HomeMy WebLinkAboutItem 12 - TXU Electric and Gas Rate CaseMEMO TO:
FROM:
MEETING DATE:
SUBJECT:
RECOMMENDATION:
ITEM 0 _
HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
ROGER NELSON, CITY MANAGER �v
MARCH 20, 2001
TXU ELECTRIC AND GAS RATE CASE
City Council to consider approval of a resolution to authorize participation in the TXU
Steering Committee and to suspend the proposed effective date of the new rates.
FUNDING SOURCE:
The City will not assume any costs for participation in the Steering Committee or the rate
analysis. The City of Arlington will provide for any immediate expenses and will be
reimbursed by TXU when the analysis is completed and any negotiations are finalized.
BACKGROUND:
On February 16, 2001, TXU Gas Distribution (formerly Lone Star Gas Company) filed a
Statement of Intent with 40 cities to increase the rates charged for natural gas service.
The TXU request involves the consolidation of the Northwest Metro/Mid-Cities
Distribution Systems and will affect forty cities including Addison, Argyle, Arlington,
Aubrey, Bedford, Carrollton, Colleyville, Coppell, Copper Canyon, Corinth, Cross Roads,
Dalworthington Gardens, Denton, Double Oak, Euless, Farmers Branch, Flower Mound,
Grapevine, Hickory Creek, Highland Village, Hurst, Irving, Justin, Keller, Krum, Lake
Dallas, Lewisville, Lincoln Park, Mansfield, Marshall Creek, Northlake, Pantego, Pilot
Point, Ponder, Roanoke, Sanger, Shady Shores, Southlake, Trophy Club, Westlake.
The rate change proposed would result in average system wide increase of 5.1% or
$10.16 million.
The attached resolution authorizes the City to participate jointly with other cities in the
Distribution System to independently analyze the TXU filing. To provide for time to
complete such an analysis, the resolution also suspends the proposed effective date of
the gas rates for ninety days.
The Utilities Committee and the Staff recommend approval of the resolution.
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March 15, 2001 (7:37AM)
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
GRAPEVINE, TEXAS, AUTHORIZING THE STEERING
COMMITTEE OF NORTHWEST METRO/MID-CITIES
DISTRIBUTION SYSTEM CITIES TO RETAIN LEGAL
COUNSEL AND RATE CASE CONSULTANTS;
AUTHORIZING THE CITIES TO INTERVENE IN RELATED
DOCKETS BEFORE THE TEXAS RAILROAD
COMMISSION; SUSPENDING THE PROPOSED TARIFF
AND SCHEDULE OF RATES OF TXU ELECTRIC AND GAS
COMPANY; AND PROVIDING AN EFFECTIVE DATE
WHEREAS, TXU Gas Distribution, a division of TXU Gas Company, ("TXU") on
February 16, 2001 filed a Statement of Intent to Change Rates with individual cities for an
increase in rates; and
WHEREAS, the City of Grapevine, Texas, (the City) is a regulatory authority
having a statutory duty to participate in such proceedings and whose citizens will be
substantially affected by the rates established as a result of such proceedings; and
WHEREAS, the City is entitled to be reimbursed for its reasonable expenses
pursuant to the Texas Gas Utilities Regulatory Act; and
WHEREAS, the Steering Committee of Northwest Metro/Mid-Cities Distribution
System Cities has been formed to facilitate and coordinate the participation of cities in the
service area of TXU Gas Company in these rate proceedings; and
WHEREAS, after having considered information from TXU, it is the opinion of the
City Council of the City of Grapevine, Texas, that the proposed Schedule of Rates should
be suspended for a period of ninety (90) days from the effective date stated in TXU's
Statement of Intent or other documentation, as initially filed or hereafter revised, for
further study, investigation, presentation of evidence and public hearing; and
WHEREAS, it is in the public interest to join with other cities to review such filing
and present evidence as may be appropriate before the Railroad Commission, all as
directed by the Cities' Steering Committee.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF GRAPEVINE, TEXAS:
Section 1. That all of the above premises are found to be true and correct and
are incorporated into the body of this resolution as if copied herein in their entirety.
Section 2. That the City Manager is authorized to join into a consortium of cities
representing Grapevine and Mid -Cities Lone Star Gas Distribution System for the
purpose of rate regulation.
Section 3. That the City Council authorizes the Steering Committee to retain
legal counsel and engage rate consultants and to intervene on behalf of the City of
Grapevine in related dockets.
Section 4. That the Steering Committee is authorized to review filings and to
intervene at the Texas Railroad Commission subject to the right to terminate such
participation at any time by written notice and to act independently in the exercise of local
regulatory authority.
Section 5. That this resolution shall take effect from and after the date of its
passage.
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF
GRAPEVINE, TEXAS on this the 20th day of March, 2001.
ATTEST:
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