Agenda - View Meetings (All) (7942746590)

Return

(7)(d)

CITY COMMISSION REGULAR MTG

Meeting Date:

07/03/2024

CenterPoint Electric - Denial Resolution

Submitted For:

Rhomari Leigh

Submitted By:

Rhomari Leigh, City Secretary

Department:

City Secretary

Information

ACTION REQUEST

To adopt a denial resolution of CenterPoint's proposed rates.

BACKGROUND (Brief Summary)

On March 6, 2024, CenterPoint Energy Houston Electric, LLC (“CenterPoint” or “Company”) filed an application with cities retaining their original jurisdiction seeking to increase system-wide transmission and distribution rates by $60 million per year. CenterPoint asks the City to approve an increase of $17 million in retail transmission and distribution rates (an increase of about 1%) and $43 million in wholesale transmission rates (an increase of about 6.6%). According to CenterPoint, the impact on an average residential customer would be an increase of about $1.25 per month.
In a prior City action, CenterPoint’s rate request was suspended from taking effect for 90 days, the fullest extent permissible under the law. This time period has permitted the City, through its participation with the Gulf Coast Coalition of Cities (“GCCC”), to determine that the proposed rate increase is unreasonable. Consistent with the recommendations of experts engaged by GCCC, CenterPoint’s request for a rate increase should be denied.

Accordingly, the purpose of the Resolution is to deny the rate change application proposed by CenterPoint.

RECOMMENDATION

City Staff and Legal Counsel recommend adopting a denial resolution of CenterPoint's proposed rates.

Fiscal Impact

Funds Available Y/N:

N/A

Amount Requested:

Source of Funds:

Account #:

Fiscal Impact:

Attachments

Resolution