Title
Consider and take action on a resolution that denies an increase in revenue and a change in rates proposed by CenterPoint Energy Resources Corporation, D/B/A, CenterPoint Energy Entex and CenterPoint Energy Texas Gas; authorizes continued participation in the Texas Coast Utilities Coalition of Cities; representation of the City by special counsel intervention in proceedings related to CenterPoint’s Statement of Intent; and requires the reimbursement of municipal rate case expenses (City Attorney)
BACKGROUND
On or about October 30, 2023, CenterPoint Energy Resources Corporation, D/B/A, CenterPoint Energy Entex and CenterPoint Energy Texas Gas (“CenterPoint” or “Company”) filed a Statement of Intent to increase rates by a total of approximately $37.4 million. CenterPoint filed its application with the Railroad Commission of Texas (RRC) on the same date it filed its application with the City.
Further, though the overall increase is $37.4 million, CenterPoint proposes to increase rates for its residential class of customers by $58.4 million, and to decrease rates for its small and large commercial customers by a combined amount of about $21 million.
Additionally, a key element of CenterPoint’s application is that it proposes to consolidate its four rate divisions into a single rate division. Currently, CenterPoint has four divisions: the Beaumont/East Texas Division; the South Texas Division; the Texas Coast Division; and the Houston Division. CenterPoint asserts that the effect of combining the four divisions into a single division is to produce a decrease in rates in its Beaumont/East Texas Division and in its South Texas Division, while increasing rates in its Texas Coast Division and in the Houston Division. Note that the RRC has recently approved other utilities’ similar requests that proposed consolidation of those other utilities’ separate rate divisions into a single division.
Another central factor in CenterPoint’s application is that even t...
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