Posting Language
Title
Conduct a public hearing and consider an ordinance approving CenterPoint Energy's proposal to increase customer natural gas rates.
De
Lead Department
Telecommunications and Regulatory Affairs.
Fiscal Note
This item has no fiscal impact.
Prior Council Action:
Council suspended CenterPoint's proposed GRIP rates on May 9, 2019. On May 23, 2019 Council voted to set the public hearing.
For More Information:
Rondella M. Hawkins, TARA Officer, 512-974-2422.
Additional Backup Information:
On March 28, 2019, CenterPoint Energy Resources Corp., South Texas Division (CenterPoint) made a Gas Reliability Infrastructure Program (GRIP) filing in Austin and in the other cities that it serves in the South Texas Division. This filing was made in compliance with the Texas Utilities Code, Section 104.301, which allows a gas utility to make interim rate adjustments to recover capital investments in gas pipeline infrastructure made during the interim period between rate cases. GRIP rates must be based on reasonable increases in invested capital costs. Operation and maintenance costs cannot be recovered through GRIP.
The filing notified cities of CenterPoint's intent to increase rates by $37,256,789, which is based on CenterPoint's net increase in capital investment in its South Texas Division for the period of October 1, 2017 through December 31, 2018. (Although GRIP filings typically cover calendar year costs, rules of the Texas Railroad Commission treat the first rate adjustment following a rate case differently. The rules allow gas utilities to recover any invested capital that occurs between the end of the rate case test year and the end of the following calendar year. CenterPoint filed a rate case in 2017 in which the test year ended September 30, 2017.)
The proposed IRA would become effective on July 11, 2019, following Council's approval of a 45- day extension from the original May 27, 2019 effective date. Based on company-provided informati...
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