Res 08-024
Res 08-024
CITY COMMISSION AGENDA 2
- Meeting Date:
- 03/19/2008
- Title:
- Resolution to suspend the effective date of Centerpoint Energy Gas' rate increase for the maximum period permitted by law.
- Submitted For:
- Cheryl Hunter
- Submitted By:
- Cheryl Hunter, Finance
- Department:
- Finance
ACTION REQUEST (Brief Summary)
Consider approval of a resolution suspending the effective date of Centerpoint Energy Gas' rate increase for the maximum period permitted by law to allow the City time to evaluate the filing, determine whether the filing complies with law, and if lawful, to determine what further strategy, including settlement, to pursue; also participation in Gulf Coast Coalition and hire legal and consulting services.
BACKGROUND
CenterPoint Energy Gas has filed an application with cities retaining original jurisdiction over rates and services to increase rates within their Texas Coast Division by $7.36 million. The Company's application was filed with the City on March 6, 2008.
The law provides that a rate request made by a natural gas utility cannot become effective until 35 days following the filing of the application to change rates. The law permits the City to suspend the effective date for 90 days. If the City does not take action to suspend the filing, CenterPoint may begin charging increased rates after April 10, 2008. According to CenterPoint, annual rates would increase by approximately $42 for residential customers.
The City has participated in prior rate matters with a coalition of cities now known as Gulf Coast Coalition of Cities (GCCC). GCCC is a coalition of thirteen cities who have passed resolutions authorizing GCCC to intervene on behalf of the city in numerous utility matters pending before regulatory agencies, the Courts or the Legislature.
The law provides that a rate request made by a natural gas utility cannot become effective until 35 days following the filing of the application to change rates. The law permits the City to suspend the effective date for 90 days. If the City does not take action to suspend the filing, CenterPoint may begin charging increased rates after April 10, 2008. According to CenterPoint, annual rates would increase by approximately $42 for residential customers.
The City has participated in prior rate matters with a coalition of cities now known as Gulf Coast Coalition of Cities (GCCC). GCCC is a coalition of thirteen cities who have passed resolutions authorizing GCCC to intervene on behalf of the city in numerous utility matters pending before regulatory agencies, the Courts or the Legislature.