HomeMy WebLinkAboutOrdinances (O-03-1410)-08/06/2003
ORDINANCE 0-03-1410
AN ORDINANCE OF THE CITY OF COLLEYVILLE, TEXAS, DENYING TXU GAS
COMPANY'S REQUEST TO CHANGE RATES IN THIS MUNICIPALITY, AS A PART OF
THE COMPANY'S STATEWIDE GAS UTILITY SYSTEM; PROVIDING A REQUIREMENT
FOR A PROMPT REIMBURSEMENT OF COSTS INCURRED BY THE CITY; FINDING
THAT THE MEETING AT WHICH THIS ORDINANCE IS PASSED IS OPEN TO THE
PUBLIC AS REQUIRED BY LAW; AND PROVIDING FOR NOTICE OF THIS
ORDINANCE TO TXU GAS COMPANY
WHEREAS, on or about May 23, 2003, TXU Gas Company (the "Company") filed with the
City of Colleyville ("City"), a Statement of Intent to change gas rates in all
municipalities within the Company's statewide gas utility system effective
June 27, 2003; and
WHEREAS, the City has previously extended the effective date of the Company's rate
filing; and
WHEREAS, the City has exclusive original jurisdiction to evaluate the Company's
Statement of Intent as it pertains to the distribution facilities located within
the City, pursuant to Texas Utilities Code 99 102.001 (b) and 103.001; and
WHEREAS, the Texas Utilities Code 9 103.022 provides that costs incurred by the City in
ratemaking activities are to be reimbursed by the regulated utility; and
WHEREAS, the City is participating with a coalition of over 120 other Cities in opposition
to the Company's filing at the Railroad Commission, said coalition being
known as Allied Coalition of Cities ("ACC"), in GUD No. 9400 pending at the
Commission; and
WHEREAS, ACC and the Company have reached a procedural agreement regarding the
schedule for processing GUD No. 9400 that includes TXU's concession to
allow one hundred fifteen (115) additional days to process the rate case and
ACC's commitment that member Cities expedite the process of getting city
action appealed to the Commission; and
WHEREAS, ACC and TXU jointly endorse the City's denial of the Company's rate
application pending before the City; and
WHEREAS, counsel for ACC, upon review of the Company's filing and upon consultation
with various consultants, recommends findings that the Company's proposal
is unjustified and unreasonable; and
WHEREAS, the City has determined that the Company's Statement of Intent to change
gas rates should be denied.
Ordinance 0-03-1410
Page 2 of 3
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
COLLEYVILLE, TEXAS:
Sec. 1.
Sec. 2.
Sec. 3.
Sec. 4.
Sec. 5.
THAT the Company's Statement of Intent to change gas rates within the City,
as part of the Company's statewide gas utility system, is found to be
unreasonable because: (a) TXU's requested return on equity is excessive,
generating more than 86% of the requested increase in rates; (b) the basis
for TXU's proposed consolidations (of regional distribution systems and of
pipeline costs with distribution costs) has not been established; (c) the City's
jurisdiction to increase pipeline rates has not been established and,
therefore, the proposed pipeline cost increases should be disallowed; (d)
revenue requirements should be reduced rather than increased; and (e) the
TXU filing should be denied pursuant to agreement with the Company; and is
therefore denied in all respects.
THAT the costs incurred by the City in reviewing the Company's application
be promptly reimbursed by the Company.
THAT this Ordinance shall become effective immediately from and after its
passage, as the law and charter in such cases provide.
THAT it is hereby officially found and determined that the meeting at which
this Ordinance is passed is open to the public as required by law and that
public notice of the time, place and purpose of said meeting was given as
required.
THAT a copy of this ordinance, constituting final action on the Company's
application, be forwarded to the appropriate designated representative of the
Company within 10 days as follows: Autry L. Warren, Director Gas
Regulatory, TXU Business Services, 1601 Bryan Street, Dallas, Texas
75201-3402.
AND IT 15 50 ORDERED.
/5 ~ day of
The first reading and public hearing being conducted on the
~J 2003.
The second reading and public hearing being conducted on the
~~C 2003.
~ ~ day of
Ordinance 0-03-1410
Page 3 of 3
ATTEST:
CITY OF COLLEYVILLE
~ry~
Cynthia Singleton, TRMC
City Secretary
APPROVED AS TO FORM AND LEGALITY:
~~~.
Ross T. Foster
City Attorney