HomeMy WebLinkAbout1598 08-12-2003ORDINANCE NO. 1598
AN ORDINANCE OF THE CITY OF EULESS, TEXAS, DENYING TXU GAS
COMPANY'S REQUEST TO CHANGE RATES IN THE CITY OF EULESS, 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 Euless ( "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 §§ 102.001(b) and 103.001; and
WHEREAS, the Texas Utilities Code § 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 more than 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.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
EULESS, TEXAS:
SECTION 1
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
0
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.
SECTION 2
THAT the costs incurred by the City in reviewing the Company's application be promptly
reimbursed by the Company.
SECTION 3
THAT this Ordinance shall become effective immediately from and after its passage, as
the law and charter in such cases provide.
SECTION 4
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.
SECTION 5
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.
PRESENTED AND PASSED ON FIRST AND FINAL READING at a regular meeting of
the Euless City Council on the 12'h day of August, 2003, by a vote of 7 ayes, 0 nays,
and 0 abstentions.
APPROVED: APPROVED AS TO FORM:
Mary Lib S eh, Mayor
ATTEST:
usan Cnm. C,—City Secretary
Ordinance No. 1598, Page 2 of 2