HomeMy WebLinkAboutORD 2003-051 ORDINANCE NO. 2003-51
�� ' AN ORDINANCE OF THE CITY OF GRAPEVINE,
TEXAS, DENYING TXU GAS COMPANY'S
REQUEST TO CHANGE RATES IN THIS
MUNICIPALITY, AS A PART OF THE COMPANY'S
STATEWIDE GAS UTILITY SYSTEM; PROVIDING A
REQUIREMENT FOR A PROMPT
REIMBURSEMENT OF COSTS INCURRED BY THE
CITY; FINDING THAT THE MEETING AT WHICH
THIS ORDINANCE IS PASSED IS OPEN TO THE
PUBLIC AS REQUIRED BY LAW; AND PROVIDING
FOR NOTICE OF THIS ORDINANCE TO TXU GAS
COMPANY
WHEREAS, on or about May 23, 2003, TXU Gas Company (the
"Company") filed with the City of Grapevine ("City"), a Statement of Intent to
change gas rates in all municipalities within the Company's statewide gas utility
system effective June 27, 2003; and
WHEREAS, the City has previously extended the effective date of the
Company's rate filing; and
WHEREAS, the City has exclusive original jurisdiction to evaluate the
Company's Statement of Intent as it pertains to the distribution facilities located
within the City, pursuant to Texas Utilities Code §§ 102.001(b) and 103.001; and
WHEREAS, the Texas Utilities Code § 103.022 provides that costs
incurred by the City in ratemaking activities are to be reimbursed by the regulated
utility; and
WHEREAS, the City is participating with a coalition of over 120 other
Cities in opposition to the Company's filing at the Railroad Commission, said
coalition being known as Allied Coalition of Cities ("ACC"), in GUD No. 9400
pending at the Commission; and
WHEREAS, ACC and the Company have reached a procedural
agreement regarding the schedule for processing GUD No. 9400 that includes
TXU's concession to allow one hundred fifteen (115) additional days to process
the rate case and ACC's commitment that member Cities expedite the process of
getting city action appealed to the Commission; and
WHEREAS, ACC and TXU jointly endorse the City's denial of the
�� , Company's rate application pending before the City; and
WHEREAS, upon review of the Company's filing and consultation with
counsel for ACC and various consultants, the City finds that the Company's
proposal is unjustified and unreasonable.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE
CITY OF GRAPEVINE, TEXAS:
Section 1. That all matters stated in the preamble are hereby found to
be true and correct and are incorporated herein by reference as if copied in their
entirety.
Section 2. The Company's Statement of Intent to change gas rates
within the City, as part of the Company's statewide gas utility system, is found to
be unreasonable because: (a) TXU's requested return on equity is excessive,
generating more than 86% of the requested increase in rates; (b) the basis for
TXU's proposed consolidations (of regional distribution systems and of pipeline
costs with distribution costs) has not been established; (c) the City's jurisdiction
to increase pipeline rates has not been established and, therefore, the proposed
pipeline cost increases should be disallowed; (d) revenue requirements should
be reduced rather than increased; and (e) the TXU filing should be denied
pursuant to agreement with the Company; and is therefore denied in all respects.
Section 3. The costs incurred by the City in reviewing the Company's
��° application be promptly reimbursed by the Company.
Section 4. This Ordinance shall become effective immediately from and
after its passage, as allowed by law.
Section 5. That it is hereby officially found and determined that the
meeting at which this Ordinance is passed is open to the public as required by
law and that public notice of the time, place and purpose of said meeting was
given as required.
Section 6. A copy of this ordinance, constituting final action on the
Company's application, shall be forwarded to the appropriate designated
representative of the Company within 10 days as follows: Autry L. Warren,
Director Gas Regulatory, TXU Business Services, 1601 Bryan Street, Dallas,
Texas 75201-3402.
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF
GRAPEVINE, TEXAS, on this the 19th day of August, 2003.
ORD NO. 2003-51 2
APPROVED:
�
William D. Tate �
Mayor
ATTEST:
w� ' �'V�'`�
J d' C. B row n
istant City Secretary
APPROVED AS TO FORM:
.. ��y���
John F. Boyle, Jr.
�_ .. City Attorney
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ORD NO. 2oo3-5i 3