Stipulation Would Drastically Cut Sought Increase In CenterPoint-TDU DCRF Charged To REPs

CenterPoint Energy Houston Electric, LLC (CEHE) and various parties filed a stipulation with the Public Utility Commission of Texas to update CEHE's Distribution Cost Recovery Factors (Rider DCRF), for the period beginning September 1, 2018, and the period beginning September 1, 2019.

The stipulation incorporates an estimated refund related to the Tax Expense Regulatory Liability and certain unprotected excess deferred income tax (EDIT amounts), as well as, CEHE's compliance with the Amended Accounting Order in Project No. 47945.

As of the execution of the stipulation, the estimated amount of the Tax Expense Regulatory Liability, excluding interest, is $20,000,000.

The signatories agree that in December 2018, CEHE will file an updated DCRF tariff to adjust the interim DCRF rates to reflect any difference between the $20,000,000 estimated Tax Expense Regulatory Liability and the actual Tax Expense Regulatory Liability recorded by CenterPoint Houston.

Such updated and final DCRF rates described in paragraph 4 shall be effective in CEHE's March 2019 billing month, and the entirety of CEHE's actual Tax Expense Regulatory Liability shall be returned to customers through CEHE's DCRF tariff during the period from September 1, 2018 through August 31, 2019.

The stipulation requires CEHE's protected EDIT balance to be addressed in its 2019 base rate case or through a filing made by CEHE on or before April 30, 2019, in the event a base rate case is not filed by that date

CEHE will give 45 days notice to retail electric providers prior to the implementation of any DCRF rates contemplated under the settlement, including the contemplated update to the DCRFs to be effective March 1, 2019

The stipulation sets forth the following DCRFs for the periods beginning September 1, 2018, and September 1, 2019, except that, as noted above, CEHE will file an update to the DCRFs to be effective March 1, 2019.

CenterPoint Energy Houston Electric
Stipulation DCRFs
To Be Effective 9/1/18

Residential        $0.000762 per kWh
Secondary ≤10 kVA  $0.000964 per kWh
Secondary >10 kVA  $0.127888 per kVA
Primary            $0.057826 per kVA
Transmission       $0.002219 per 4CP kVA
Lighting           $0.012569 per kWh


CenterPoint Energy Houston Electric
Stipulation DCRFs
To Be Effective 9/1/19

Residential        $0.001145 per kWh
Secondary ≤10 kVA  $0.001448 per kWh
Secondary >10 kVA  $0.192072 per kVA
Primary            $0.086847 per kVA
Transmission       $0.003333 per 4CP kVA
Lighting           $0.018877 per kWh

For the period beginning September 1, 2018, the stipulation DCRFs are significantly lower than the DCRFs originally proposed by CEHE in its initial filing. Furthermore, for nearly all classes, the stipulation DCRFs are lower than the currently effective DCRFs

For all classes, the stipulation DCRFs are significantly lower than the September 1, 2018 DCRFs currently authorized in CEHE's tariff and which would be applicable but for an update through the instant case and stipulation.

For residential customers, the stipulation September 1, 2018 DCRF ($0.000762 per kWh) is only 0.1 mill per kWh higher than the current residential DCRF ($0.000624 per kWh), but significantly below the currently tariffed September 1, 2018 DCRF ($0.001606 per kWh)

For comparison, CEHE had originally proposed in the proceeding the following DCRFs to be effective September 1, 2018:

CenterPoint Energy Houston Electric
CEHE Originally Proposed DCRFs
To Be Effective 9/1/18

Residential        $0.001486 per kWh
Secondary ≤10 kVA  $0.001878 per kWh
Secondary >10 kVA  $0.249200 per kVA
Primary            $0.112678 per kVA
Transmission       $0.004325 per 4CP kVA
Lighting           $0.024491 per kWh

For further comparison, below are the current DCRFs as well as the DCRFs previously approved and tariffed to take effect September 1, 2018 barring any change prior to such date:

CenterPoint Energy Houston Electric
Current DCRFs

Residential        $0.000624 per kWh
Secondary ≤10 kVA  $0.001831 per kWh
Secondary >10 kVA 
  Non-IDR          $0.247349 per kVA
  IDR              $0.264460 per kVA
Primary            
  Non-IDR          $0.112687 per kVA
  IDR              $0.113386 per kVA
Transmission       $0.004977 per 4CP kVA
Lighting           $0.023973 per kWh



CenterPoint Energy Houston Electric
Currently Tariffed DCRFs For 
Period Starting 9/1/18

Effective:         9/1/18
Residential        $0.001606 per kWh
Secondary ≤10 kVA  $0.002086 per kWh
Secondary >10 kVA 
  Non-IDR          $0.273443 per kVA
  IDR              $0.273443 per kVA
Primary            
  Non-IDR          $0.117238 per kVA
  IDR              $0.117238 per kVA
Transmission       $0.005146 per 4CP kVA
Lighting           $0.024788 per kWh

Signatories to the stipulation include CenterPoint Houston, the Staff of the Public Utility Commission of Texas, the Office of Public Utility Counsel, the City of Houston, Texas Coast Utilities Coalition, Gulf Coast Coalition of Cities, Texas Energy Association for Marketers, and Alliance for Retail Markets. Texas Industrial Energy Consumers is unopposed to the stipulation.

Docket 48226