HomeMy WebLinkAboutCity Council Resolutions (R-02-1964)-05/21/2002
RESOLUTION R-02-1964
AUTHORIZING INTERVENTION IN GAS UTILITIES DOCKETS 9292 AND 9304 AT
THE RAILROAD COMMISSION; AUTHORIZING PARTICIPATION IN A STEERING
COMMITTEE WITH OTHER CITIES SERVED BY TXU; AND REQUIRING
REIMBURSEMENT FROM TXU LONE STAR PIPELINE OF CITIES' REASONABLE
RATE CASE EXPENSES
WHEREAS, TXU Lone Star Pipeline (LSP) filed a Statement of Intent with the Railroad
Commission (designated as GUD 9292) on April 5, 2002, to surcharge
residential and commercial gas customers who are residents of the City of
Colleyville, Texas to cover costs associated with a new pipeline to serve
the Metroplex; and
WHEREAS, the requested surcharges of 37~ per month and $2.10 per month on
residential and commercial customers, respectively, will adversely impact
the City of Colleyville, Texas and its residents; and
WHEREAS, TXU Lone Star Pipeline (LSP) filed a second statewide surcharge case on
May 8, 2002, (designated as GUD 9304) requesting authority to establish
a monthly fee to recover future, unpredictable expenses associated with
implementation of a pipeline integrity and safety assessment (ISA)
program; and
WHEREAS, the requested surcharge in GUD 9304 will have an immediate impact of
$1.25 to $2.50 annually per residential customer, with the potential for
much higher increases in the future becoming automatic once the
surcharge mechanism is approved and becomes a precedent for
automatic pass through of costs associated with a pipeline safety cost
recovery program; and
WHEREAS, Cities served by TXU have a history of cooperation in gas rate matters
and such cooperation in GUD 9292 and GUD 9304 will be efficient and
cost effective in evaluating whether the proposed pipeline is reasonable
and necessary and whether associated costs should be recovered in
ratemaking through a surcharge; and
WHEREAS, pursuant to Utilities Code S 103.023, municipalities have standing to
intervene in these cases;
WHEREAS, pursuant to Utilities Code S 103.022, municipalities are entitled to
reimbursement of their reasonable costs of participation.
Resolution R-02-1964
Page 2 of 3
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
COLLEYVILLE, TEXAS:
Sec. 1.
Sec. 2.
Sec. 3.
Sec. 4.
THAT the City Council of the City of Colleyville, Texas, authorizes a City
Manager's designee, to represent the City on the Steering Committee of
affected cities (hereinafter called "Steering Committee") and authorizes
the Steering Committee of which the City is a participating member, to
retain legal counsel and engage consultants, and to intervene on behalf of
the City in related dockets and appeals.
THAT the Steering Committee formed to oversee this effort on behalf of
cities is authorized to take all reasonable steps before the Railroad
Commission and before the Courts as may be necessary in an appeal of a
Commission Order.
THAT LSP is hereby directed to promptly pay cities' rate case expenses
as they are incurred.
THAT the City Secretary shall cause copies of this resolution to be sent to
the TXU representative:
Autry Warren
Rate Manager
TXU Gas Distribution
1601 Bryan Street
Dallas, Texas 75201-3402
and to:
Jay B. Doegay
City Attorney
City of Arlington
Post Office Box 231
Arlington, Texas 76004-0231
for forwarding to the Steering Committee.
AND IT IS SO RESOLVED.
PASSED BY A VOTE OF S AYES, 0 NAYS, AND 0 ABSTENTIONS ON
THIS THE o.V -.u DAY OF Y/1 ~ 2002.
Resolution R-02-1964
Page 3 of 3
ATTEST:
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City Secretary
CITY OF COLLEYVILLE:
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Mayor