HomeMy WebLinkAboutOrdinance No. 03-1478 ORDINANCE NO. ~'~ 3~/4 7~
AN ORDINANCE OF THE CITY OF THE COLONY~ TEXAS~
DENYING TXU GAS COMPANY'S REQUEST TO CHANGE
RATES IN THIS MUNICIPALITY~ 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, o n o r a bout M ay 2 3, 2 003, T XU G as Company (the "Company")
filed with the City of The Colony, Texas ("City"), a Statement of Intent to change gas
rates in all municipalities within the Company's statewide gas utility system effective
June 27, 2003;
WHEREAS, the City has previously extended the effective date of the Company's
rate filing;
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;
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;
WHEREAS, the City is participating with a coalition of over 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;
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;
WHEREAS, ACC and TXU jointly endorse the City's denial of the Company's
rate application pending before the City;
WHEREAS, counsel for A CC, u pon review o f t he Company's filing a nd u pon
consultation with various consultants, recommends findings that the Company's proposal
is unjustified and unreasonable; and
NOW, THEREFORE, BE IT ORDAiNED BY THE CITY COUNCIL OF THE
CITY OF THE COLONY, TEXAS:
SECTION 1. 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 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. The costs incurred by the City in reviewing the Company's
application be promptly reimbursed by the Company.
SECTION 3. 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. 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.
DULY PASSED and approved by the City Council of the City of The Colony,
Texas, on this the 21st day of July, 2003.
APPROVED:
/~ Mc(J~zy, Mayor P~m
Patti A. Hicks, City Secretary
APPROVED AS TO FORM: