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RESOLUTION NO. 2012 - 58 R A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN MARCOS, TEXAS, ( "CITY ") RESPONDING TO THE APPLICATION OF CENTERPOINT ENERGY ENTEX, SOUTH TEXAS DIVISION TO INCREASE RATES UNDER THE GAS RELIABILITY INFRASTRUCTURE PROGRAM; SUSPENDING THE EFFECTIVE DATE OF THIS RATE APPLICATION FOR FORTY -FIVE DAYS; AUTHORIZING THE CITY TO CONTINUE TO PARTICIPATE IN A COALITION OF CITIES KNOWN AS THE "ALLIANCE OF CENTERPOINT MUNICIPALITIES "; REQUIRING THE REIMBURSEMENT OF COSTS; DETERMINING THAT THE MEETING AT WHICH THE RESOLUTION WAS ADOPTED COMPLIED WITH THE TEXAS OPEN MEETINGS ACT; MAKING SUCH OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND DECLARING AN EFFECTIVE DATE. RECITALS: 1. On March 30, 2012 CenterPoint Energy Entex, South Texas Division ( "CenterPoint ") filed for an increase in gas utility rates under the Gas Reliability Infrastructure Program (`GRIP "), resulting in a requested increase in the monthly customer charge from $13.95 to $15.28; and 2. There are many customers of limited means who receive gas service from CenterPoint and relatively small increases in rates can have a negative effect on those customers being able to make ends meet; and 3. The City has a special responsibility to exercise due diligence before approving rate increases of monopoly utilities who operate within its boundaries; and 4. The application to increase rates by CenterPoint is very lengthy and complex; and 5. It is necessary to suspend the effective date for the increase in rates for forty -five days, so that the City can assure itself that the data and calculations in CenterPoint's rate application are correctly done; and 6. The effective date proposed by CenterPoint is May 29, 2012 but a suspension by the City will mean that the rate increase cannot go into effect prior to July 13, 2012 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SAN MARCOS, TEXAS: