HomeMy WebLinkAboutResolution No. 09-029
CITY OF THE COLONY
RESOLUTION NO. 09-029
RESOLUTION OF THE CITY OF THE COLONY
DENYING COSERV GAS LTD.'S REQUESTED RATE
CHANGES; AUTHORIZING INTERVENTION IN ANY
NECESSARY PROCEEDINGS AFFECTING CITY'S
INTERESTS BEFORE ADMINISTRATIVE OR JUDICIAL
BODIES; REQUIRING REIMBURSEMENT OF
REASONABLE LEGAL AND CONSULTANT EXPENSES;
FINDING THAT THE MEETING AT WHICH THIS
RESOLUTION IS ADOPTED IS OPEN TO THE PUBLIC AS
REQUIRED BY LAW; AND REQUIRING DELIVERY OF
THIS RESOLUTION TO THE COMPANY AND LEGAL
COUNSEL.
WHEREAS, the City of The Colony ("City") is a regulatory authority under the Gas
Utility Regulatory Act ("GURA") 102.001(b) and 103.001 and has original jurisdiction over
the gas utility rates of CoServ Gas Ltd.'s ("CoServ" or the "Company"); and
WHEREAS, on or about December 18, 2008, CoServ filed with the City a Statement of
Intent to increase gas rates in all municipalities within the CoServ System; and
WHEREAS, the City took action to suspend the January 23, 2009 effective date of
CoServ's Statement of Intent for the maximum period allowed by law and to join with other
cities served by CoServ ("CoServ Cities") to hire a rate expert and legal counsel to evaluate the
Company's support for its requested rate increase; and
WHEREAS, approximately $2.4 million to $2.8 million of the Company's requested $2.9
million increase is related to its requested rate of return and proposed capital structure, which
does not appear to be reasonably supported by actual operations; and
WHEREAS, based upon the analysis and recommendation of the CoServ Cities' expert
and legal counsel, the City finds that the Company has not satisfactorily established that it is
entitled to increase its rates; and
WHEREAS, GURA § 103.022 provides that costs incurred by cities in ratemaking
activities are to be reimbursed by the regulated utility.
THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF THE
COLONY, TEXAS:
1. That the Company's Statement of Intent to increase gas utility rates within the
City be denied in all respects.
2. That the Company shall continue to charge its existing rates for natural gas
services to customers within the City.
1
3. That the City's reasonable rate case expenses shall be reimbursed by CoServ.
4. That it is hereby officially found and determined that the meeting at which this
Resolution is passed is open to the public as required by law and the public notice of the time,
place, and purpose of said meeting was given as required.
5. A copy of this Resolution shall be sent to Charles D. Harrell, Chief Financial
Officer, CoServ Gas Ltd., 7701 South Stemmons, Corinth, Texas 76210-1842 and to Kristen
Doyle, counsel for Cities Served by CoServ at Lloyd Gosselink Rochelle & Townsend, P.C., 816
Congress Avenue, Ste. 1900, Austin, Texas 78701.
Jo Dillard, Mayor, City of The Colony
AT EST: X Christie Wilson, City Secretary
z-~
2