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’s continued participation in a coalition of cities known as the "Texas Coast Utilities Coalition of Cities;” 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 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 requests that its rates become effective on April 10, 2024. This is CEHE’s first comprehensive base rate proceeding since about April, 2019.
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.
CITY JURISDICTION TO SET CEHE’s RATES:...
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