Consider and take action Resolution No. 18-033, finding that Centerpoint Energy Houston Electric, LLC’s Application for Approval to amend its Distribution cost recovery factor pursuant to 16 tex. admin. code § 25.243 to increase distribution rates within the City should be denied. (City Secretary)

Centerpoint Energy periodically updates their rates to adjust for increase costs due to several factors including inflation, etc.  This year they are having to adjust their costs due to the tax relief they received through Tax Cuts and Jobs Act of 2017.  While this amount reflects a decrease due to the Tax Cuts and Jobs Act of 2017, our consortium of cities would like to review Centerpointe's calculations to determine if the full decrease is actually reflected.  As you will see in the Attorney's memo attached.  Centerpoint will appeal our denial and a rate case will be fully reviewed by all parties including a consultant for the consortium of cities.  At the end a rate will be determined that is appropriate.
Staff recommends the approval of the Resolution that would deny Centerpointe's rate.