Title
Consider and take action on a resolution to suspend the effective date proposed by Centerpoint Energy Houston Electric, LLC (“CEHE”) for 90 days in its application to increase rates; authorizing the City of League City’s continued participation in a coalition of cities known as the "Texas Coast Utilities Coalition;” authorizing participation in proceedings at the Public Utility Commission of Texas; authorizing the hiring of attorneys and consultants; requiring reimbursement of reasonable legal and consultant expenses; and requiring CEHE to provide proof of publication of notice (City Attorney)
Background:
On April 5, 2019, CenterPoint Energy Houston Electric, LLC (“CEHE”) filed an application to increase its retail rates by approximately $154 million in annual revenue, or 7.4% in comparison to current retail revenues. CEHE requests that its rates become effective on May 10, 2019. This is CEHE’s first comprehensive base rate proceeding since 2010.
CITY JURISDICTION TO SET CEHE’s RATES:
Municipalities have exclusive, original jurisdiction over an electric utility’s rates, services, and operations within a city’s boundaries. This means that for a utility like CEHE to change its rates it must seek approval to do so from the city in which it provides its service. Even if a city has ceded its jurisdiction to the Public Utility Commission of Texas (“PUCT”), a city nonetheless has the statutory right to participate in rate proceedings before the PUCT.
TEXAS COAST UTILITIES COALITION (“TCUC”)
In prior rate cases filed by CEHE, the City has acted in concert with other similarly situated cities and undertaken its review of CEHE’s rate applications as part of a coalition of cities known as the Texas Coast Utilities Coalition (“TCUC”). TCUC was organized by a number of municipalities served by TCUC and the City has participated through TCUC in rate proceedings involving TCUC.
In CEHE’s prior general rate case submitted in June, 2010, in Docket No. 38339 b...
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