HomeMy WebLinkAboutORD 2002-041 ORDINANCE NO. 2002-41
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF GRAPEVINE, TEXAS DENYING TXU GAS
DISTRIBUTION'S REQUEST TO CHANGE RATES IN THE
NORTH TEXAS METROPLEX DISTRIBUTION SYSTEM;
REQUIRING PROMPT REIMBURSEMENT OF CITIES'
RATE CASE EXPENSES, PROVIDING A SEVERABILITY
CLAUSE AND PROVIDING AN EFFECTIVE DATE
WHEREAS, on or about March 1, 2002, TXU Gas Distribution, a division of TXU
Gas Company filed with the City of Grapevine a Statement of Intent to change gas rates
in all municipalities within the North Texas Metroplex Distribution System effective April
5, 2002; and
WHEREAS, the City of Grapevine suspended the effective date of the proposed
new rates for 90 days to evaluate the reasonableness of existing rates and the merits of
TXU's proposed changes; and
� WHEREAS, the City of Grapevine participated with other municipalities in a
comprehensive review of TXU Gas Distribution's application; and
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WHEREAS, consultants and counsel retained by the coalition of cities have
recommended denial of the Company's application based upon a report from
consultants demonstrating that the revenue requirement of the North Texas Metroplex
Distribution System is being met under current rates; and
WHEREAS, that recommendation has been endorsed by the Steering Committee
of city representatives who have coordinated the review of TXU Gas Distribution's rate
application; and
WHEREAS, the Gas Utilities Regulatory Act provides that costs incurred by
Cities in ratemaking activities are to be reimbursed by the regulated utility.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF GRAPEVINE, TEXAS:
Section 1. That the TXU Gas Distribution's Statement of Intent to change gas
rates within the North Texas Metroplex Distribution System be, all respects, denied.
_ Section 2. That the costs incurred by Cities in reviewing TXU's application be
promptly reimbursed by the Company.
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� _ Section 3. That a copy of this ordinance, constituting final action on TXU's
application be sent to Autry Warren, Rates Manager, TXU Gas Distribution, 1601 Bryan
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Street, Dallas, TX 75201-3402.
Section 4. If any section, article, paragraph, sentence, clause, phrase or word
in this ordinance, or application thereto by a Court of competent jurisdiction, such
hotding shall not affect the validity of the remaining portions of this ordinance; and the
City Council hereby declares it would have passed such remaining portions of the
ordinance despite such invalidity, which remaining portions shall remain in full force and
effect.
Section 5. The fact that the present ordinances and regulations of the City of
Grapevine, Texas are inadequate to properly safeguard the health, safety, morals,
peace and general welfare of the public creates an emergency which requires that this
ordinance become effective from and after the date of its passage, and it is accordingly
so ordained.
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF
GRAPEVINE, TEXAS on this the 18th day of June, 2002.
APPROVED:
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William D. Tate
Mayor
ATTEST:
Linda Huff
City Secretary
APPROVED AS TO FORM:
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John F. Boyle, Jr.
a� F City Attorney
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ORD NO. 2002-4� 2