HomeMy WebLinkAboutItem 08 - TXU Gas Rate FilingITEM #
MEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: ROGER NELSON, CITY MANAGER
MEETING DATE: MARCH 19, 2002
SUBJECT: TXU GAS RATE FILING
RECOMMENDATION:
City Council consider approval of a resolution suspending the effective date of the TXU
Gas Distribution Company's proposed rate increase, to authorize participation in the
steering committee, and to authorize participation in an independent analysis of the rate
case through the retention of legal counsel and rate case consultants.
FUNDING SOURCE:
It should be noted that all the costs associated with the analysis are reimbursable by
TXU to the City of Grapevine at the end of the case as provided by state law. There will
be no immediate impact to franchise fee collection.
BACKGROUND:
On March 1, 2002, the TXU Gas Distribution Company filed a request for authority to
increase the rates charged for natural gas service in the North Texas Metroplex
Distribution System. These systems include 107 municipalities throughout the DFW
metro area (see attached list).
Specifically, the proposed new rates would increase current rates by almost $34 million
in the North Texas Metroplex Distribution System. The rate increase will impact each of
the effected cities differently, but they will all see changes in the rates of each class of
service. The City of Grapevine's average increase is outlined below:
City
Residential
Percent
Increase
Commercial
Percent
Increase
Industrial
Percent
Increase
Total
Amount
Percent
Increase
Grapevine
$428,218
11.60%
$183,212
6.50%
$64,002
20.60%
$675,432
9.81%
The average increase is comparable to the cities in our immediate Northeast Tarrant
County area.
March 13, 2002 (4:48PM)
The attached resolution authorizes the City to participate jointly with other cities on the
" Steering Committee in the distribution system, to independently analyze the gas rate
filing as well as to suspend the effective date of the increase for ninety days.
Staff recommends approval of the resolution.
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March 13, 2002 (8:43AM)
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�URESOLUTION NO.
U
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
GRAPEVINE, TEXAS AUTHORIZING A STEERING
COMMITTEE OF AFFECTED CITIES TO RETAIN LEGAL
COUNSEL AND RATE CASE CONSULTANTS;
AUTHORIZING THE CITIES TO INTERVENE IN RELATED
DOCKETS BEFOE THE TEXAS RAILROAD COMMISSION;
AND SUSPENDING THE PROPOSED TARIFF AND
SCHEDULE OF RATES OF TXU GAS DISTRIBUTION
COMPANY AND PROVIDING AN EFFECTIVE DATE
WHEREAS, TXU Gas Distribution Company, (hereinafter called "TXU Gas"), on
March 1, 2002, filed a Statement of Intent to Change Rates with individual cities for an
increase in rates; and
WHEREAS, the municipality of Grapevine, Texas, (hereinafter called "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, a steering committee of distribution system cities has been formed
to facilitate and coordinate the participation of cities in the service area of TXU Gas in
these rate proceedings; and
WHEREAS, after having considered information from TXU Gas, it is the opinion
of the City Council that the proposed Schedule of Rates should be suspended for a
period of ninety (90) days from the effective date stated in TXU Gas' 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 Texas Railroad Commission,
all as directed by the steering committee of affected cities.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF GRAPEVINE, TEXAS:
Section 1. That the City Council of the City of Grapevine, Texas, authorizes the
City Manager, or his designee to represent the City on the Steering Committee of
I affected cities (hereinafter called "Steering Committee") and authorizes the Steering
Committee of which the City is a participating member, to retain legal counsel and
counsel and engage rate case consultants, and to intervene on behalf of the City in
related dockets and appeals.
Section 2. That in order to allow the City sufficient time to analyze and
prepare for the hearing and decision on any requested rates, the City Council hereby
suspends the operation of the proposed tariffs and Schedule of Rates, which would
otherwise go into effect for a period of ninety (90) days from the effective date stated in
the TXU Gas Statement of Intent, or other documentation, as initially filed or hereafter
revised, i.e., suspension until midnight, July 3, 2002, and for such additional period of
time as may be necessary and authorized by law. During such period of suspension,
the rates in force shall be those rates in effect when the suspended schedule was first
filed and shall continue in force until finally approved, modified or denied by the City
Council.
Section 3. That the City should join with other participating cities to review
such filing and cause to be prepared a report and recommend a rate ordinance for the
consideration of all participating cities and to intervene before 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 4. That the City Secretary shall cause copies of this resolution to be
sent to the TXU Gas representative:
and to:
Autry Warren
Rate Manager, TXU Gas Distribution
1601 Bryan Street
Dallas, Texas 75201-3402
Stan Lowry
City Attorney
P.O. Box 95104
Grapevine, Texas 76099
for forwarding to the Steering Committee.
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF
GRAPEVINE, TEXAS on this the 19th day of March, 2002.
RES. NO. 2
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ATTEST:
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