HomeMy WebLinkAboutR2009-001sAour documentsVesolutions\09koserv gas rate resolution.doc
RESOLUTION NO.
A RESOLUTION OF THE CITY OF DENTON SUSPENDING THE EFFECTIVE DATE OF
COSERV GAS LTD'S REQUESTED RATE CHANGES TO PERMIT THE CITY TIME TO
STUDY THE REQUEST AND TO ESTABLISH REASONABLE RATES; APPROVING
COOPERATION WITH OTHER CITIES WITHIN THE COSERV SYSTEM TO HIRE
LEGAL AND CONSULTING SERVICES AND TO NEGOTIATE WITH THE COMPANY
AND DIRECT ANY NECESSARY LITIGATION; REQUIRING REIMBURSEMENT OF
CITIES' RATE CASE EXPENSES; AUTHORIZING INTERVENTION IN THE
PROCEEDING AT THE RAILROAD COMMISSION; REQUIRING NOTICE OF THIS
RESOLUTION TO THE COMPANY; AND ESTABLISHING AN EFFECTIVE DATE.
WHEREAS, on or about December 18, 2008, CoServ Gas Ltd. ("CoServ"), filed with the
City of Denton a Statement of Intent to change gas rates in all municipalities within the CoServ
System; and
WHEREAS, it is reasonable for the City of Denton to cooperate with other cities in a
review of the Company's Statement of Intent and to coordinate the hiring and direction of legal
counsel and consultants and to negotiate with the Company and direct any necessary litigation;
and
WHEREAS, Gas Utility Regulatory Act § 104.107 grants local regulatory authorities the
right to suspend the effective date of proposed rate changes for ninety (90) days; and
WHEREAS, Gas Utility Regulatory Act § 103.022 provides that costs incurred by cities
in ratemaking activities are to be reimbursed by the regulated utility; NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES:
SECTION 1. The January 23, 2009 effective date of the rate request submitted by
CoServ be suspended for the maximum period allowed by law to permit adequate time to review
the proposed changes and to establish reasonable rates.
SECTION 2. The City is authorized to cooperate with other cities in the CoServ service
area to hire and direct legal counsel and consultants, negotiate with the Company, and to
intervene and participate in any necessary administrative proceedings or court litigation
associated with an appeal of city action.
SECTION 3. The City authorizes the law firm of Lloyd Gosselink Rochelle & Townsend
to act on behalf of the City to negotiate with CoServ and direct any necessary litigation.
SECTION 4. The City's reasonable rate case expenses shall be reimbursed by CoServ.
SECTION 5. It is hereby officially found and determined that the meeting at which this
Resolution is passed is open to the public as required by law and the public notice of the time,
place, and purpose of said meeting was given as required.
sAour documentsVesolutions\09koserv gas rate resolution.doc
SECTION 6. The City Secretary shall notify CoServ by sending a copy of this
Resolution to Charles D. Harrell, Chief Financial Officer, CoServ Gas Ltd., 7701 South
Stemmons, Corinth, Texas 76210-1842 and shall send a copy to Kristen Doyle, counsel for
Cities Served by CoServ at Lloyd Gosselink Rochelle & Townsend, P.C., 816 Congress Avenue,Ste. 1900, Austin, Texas 78701.
PASSED AND APPROVED this the day of 2009.
l
MAkK B U MAYOR
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
A. 9-
BY:j 0 17-0 1 4
DAPOVE TO LEGAL FORM:
ANITA BURGESS, CITY ATTORNEY
BY:
Page 2