CenterPoint Energy 2015 Annual Report Download - page 67

Oklahoma Performance Based Rate Change (PBRC). InMarch2015,NGDmadeaPBRCfilingforthe2014calendaryearproposingtoincreaserevenuesby
$0.9million.OnNovember4,2015,theOklahomaCorporationCommissionapprovedtherequest.
Arkansas Energy Efficiency Cost Recovery (EECR). On March 31, 2015, NGDmade an EECR filing with the APSCtorecover $5.9 million for the 2015
programyear.ThepurposeoftheEECRistorecoverNGD’sestimatedexpensesandlostcontributionstofixedcostfortheenergyefficiencyprogramsapproved
bytheAPSCandadministeredeitherjointlyorindividuallybyNGD,plusautilityincentiveearnedfor2014,withadjustmentsforanyover-orunder-recovery
fromthepriorperiod.Theimpacttocustomerbillsisexpectedtobeasmallreductionduetoactualprogramcostsbeinglessthanestimatedand acolderthan
normalyearcausingmoreEECRrevenuesthananticipated.NewrateswentintoeffectinJuly2015.
Arkansas Rate Case. OnAugust17,2015,NGDfiledaNoticeofIntenttoFileageneralratecasewiththeAPSC.TheratecasewasfiledonNovember10,
2015seekinga$35.6millionincreaseinrevenuerequirementanda10.3%ROE.AproceduralschedulehasbeenestablishedwithahearingscheduledforJuly12,
2016.AfinaldeterminationbytheAPSCisexpectedinthethirdquarterof2016.
Louisiana Rate Stabilization Plan (RSP). NGDmadeits2015Louisiana RSPfilingswiththeLouisianaPublicServiceCommission(LPSC)onOctober1,
2015.TheNorthLouisianaRiderRSPfilingshowsarevenuedeficiencyof$1.0million,andtheSouthLouisianaRiderRSPfilingshowsarevenuedeficiencyof
$1.5million.Both2015RSPfilingsutilizedthecapitalstructureandROEfactorsapprovedbytheLPSConSeptember23,2015discussedbelow.NGDbegan
billinginDecember2015subjecttoarefund.NGDmadeits2014LouisianaRSPfilingswiththeLPSConOctober1,2014.TheNorthLouisianaRiderRSPfiling
showsarevenuedeficiencyof$4.0million,comparedtotheauthorizedROEof10.25%.TheSouthLouisianaRiderRSPfilingshowsarevenuedeficiencyof
$2.3million,comparedtotheauthorizedROEof10.5%.NGDbeganbillingtherevisedratesinDecember2014,subjecttorefund.OnNovember19,2014,NGD
sought permission to amend the 2013 South Louisiana RSP filing to use a more representative capital structure and to adjust the filing’s equity banding
mechanism.OnDecember2,2014,NGDsoughtpermissionforsimilaramendmentstothe2013NorthLouisianaRSPfiling.OnSeptember3,2015,Uncontested
StipulatedSettlementAgreements(Stipulations)betweenNGDandtheLPSCStaffwerefiledinthe2013LouisianaRSPdocketsrecommendingacapitalstructure
of48%debtand52%equityandROEof9.95%.OnSeptember23,2015,theLPSCissuedordersapprovingtheStipulationsandorderedrefundsofthe2013RSP
over-collections plus 5% annual interest. Refunds for the 2013 North and South Louisiana RSP filings in the amount of approximately $0.9 million and $0.6
million,respectively,becameeffectiveinSeptember2015.The2014and2015LouisianaRSPfilingsarestillawaitingfinalapprovalfromtheLPSC.
OnFebruary20,2015,theLPSCissuedordersreducingratesandrequiringrefundsofover-collectionsplus5%interestbasedondisallowanceofcertaincosts
includedinthe2012RSPfilings.NorthLouisianawasrequiredtoadjustits2012RSPincreasefrom$36,400to$2,600.SouthLouisiana’s2012RSPwasfurther
reducedby$0.1million.NewrateswentintoeffectonFebruary23,2015.
Mississippi Rate Regulation Adjustment (RRA) .OnMay1,2015,NGDfiledfora$2.5millionRRAwithanadjustedROEof9.534%withtheMississippi
PublicServiceCommission(MPSC).AdditionalfilingsweremadeundertheSupplementalGrowthRider(SGR)ofapproximately$0.1millionwithanROEof
12%andtheEECRriderofapproximately$0.6million.TheMPSCapprovedtheEECRandnewrateswereimplementedonSeptember2,2015.NGDandthe
Mississippi Commission Staff filed a Stipulation on December 1, 2015 in the RRA, which was approved by the MPSC on December 3, 2015. The stipulated
revenueadjustmentis$1.9millionwithanROEof9.534%.TheSGRwasapproved,asfiled,onDecember3,2015.NewratesfortheRRAandtheSGRwere
implementedinDecemberof2015.
Minnesota Conservation Cost Recovery Adjustment (CCRA) and CIP .OnMay1,2015,NGDfiledapplicationswiththeMPUCforaCCRAandaDemand-
SideManagementFinancialIncentive. NGDsoughtapprovalfora$2.3millionbalanceinitsCIPTracker,an$11.6millionfinancialincentivebasedon2014
programperformance,andanupdatedCCRA,tobeeffectiveonJanuary1,2016.OnAugust11,2015,theMPUCissueditsorderapprovingtheserequests.
Minnesota Rate Case. InAugust2015,NGDfiledageneralratecasewiththeMPUCrequestinganannualincreaseof$54.1million.OnSeptember10,2015,
the MPUC approved an interim increase of $47.8 million in revenues effective October 2, 2015, subject to a refund. The MPUC is expected to issue a final
decisioninmid-2016withfinalrateseffectivebytheendof2016.
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