HomeMy WebLinkAboutResolution No. 04-78 oq o3 8
RESOLUTION OF THE CITY OF THE COLONY, TEXAS
SUSPENDING THE EFFECTIVE DATE OF COSERV GAS
LID'S REQUESTED RATE CHANGES TO PERMIT THE
CITY TIME TO STUDY THE REQUEST AND TO ESTABLISH
REASONABLE RATES; APPROVING COOPERATION WITH
OTHER CITIES WITHIN THE COSERV SYSTEM TO HIRE
LEGAL AND CONSULTING SERVICES AND TO
NEGOTIATE WITH THE COMPANY AND DIRECT ANY
NECESSARY LITIGATION; REQUIRING REIMBURSEMENT
OF CITIES' RATE CASE EXPENSES; AUTHORIZING
INTERVENTION IN THE PROCEEDING AT THE RAILROAD
COMMISSION; REQUIRING NOTICE OF THIS RESOLUTION
TO THE COMPANY
WHEREAS, on or about August 25, 2004, CoServ Gas Ltd. ("CoServ'), filed with the
City of The Colony, Texas a Statement of Intent to change gas rates in all municipalities within
the CoServ System; and
WI-tEREAS, it is reasonable for the City of The Colony to cooperate with other cities in a
review of the Company's application and to coordinate the hiring and direction of legal counsel
and consultants and to negotiate with the Company and direct any necessary litigation; and
WHEREAS, the Gas Utility Regulatory Act grants local regulatory authorities the fight to
suspend the effective date of proposed rate changes; and
WHEREAS, the Gas Utility Regulatory Act provides that costs incurred by Cities in
ratemaking activities are to be reimbursed by the regulated utility; and
WHEREAS, the Gas Utility Regulatory Act grants local regulatory authorities the right to
intervene in rate proceedings filed at the Railroad Commission.
THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF THE
COLONY, TEXAS:
1. That the effective date of the tariff changes submitted by CoServ on or about
August 25, 2004, be suspended to permit adequate time to review the proposed changes and to
establish reasonable rates.
2. That the City is authorized to cooperate with other Cities within the CoServ
System to hire and direct legal counsel and consultants, negotiate with the Company, make
recommendations regarding reasonable rates and to direct any necessary litigation associated
with an appeal of a rate ordinance and the rate case filed at the Railroad Commission.
3. That the City's reasonable rate case expenses shall be reimbursed by CoServ.
4. That the City is authorized to intervene in any appeal at the Railroad Commission
regarding CoServ's rate case filed on or about August 25, 2004.
5. That a copy of this suspension resolution be sent to Charles D. Harrell, Chief
Financial Officer, CoServ Gas Ltd, 7701 South Stemmons, Corinth, Texas 762~1842.
Jo]~ ~i]l-~, M~-Ci~t~ or'The Colony
ATTEST:
'~ssiie Wilson, City Secretary
2