Loading...
HomeMy WebLinkAboutOrdinance No. 05-1606 ORIGINAL ORDINANCE NO. 05- J~0b AN ORDINANCE OF THE CITY OF THE COLONY, TEXAS FINDING, AFTER REASONABLE NOTICE, THAT CERTAIN RATE CASE EXPENSES OF COSERV GAS LTD. ARE REASONABLE; PROVIDING FOR RECOVERY OF RATE CASE EXPENSES; PROVIDING FOR REPEAL OF CONFLICTING ORDINANCES WHEREAS, on or about August 25, 2004, CoServ Gas Ltd. ("CoServ" or "Company"), filed with the City of The Colony, Texas a Statement of Intent to change gas rates in all municipalities within the CoServ System effective October 1,2004; and 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 SS 102.001(b) and 103.001; and WHEREAS, the Company and the Coalition of Cities Served by CoServ ("Cities") reached an agreement as to CoServ's filed request to increase rates; and WHEREAS, the agreement between the Company and the Cities was finally approved by the City of The Colony by Resolution Number 05-14 dated January 17, 2005 and WHEREAS, the issue of rate case expenses incurred by the Company was severed from the Ordinance approving the agreement; and WHEREAS, the City has retained jurisdiction over the rate case expense reimbursement issue as a result of extensions of the jurisdictional deadline by CoServ, pursuant to said agreement; and WHEREAS, the City has previously determined that the Cities' rate case expenses are reasonable and should be reimbursed by CoServ; and WHEREAS, the Cities' rate case expenses do not include the expenses incurred by the City of Denton and Denton has agreed that its rate case expenses shall be billed to the Company separately by that city and shall not be surcharged to any customers outside the City of Denton; and WHEREAS, the amount of rate case expenses incurred by the Company that were reasonable and necessary are $260,041.00. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS: SECTION 1. That the Cities' rate case expenses have previously been found to be reasonable and shall be reimbursed promptly by the Company. SECTION 2. That it is in the best interest of the City and its residents to approve rate case expenses incurred by CoServ Gas Ltd., in the total amount of $260,041.00 and only those Company expenses are hereby found to be reasonable and necessary. 2061\OI\ord050803 1 SECTION 3. That the Company is authorized to recover the rate case expenses reimbursed to the Cities, exclusive of those incurred by the City of Denton, and the Company's rate case expenses approved herein through a consumption-based l2-month surcharge calculated on a system-wide basis. The surcharge shall be based upon anticipated system-wide volumetric consumption for the calendar year 2005, estimated by the Company to be 28,949,610 Ccf. SECTION 4. That after submission ofthe Cities' expenses, the Company shall calculate the surcharge and submit the calculation to the City. Six months after the first date on which any rate case expense surcharge is due from customers, the Company shall submit a statement to the City showing the amount recovered by the Company through the surcharge and the amount remaining to be recovered. The Company shall also submit a final reconciliation to the City, not more than thirty (30) days after one year from the first date on which any rate case expense surcharge is collected by the Company, to prove that the Company has not over-recovered rate case expenses. Any over- recovery shall be promptly refunded by the Company. The Company may submit the initial calculations and progress reports to the Cities' rate steering committee chairman and legal counsel to comply with this provision, unless the City makes a written request that the calculations and reports be submitted to the City. SECTION 5. That all relief requested by CoServ not specifically addressed herein is denied. SECTION 6. 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 7. That a copy of this ordinance, constituting final action on rate case expense issues resulting from the CoServ Statement of Intent filed with the City to change gas rates in all municipalities within the CoServ System, be forwarded to the appropriate designated representative of the Company, Charles D. Harrell, Chief Financial Officer, CoServ Gas Ltd., 7701 South Stemmons, Corinth, Texas 76210-1842, within ten (10) days. SECTION 8. Nothing contained in this Ordinance shall be construed now or hereafter as limiting or modifying, in any manner, the right and power of the City under law to regulate the rates and charges of CoServ Gas Ltd. SECTION 9. All ordinances, resolutions, or parts thereof, in conflict with this Ordinance are repealed to the extent of such conflict. DULY PASSED and approved by the City Council of the City of The Colony, Texas, on this the 15th day of August, 2005. APPROVED: Dillard, Mayor y of The Colony 2061 \0 1 \ord050803 2 2061 \01 \ord050803 3