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HomeMy WebLinkAboutRES 2002-021 RESOLUTION NO. 2002-21 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS AUTHORIZING INTERVENTION IN GAS UTILITIES DOCKET 9304 AT THE RAILROAD COMMISION; AUTHORIZING PARTICIPATION IN A STEERING COMMITTEE WITH OTHER CITIES SERVED BY TXU AND REQUIRING REIMBURSEMENT FROM TXU LONE STAR PIPELINE OF CITIES REASONABLE RATE CASE EXPENSES AND PROVIDING AN EFFECTIVE DATE WHEREAS, TXU Lone Star Pipeline (LSP) filed a statement of Intent with the Railroad Commission (designated as GUD 9304) on May 8th, 2002 requesting authority to establish a monthly fee to recover future, unpredictable expenses associated with implementation of a pipeline integrity and safety assessment (ISA) program; and WHEREAS, the requested surcharge in GUD 9304 will have an immediate impact of $1.25 to $2.50 annually per residential customer, with the potential for much higher increases in the future becoming automatic once the surcharge mechanism is approved and becomes a precedent for automatic pass through of costs associated with a pipeline safety cost recovery program; and WHEREAS, Cities served by TXU have a history of cooperation in gas rate matters and such cooperation in GUD 9304 will be efficient and cost effective in evaluating whether the proposed pipeline integrity and safety assessment program is reasonable and necessary, and whether associated costs should be recovered in piecemeal ratemaking through a surcharge; and WHEREAS, pursuant to Utilities Code § 103.023, municipalities have standing to intervene in this case; and WHEREAS, pursuant to Utilities Code § 103.022, municipalities are entitled to reimbursement of their reasonable costs of participation. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS: Section 1. That the City Council of the Grapevine, Texas authorizes the City Manager or his designee to represent the City on the Steering Committee of affected cities (hereinafter called "Steering Committee") and authorizes the Steering Committee of which the City is participating member, to retain legal counsel and engage consultants, and to intervene on behalf of the City in related dockets and appeals. Section 2. That the Steering Committee formed to oversee this effort on behalf of cities is authorized to take all reasonable steps before the Railroad Commission and before the Courts as may be necessary in an appeal of a Commission Order. Section 3. That LSP is hereby directed to promptly pay cities' rate case expenses as they are incurred. Section 4. That the City Secretary shall cause copies of this resolution to be sent to the TXU representative: Autry Warren, Rate Manager TXU Gas Distribution 1601 Bryan Street Dallas, TX 75201-3402 And to: Jay B. Doegey City Attorney City of Arlington PO Box 231 Arlington, TX 76004-0231 For forwarding to the Steering Committee. Section 5. That this resolution shall become effective from and after the date of its passage. PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF GRAPEVINE on this the 18th day of June, 2002. APPROVED: -*' 7 ,)/gP—.-- William D. Tate Mayor ATTEST: Lind Huff I#4i5 City Secretary RES. NO. 2002-21 2 APPROVED AS TO FORM: John F. Boyle, Jr. City Attorney RES. NO. 2002-21 3