Title
Consider and take action on a resolution by the City of League City, Texas (“City”) denying the application of CenterPoint Energy Houston Electric, LLC, for authority to increase rates submitted on or about March 6, 2024; authorizing participation in a coalition of similarly situated cities; authorizing participation in related rate proceedings; requiring the reimbursement of municipal rate case expenses; authorizing the retention of special counsel (City Attorney)
Background:
On March 6, 2024, CenterPoint Energy Houston Electric, LLC (“CEHE”) filed an application to increase its retail rates by approximately $60 million in annual revenue, or 2.6% in comparison to current retail revenues. The increase of $60 million is comprised of an increase of about $17 million for retail customers and about $43 million for wholesale transmission customers.
CEHE requested that its rates become effective on April 10, 2024. This is CEHE’s first comprehensive base rate proceeding since about April, 2019. By prior action the City suspended CEHE’s proposed effective date for the statutorily allowed period, to July 9, 2024.
Also, the increase CEHE presents in its application is above recent increases in rates CEHE has implemented through its “DCRF” (Distribution Cost Recovery Factor), and its “TEEEF” (Temporary Emergency Electric Energy Facilities), better known as “mobile generation” batteries. Combined, since April, 2022, through its DCRF and TEEEF rate mechanisms CEHE has increased its revenue by approximately $412.7 million. Thus, looking only at CEHE’s proposed increase in revenues in its just-filed application would not present the full picture of increases in CEHE’s rates.
Further, the investments in distribution facilities CEHE has made since April, 2022, are subject to review for “prudence” in this proceeding. So, at issue in the pending case are CEHE’s combined increases in revenue totaling about $472.7 million.
PUCT PROCEEDINGS:
CEHE filed its Statement of ...
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