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ALJ Denies CenterPoint’s Withdrawal Of Rate Case
ALJ ruled that CenterPoint did not demonstrate good cause and turned to the rules of construction to resolve competing positions on the issue.
From Order:
[ *** ] No party argues that CenterPoint does not meet the condition for withdrawing under Rule 22.181(g)(1): it has not yet presented its direct case. Rather, Joint Intervenors and TIEC argue that withdrawal should not be allowed as a matter of right when, as here, the party that initiated the proceeding was required to do so under the Commission’s rules and multiple orders.
To resolve these competing positions, the ALJ turns to the rules of construction. Agency rules have the same force as statutes and are construed in the same manner. However, “when a rule of procedure conflicts with a statute, the statute prevails . . . . ” “It is an elementary rule of construction that, when possible to do so, effect must be given to every sentence, clause, and word of a statute so that no part thereof be rendered superfluous or inoperative.” Where possible, two provisions should be construed in a way that harmonizes rather than conflicts.
Under these rules of construction, Rule 25.247(b)(1) is best harmonized by concluding that Rule 22.181(g)(1) does not operate where the application was filed under compulsion. Withdrawing CenterPoint’s application conflicts with the requirement for investor-owned electric utilities in the ERCOT region to file a comprehensive rate review within 48 months of the order in the utility’s most recent comprehensive rate proceeding. Therefore, withdrawing CenterPoint’s application would impede the Commission’s ability to review CenterPoint’s rates in accordance with PURA section 36.157 and render the Rate Review Schedule inoperative. While CenterPoint has complied with the letter of the rule and Commission orders to file a rate case, allowing it to withdraw would defeat the purpose of filing, namely, “to modify or review base rates charged by the electric utility,” as required by PURA section 36.157(b).
The Commission may grant an exception to its Rate Review Schedule when good cause has been shown. However, CenterPoint has given no explanation for how pursuit of its Greater Houston Resiliency Initiative-launched four days after its notice of withdrawal was filed-interferes in any way with its ability to proceed in this matter. [ *** ]
Order (08/16/2024)
56211 (02/12/2024)
(Application Of CenterPoint Energy Houston Electric, LLC For Authority To Change Rates)
