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:
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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