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HomeMy WebLinkAboutResolution No. 02-25 ORI$1NA[. A RESOLUTION OF THE CITY OF THE COLONY AUTHORIZING INTERVENTION IN GAS UTILITIES DOCKET 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 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 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 piecemeal ratemaking through a surcharge; and WHEREAS, pursuant to Utilities Code § 103.023, municipalities have standing to intervene in this case; and WHEREAS, pursuant to Utilities Code § 103.022, municipalities are entitled to reimbursement of their reasonable costs of participation; NOW THEREFORE, BEE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS: I. That the City Council of the municipality of the City of The Colony, Texas, authorizes Robert S. Sparkman, Purchasing Agent, 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 council and engage consultants, and to intervene on behalf of the City in related dockets and appeals. II. That the Steering Committee formed to oversee this effort on behalf of cities in 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. III. That LSP is hereby directed to promptly pay cities' rate case expenses as they are incurred. IV. 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: Mr. Jay B. Doegey City Attorney City of Arlington Post Office Box 231 Arlington, Texas 76004-0231 For forwarding to the Steering Committee. PRESENTED AND PASSED on this the 3rd day of June, 2002, by a vote of ~ ayes and ~ys at a regular meeting of the City Council of the City of The Colony, Texas. Bemetta Henvllle Shanno , Mayor ATTEST: Patti A. Hicks, City Secretary APPROVED AS TO FORM: ~/Gordo~/C'~t3; AttorneY