Posting Language
Title
Approve an ordinance to suspend a Gas Reliability Infrastructure Program interim rate adjustment proposed by CenterPoint Energy Resources Corporation. Funding: This item has no fiscal impact.
Body
Lead Department
Financial Services Department.
Fiscal Note
This item has no fiscal impact.
For More Information:
Marija Norton, Controller, 512-974-2951; Kim Euresti, Deputy Controller, 512-974-2232.
Additional Backup Information:
On February 18, 2025, CenterPoint Energy Resources Corporation (CenterPoint) made a Gas Reliability Infrastructure Program (GRIP) interim rate adjustment for CenterPoint’s Houston, Texas Coast, South Texas, and Beaumont/East Texas geographic rate areas, which includes the City of Austin. CenterPoint makes the same GRIP filing with the Railroad Commission of Texas (Commission) for customers located in the City’s environs and cities of the Houston, Texas Coast, South Texas, and Beaumont/East Texas geographic rate areas that have ceded original jurisdiction to the Commission.
This filing was made under Texas Utilities Code, Section 104.301, which establishes the GRIP and allows a gas utility, on an annual basis, to recover capital investments in gas pipeline infrastructure and related expenses made during the interim period between formal rate case filings. The last CenterPoint full-rate case was in 2023. GRIP rates must be based on reasonable increases in invested capital costs. Operation and maintenance costs cannot be recovered through a GRIP.
In this filing, CenterPoint has determined the net increase in capital invested in the Houston, Texas Coast, South Texas, and Beaumont/East Texas geographic rate areas for the period of October 1, 2023, through December 31, 2024, to be $446,227,019. The Interim Rate Adjustment will recover the incremental investment of $70,712,002.
The Interim Rate Adjustment will increase the average residential customer bill by $2.88 per month. It will increase the current monthly fixed customer charge from $25.00 to $27.88 per month excluding taxes. The Interim Rate Adjustment will increase the average monthly bill for General Service Small by $5.14. It will increase the monthly fixed customer charge from $48.00 to $53.14, excluding taxes. It will increase the average monthly bill for General Service Large volume by $61.20; with an increase in the monthly fixed customer charge from $230.00 to $291.20.
These increases have an effective date for meters read beginning on April 19, 2025, unless suspended by 45 days as allowed by Section 104.301 of the Texas Utilities Code. As the local regulatory authority for natural gas rates charged to customers in Austin, the City Council has the authority to suspend implementation of the proposed rate increase for up to 45 days to allow additional time for staff to exercise the City’s limited ministerial authority to review the filing to ensure it complies with the requirements of the GRIP statute that allows recovery of the prior year’s invested capital. Staff recommends approval of this ordinance suspending the effective date by 45 days. No further Council action will be needed.