HomeMy WebLinkAboutOrdinance No. 99-1120ORIGM
CITY OF THE COLONY, TEXAS
ORDINANCE NO. q 'f 1,0d
AN ORDINANCE OF THE CITY OF THE COLONY, TEXAS
SUSPENDING THE RATE INCREASE PROPOSED IN THE
STATEMENT OF INTENT FILED BY LONE STAR GAS COMPANY ON
MAY 7, 1999, FOR 90 DAYS BEYOND THE INTENDED EFFECTIVE
DATE OF JUNE 14, 1999; PROVIDING A SEVERABILITY CLAUSE;
AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, on May 7, 1999, Lone Star Gas Company, a division of Enserch
Corporation, filed with the City of The Colony, Texas (the "City") a "Statement on Intent to
Change Rates" pursuant to Sections 104.101 to 104.111, Texas Utilities Code (the "Code") in
which Lone Star Gas seeks, among other things, to increase annual revenue on the Northeast
Metro Distribution System (of which the City is a part) and to implement various automatic rate
adjustment clauses effective June 14, 1999; and
WHEREAS, the City has elected to regulate and supervise a gas utility in is municipal
limits and pursuant to Section 103.001 of the Code has exclusive original jurisdiction over the
rates, operations and services of Lone Star Gas Company within its municipal limits; and
WHEREAS, pursuant to Section 104.107 of the Code, the City may suspend the
proposed effective date of new rate schedules for a period not to exceed 90 days beyond the date
which the schedule of proposed rates would otherwise go into effect; and
WHEREAS, it is necessary for the City to review the legality, reasonableness and
propriety of Lone Star Gas' proposed changes; and
WHEREAS, the said review can be performed efficiently under the direction of a
Steering Committee of representatives from the Northeast Metro Cities; and
WHEREAS, Sections 103.021 and 103.022 of the Code authorize a municipality to
retain personnel necessary to make a determination of reasonable rates and to be reimbursed for
the expense of such assistance by the regulated utility.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY OF THE COLONY,
TEXAS:
Section 1. The rate increase and rate schedules filed by Lone Star Gas Company with
the City and proposed to become effective on June 14, 1999 are hereby suspended for a period of
90 days beyond the date on which the schedule of proposed rates would otherwise have gone into
effect (such 90 day period ending on September 12, 1999), for the reasons that:
(a) It is necessary to evaluate the reasonableness of Lone Star Gas Company's
proposed increase in rates; and
(b) It is necessary to evaluate the legality and reasonableness of Lone Star Gas
Company's proposed transformation of traditional regulatory concepts with various automatic
adjustment clauses.
Section 2. Subject to the City's right to terminate employment at any time, the City
Attorney is hereby authorized to retain the law firm of Butler, Porter, Gay & Day and other
qualified consultants to review the Lone Star Gas Company filing, prepare a report to the City
Council, and to handle any possible appeal of a City Ordinance to the Railroad Commission or
courts.
Section 3. Lone Star Gas Company shall reimburse the City expenses in this matter
on a monthly basis.
Section 4. This Ordinance shall become effective from and after its date of passage.
�EoPASSED AldNp APPROVED by the City Council of the City of The Colony, Texas this
day of '1999.
� n
Mayor William Manning
City of The Colony, Texas
ATTEST:
By:
Patti Hicks, City Secretary
APPROVED AS TO FORM:
By:
J Hill, City Attorney