HomeMy WebLinkAboutItem 09 - TXU Lone Star PipelineITEM N _ q _ nNowaft
MEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: ROGER NELSON, CITY MANAGER l J1�
MEETING DATE
SUBJECT:
RECOMMENDATION:
JANUARY 4, 2000
TXU LONE STAR PIPELINE — RESOLUTION FOR
INTERVENTION
City Council approve a resolution authorizing the City Manager to participate in the
steering committee of cities served by TXU Lone Star Pipeline for intervention in GUD
NO. 8976, the application to the Railroad Commission to increase the city gate rate.
FUNDING SOURCE:
The City of Grapevine will not incur any cost for participation.
BACKGROUND:
TXU Lone Star Gas has filed an application to increase the city gate rate with the
Railroad Commission. The "gate rate" is monitored by the Railroad Commission and
represents the amount charged to transport natural gas from its source to the "gate" or
entry of Grapevine.
The filing would increase rates by $20.4 million (16% increase) and result in increased
charges of approximately 15 cents per Mcf. The average monthly residential
consumption on most Lone Star distribution systems varies from 4 to 6 Mcf, meaning
that most residential customers would experience an average monthly increase of .60 to
.90 cents. Lone Star claims that the average residential user will see a 75 cent per
month increase.
The steering committee through Geoffrey Gay, of Butler, Porter, Gay & Day, will
coordinate the hiring of consultants to propose an alternative case, present information
at public hearings and file legal briefs with the Railroad Commission. The Railroad
Commission will then issue a final order on the rate case at the end of May 2000.
December 28, 1999 (4:20PM)
The steering committee currently has funds available for the consultants' review.
However, in the event that additional funds are requested from the participating cities, all
the costs will be reimbursed by TXU Lone Star Pipeline (as required by law).
The Staff and City Attorney recommend approval of the resolution in order to help
ensure that our residents and TXU customers receive fair and reasonable rates.
December 28, 1999 (4:20PM)
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
GRAPEVINE, TEXAS AUTHORIZING INTERVENTION IN
GUD NO. 8976, TXU LONE STAR PIPELINE'S
APPLICATION TO THE RAILROAD COMMISSION TO
INCREASE ITS CITY GATE RATE; FUTHER
AUTHORIZING PARATICIPATION WITH THE STEERING
COMMITTEE OF CITIES SERVED BY LONE STAR IN
PROCEEDING BEFORE THE RAILROAD COMMISSION
OR SUBSEQUENT APPEALS; REQUIRING RATE CASE
EXPENSE REIMBURSEMENT OF REASONABLE COSTS
INCURRED BY THE STEERING COMMITTEE FOR
ATTORNEYS, CONSULTANTS AND WITNESSES AND
OTHER ASSOCIATED COSTS; AND PROVIDING AN
EFFECTIVE DATE
WHEREAS, the city of Grapevine pursuant to GURA §103.023 has standing in
each case before the Railroad Commission that relates to a gas utility's rates and
services in the municipality; and
WHEREAS, on October 29, 1999 TXU Lone Star Pipeline filed a proceeding with
the Railroad Commission (GUD NO. 8976) to increase its city gate rate revenues by
$20.4 million; and
WHEREAS, the City of Grapevine and its residents may be adversely impacted
by increases in the city gate rate; and
WHEREAS, the City of Grapevine is entitled pursuant to GURA § 103.22 to
reimbursement of its reasonable costs associated with participation in rate making
proceedings; and
WHEREAS, the Steering Committee of Cities served by Lone Star is a standing
committee with representatives from numerous Cities that are experienced in
employing, directing and coordinating efforts of lawyers, consultants and expert
witnesses working on behalf of cities in regulatory proceedings.
NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF GRAPEVINE, TEXAS THAT:
Section 1. That the City of Grapevine is authorized to intervene in Railroad
Commission GUD NO. 8976.
Section 2. That the City of Grapevine will participate with other Cities in GUD
NO. 8976 and in any subsequent appeals of that administrative through involvement
with the Steering Committee of Cities Served by Lone Star. The Steering Committee is
authorized to retain attorneys, consultants and expert witnesses that may be necessary
to protect the interests of cities and their residents.
Section 3. That Lone Star shall promptly reimburse reasonable costs incurred
by the Steering Committee of Cities Served by Lone Star for efforts undertaken in GUD
NO. 8976.
Section 4. That a copy of this resolution shall be sent to Jay Doegey, City
Attorney of Arlington, Texas and Chairman of the Steering Committee of Cities Served
by Lone Star, 200 W. Abram Drive, Arlington, Texas 76010; fax number 817-453-6897.
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, TEXAS on this the 4th day of January, 2000.
ATTEST:
LAIWa
RES. NO.
2
APPROVED: