The agreement is due to be approved by the Public Users Commission, which is expected to host it next week. The Houston Chronicle reported on the problem and found that cities could challenge CenterPoint`s proposed rate hikes, while adding that the distribution company had previously reached an agreement with the City of Houston not to launch rate cases by 2016. Houston is not part of the urban coalition. CenterPoint also asked regulators when it asked in April to increase its authorized yield, a proxy for profit, which was set a decade ago, to 10.4 percent. Under the agreement, CenterPoint settled for a return on equity of 9.4 percent. The deal deal represents only a tiny portion of the increase in payouts that CenterPoint, the regulated distribution company that distributes most of the electricity in the Houston area. It reduces the transmission and distribution costs of most electricity bills in households by about 2% compared to the previous year. The Gulf Coast Coalition of Cities, a group of 39 Houston-area cities with customers served by CenterPoint, said the deal was a good result for the distribution company`s 2.4 million customers in the Houston area. Memphis` poverty and crumbling power grid played a role in the Memphis City Council`s defeat to a 30 percent increase in the price of waste on Tuesday, and dealt a blow to Mayor Jim Strickland`s government`s efforts to pay for changes already made to Memphis` garbage department.
The defeat, the result of a rare 6-6 tie (see below in history for the votes), is a scenario in which the municipal administration must ask the council for more general dollars of funds to compensate for what the population`s prices do not cover. Before the vote, the director of the Solid Waste City, Al Lamar, raised the possibility of not making a pay slip without the rate hike. “While we didn`t get everything we wanted in this deal – that`s just the nature of these types of deals – we ultimately got a fair result that will limit the increase in electricity bills for the citizens of our communities,” said coalition lawyer Chris Brewster. The agreement also calls for CenterPoint to reduce its return on equity or profit to 9.4 percent. CenterPoint asked the Commission to increase its return on equity from 10 percent to 10.4 percent. Puct approved the deal agreement between CenterPoint Energy Houston and several stakeholders, except that its language “appears to engage future commissions,” President DeAnn Walker said Feb. 14, adding, “I don`t think we can take an order that commits future commissions.