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Executive Summary
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On April 17, 2009,
CenterPoint Houston Electric Energy, LLC (CenterPoint) filed with the Public
Utility Commission (PUC) an application seeking approval of $677,816,820 in Hurricane
Ike restoration costs (Docket No. 36918). By Resolution No.09-15 adopted in
May, 2009, the City Council authorized intervention in the case as a member
of the Gulf Coast Coalition of Cities (GCCC). Although this case affected CenterPoint’s rates, the Commission ruled that the case
was not a “ratemaking proceeding” and municipalities were not entitled to
reimbursement.
In August of 2009, the
PUC approved a settlement whereby CenterPoint agreed to reduce its Hurricane
Ike cost
recovery
to $662,816,820—a $15,000,000 reduction. The settlement also provided that if
CenterPoint receives any insurance proceeds, grants, or other types of compensation
in connection with the Hurricane Ike damage or restoration costs, it will
credit such payments to reduce the amount of recoverable costs, or it will
account for the payments in a future proceeding. Also, CenterPoint agreed to
reimburse the cities’ expenses.
On August 26, 2009,
the PUC also approved a settlement in Docket No. 37200 authorizing issuance
of a financing order allowing CenterPoint to securitize the Hurricane Ike costs
approved in Docket No. 36918.
This settlement
agreement was reviewed by the Council’s Audit and Finance Committee at their
October 8, 2009 meeting. The GCCC is a
signatory to the settlement agreements in Docket Nos. 36918 and 37200. The
attached Resolution No. 09-37 will approve the settlements and ratify the GCCC
attorney’s signature on the settlement agreements.
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Exhibits
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RESOLUTION NO. 09-37
A RESOLUTION OF
THE CITY COUNCIL OF THE CITY OF SUGAR LAND, TEXAS APPROVING THE UNANIMOUS
SETTLEMENT AGREEMENTS IN THE PUBLIC UTILITY COMMISSION OF TEXAS DOCKET NOS.
36918 AND 37200 REGARDING CENTERPOINT ENERGY HOUSTON ELECTRIC, LLC'S
APPLICATIONS FOR APPROVAL OF HURRICANE RESTORATION COSTS AND OF A FINANCING
ORDER AUTHORIZING SECURITIZATION OF THE COSTS; AND RATIFYING THE SIGNATURE OF
THE CITY’S COUNSEL ON THE SETTLEMENT AGREEMENTS.
WHEREAS, on or about April
17, 2009, CenterPoint Houston Electric,
LLC (CenterPoint) pursuant to PURA § 14.001 and Senate Bill 769, filed with the
Public Utility Commission of Texas (PUC)an application, PUC Docket No. 36918,
for approval of $677,816,820 in restoration costs associated with Hurricane
Ike, including $54.7 million in carrying costs; and
WHEREAS,
on July 8, 2009, CenterPoint filed an application with the PUC, Docket No.
37200, seeking approval of a financing order authorizing securitization of
$662,816,820 in costs associated with Hurricane Ike: and
WHEREAS, the PUC ruled that the
cities have no original rate jurisdiction over the Hurricane Ike restoration
costs; and
WHEREAS,
by Resolution No. 09-15 the City Council of the City of Sugar Land authorized
participation in PUC Docket Nos. 36918
and 37200 and the retention of legal counsel to represent the City as a member
of the Gulf Coast Coalition of Cities; and
WHEREAS, on August 4, 2009 a unanimous settlement was reached authorizing
CenterPoint to recover $662,816,820 in hurricane restoration costs and
resolving all matters in Docket No. 36918; and
WHEREAS,
on August 14, 2009 the PUC adopted the settlement agreement in Docket No.
36918; and
WHEREAS,
on August 18, 2009 a unanimous settlement in Docket No. 37200 was reached
authorizing issuance of a financing order; and
WHEREAS, on August 26, 2009 the PUC adopted the
settlement agreement in Docket No. 37200; NOW, THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL
OF THE CITY OF SUGAR LAND, TEXAS:
Section 1. That the settlement agreements in PUC Docket Nos. 36918 and 37200 are
reasonable and in the public interest.
Section 2. That
the City ratifies the signature of its counsel, Thomas Brocato of the law firm
of Lloyd Gosselink Rochelle and Townsend, P.C., on the settlement agreements in
PUC Docket Nos. 36918 and 37200 on behalf of the Gulf Coast Coalition of
Cities.
Section 3. That
the City Secretary is directed to send a copy of this Resolution to Thomas Brocato, General Counsel to the Gulf Coast Coalition of
Cities, at Lloyd Gosselink Rochelle & Townsend, P.C., P.O. Box 1725,
Austin, Texas 78767-1725.
APPROVED on _______________________________, 2009.
_________________________
James
A. Thompson, Mayor
ATTEST:
_____________________________
Glenda Gundermann,
City Secretary
Reviewed for Legal
Compliance:
