HomeMy WebLinkAbout23-1573RESOLUTIONNO. 23-1573
A RESOLUTION OF THE CITY OF DENTON SUSPENDING THE SEPTEMBER 1, 2023EFFECTIVE DATE OF COSERV GAS, LTD.’S REQUESTED RATE CHANGE TO PERMITTHE CITY TIME TO STUDY THE REQUEST AND TO ESTABLISH REASONABLERATES; APPROVING COOPERATION WITH OTHER CITIES IN THE COSERV SERVICEAREA, TO HIRE LEGAL AND CONSULTING SERVICES AND TO NEGOTIATE WITHTHE COMPANY AND DIRECT ANY NECESSARY LITIGATION AND APPEALS;REQUIRING REIMBURSEMENT OF THE STEER[NG COMMITTEE OF CITIES SERVEDBY COSERV GAS’ RATE CASE EXPENSES; FINDING THAT THE MEETING AT WHICHTHIS RESOLUTION IS PASSED IS OPEN TO THE PUBLIC AS REQUIRED BY LAW;REQUIRING NOTICE OF THIS RESOLUTION TO THE COMPANY AND LEGALCOUNSEL
WHEREAS, on or about July 28, 2023, CoServ Gas Ltd (“CoServ” or “Company”),pursuant to Gas Utility Regulatory Act § 104.102 filed with the City of Denton (“City”) a
Statement of Intent to change gas rates in all municipalities exercising original jurisdiction
within its service area, effective September 1, 2023; and
WHEREAS, the City is a gas utility customer and a regulatory authority under the GasUtility Regulatory Act (“GURA”) and under Chapter 104, § 104.001 et seq. of GURA has
exclusive original jurisdiction over CoServ’s rates, operations, and services within the City; and
WHEREAS, in order to maximize the efficient use of resources and expertise, it is
reasonable for the City to cooperate with other cities in conducting a review of the Company’sapplication and to hire and direct legal counsel and consultants and to prepare a common
response and to negotiate with the Company and direct any necessary litigation; and
WHEREAS, it is not possible for the City to complete its review of CoServ’s filing by
the September 1, 2023 effective date proposed in CoServ’s Statement of Intent; and
WHEREAS, the City will need an adequate amount of time to review and evaluate
CoServ’s rate application to enable the City to adopt a final decision as a local regulatory
authority with regard to CoServ’s requested rate increase; and
WHEREAS, GURA § 104.107 grants local regulatory authorities the right to suspend the
effective date of proposed rate changes for ninety (90) days; and
WHEREAS, GURA§ 103.022 provides that costs incurred by cities in ratemakingactivities are to be reimbursed by the regulated utility. NOW THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES:
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Section 1. That the findings and recitations set out in the preamble of this Resolution are
found to be true and correct and are hereby adopted by the City Council and made a part hereof
for all purposes.
Section 2. That the September 1, 2023 effective date of the rate request submitted byCoSew on July 28, 2023, be suspended for the maximum period allowed by law to permit
adequate time to review the proposed changes and to establish reasonable rates.
Section 3. That the City is authorized to cooperate with other cities in the CoServ service
area, CoServ Gas Cities, and subject to the right to terminate employment at any time, herebyauthorizes the hiring of Thomas L. Brocato of the law firm of Lloyd Gosselink Rochelle and
Townsend, P.C. and consultants, to review CoServ’s filing, negotiate with the Company, make
recommendations to the City regarding reasonable rates, and to direct any necessary
administrative proceedings or court litigation associated with an appeal of a rate ordinance and
the rate case filed with the City or Railroad Commission.
Section 4. That the City’s reasonable rate case expenses shall be reimbursed by CoServ.
Section 5. That 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.
Section 6. That a copy of this Resolution shall be sent to CoSew, care of Charles D.
Harrell, CoSew Gas Ltd., 7701 South Stemmons, Corinth, Texas 76210-1842, and to Thomas
Brocato, counsel for CoServ Gas Cities, at Lloyd Gosselink Rochelle & Townsend, P.C., P.O.
Box 1725, Austin, Texas 78767-1725 (tbrocato@lglawfirm.com).
Section 7. That this Resolution shall be and become effective from and after its adoption.
„„„d,:hb y"$:S“ gST; JY; “;'1"ti'";~I:i,"::SI::::==p„,=lSd ,pp„,,d by l::following vote n - A :
Aye Nay Abstain Absent
Mayor Gerard Hudspeth:Jr
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Vicki Byrd, District 1 :
Brian Beck, District 2:
Paul Meltzer, District 3 :
Joe Holland, District 4:
Brandon Chase McGee, At Large Place 5 :
Chris Watts, At Large Place 6:
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P Jr!II\1L S S E I=) JrIIIIL ][\r1:) Jr!IIIL P PROVED this the ISh day of RuSH 92023 B
GERARD HUDSPETH, MAYOR
ATTEST:
JESUS SALAZAR, CITY SECRETARY
APPROVED AS TO LEGAL FORM:
MACK REINWAND, CITY ATTORNEY
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