HomeMy WebLinkAboutResolution No. 04-51 RESOLUTION NO. 0 ~-
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF THE COLONY
AUTHORIZING PARTICIPATION WITH OTHER CITIES 1N STUDYING
POSSIBILITIES FOR MUNICIPALIZATION OF GAS DISTRIBUTION
SERVICES; AUTHORIZING SAD COALITION TO RETAIN COUNSEL
AND CONSULTANTS; AUTHORIZING LEGAL COUNSEL TO THE
ALLIED COALITION OF CITIES TO ENTER INTO DISCUSSIONS WITH
TXU AND THE ULTIMATE PURCHASERS OF TXU'S GAS UTILITIES
ASSETS; AUTHORIZING PAYMENT FROM FUNDS RETAINED BY THE
STEERING COMMITTEE OF CITIES SERVED BY TXU GAS
WHEREAS, the City of The Colony is a regulatory authority with original jurisdiction
over the rates and services of TXU Gas Distribution; and
WHEREAS, the City's significant interest in the fairness and reasonableness of gas
distribution rates and services is demonstrated in its participation in the 137 member Allied
Coalition of Cities' efforts in the recent TXU Gas rate case before the Railroad Commission of
Texas, known as GUD No. 9400; and
WHEREAS, TXU Corporation has announced its intent to sell all its gas assets and has
further announced that the bid process for such sale is closed; and
WHEREAS, the transfer of gas distribution assets from TX[J to a new owner presents an
unique opportunity and environment in which to study the possibility of municipalization of the
gas distribution system within the city; and
WHEREAS, it would be wise to initiate regulatory and customer contact as soon as
possible with any intended new owners or successors in interest of TXU Gas assets; and
WHEREAS, there are efficiencies to be gained by joining with other Cities in an
evaluation of municipalization and in initiating discussions with prospective new owners of
TXU's gas assets;
THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF The
Colony:
1. That the City is hereby authorized to participate in a coalition of other cities
served by TXU Gas, including but not limited to members of the Allied Coalition of Cities that
intervened in TXU's recently completed rate case, that will jointly study possibilities for
municipalization of the gas distribution system from either a regional system or individual city
approach.
2. That said coalition is authorized to retain legal counsel and consultants as deemed
appropriate by the representatives of participating cities.
3. That rate counsel to ACC, Geoffrey Gay and the law firm of Lloyd, Gosselink,
Blevins, Rochelle, Baldwin & Townsend, P.C. is authorized to enter into discussions with TXU
and the ultimate purchaser or purchasers of TXU Gas assets for the purpose of investigating
municipalization or establishing appropriate regulatory and franchising arrangements.
4. That costs associated with Coalition efforts implementing this resolution are
authorized to be paid from funds currently retained by the Steering Committee of Cities Served
by TXU Gas.
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