023 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 or 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 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 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 there exists a pubic emergency requiring that this Ordinance
shall take effect immediately upon its passage and approval.
PASSED AND APPROVED thisVdday of t'm 92023.
i ayor Susan V. Sample
F�-r_SST
City Secretary Thelma A. Gilliam