CITY OF KYLE, TEXAS

CenterPoint Energy

A Resolution by the City of Kyle, Texas (“City”) suspending the effective date for ninety days in connection with the rate increase filing made on or about November 16, 2017 by CenterPoint Energy Resources Corporation, d/b/a, CenterPoint Energy Entex and CenterPoint Energy Texas Gas, for its South Texas Division; finding that the meeting complies with the open meetings act; making other findings and provisions related to the subject; and declaring an effective date. ~ Jerry Hendrix, Chief of Staff

The city of Kyle received official notification regarding Centerpoint Gas' intention to raise rates on Thursday, November 16th. This is a general rate case and not part of the utlitity's annual Gas Reliability and Infrastructure Program filling. The last general rate case filled by the utility was in 2010. Five GRIP requests have been filed by the utility since the last general rate case.

The city of Kyle has approximately 8,000 residential Centerpoint Gas customers. Additionally, there are 318 small volume commercial customers and one large volume commercial customer in the city.

The city of Kyle is part of the Alliance of CenterPoint Municipalities-South Texas Division (“ACM”) which was organized by a number of municipalities, served by CenterPoint.  Alfred R. Herrera with the law firm of Herrera Law & Associates, PLLC, has previously represented the City as part of ACM in rate cases involving CenterPoint. There are currently 72 cities and other jurisdictions represented in the ACM with approximately 140,000 customers.

The A full analysis of the rate request is attached as back up to this agenda item. In summary, the bulk of the increase is on the residential base rate which is proposed to increase from $23.24/mth to $26.00/mth. This will be partially offset by a reduction in the commodity charge. The resulting increase will be $1.14 on average per household. The commercial classes of customers will see a rate reduction based on the submitted rate proposal.

Cities by statute are entitled to recover their reasonable rate case expenses from the utility.  See Gas Utility Regulatory Act § 103.022.  Legal counsel and consultants approved by ACM will submit monthly invoices to the coalition-designated city that will be forwarded to CenterPoint for reimbursement.  No individual city’s budget is negatively affected.