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RESOLUTION NO. 23-2229
A RESOLUTION OF THE CITY OF DENTON, TEXAS FINDING THAT COSERV GAS,
LTD.’S STATEMENT OF INTENT TO INCREASE GAS RATES WITHIN THE CITY
SHOULD BE DENIED; FINDING THAT THE CITY’S REASONABLE RATE CASE
EXPENSES SHALL BE REIMBURSED BY THE COMPANY; FINDING THAT THE
MEETING AT WHICH THIS RESOLUTION IS PASSED IS OPEN TO THE PUBLIC AS
REQUIRED BY LAW; REQUIRING NOTICE OF THIS RESOLUTION TO THE COMPANY
AND THE CITY’S LEGAL COUNSEL; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City of Denton, Texas (“City”) is a gas utility customer of CoSew Gas,
Ltd. (“CoServ” or “Company”) and is a regulatory authority under the Gas Utility Regulatory
Act (“GURA”) with exclusive original jurisdiction over CoServ’s rates, operations, and services
within the City; and
WHEREAS, the City cooperated with a coalition of similarly situated cities served by the
Company that have joined together to facilitate the review and response to natural gas issues
affecting the rates charged in CoServ’s service area (“CoServ Gas Cities” or “Steering Committee
of Cities Served by CoSew Gas, Ltd.”); and
WHEREAS, on or about July 28, 2023, CoSew filed with the City a Statement of Intent
to Increase Rates seeking to increase natural gas rates by $10.3 million annually in incorporated
areas; and
WHEREAS, the City passed Resolution No. 32-1573 to suspend the effective date of
CoServ’s requested rate increase for 90 days, the maximum period allowed by law; and
WHEREAS, CoSew Gas Cities hired and directed legal counsel and consultants to
prepare a collective response to the Company’s requested increase, which resulted in a
conclusion that CoServ’s proposed rates are not reasonable; and
WHEREAS, CoServ Gas Cities’ attorneys recommend that members deny the requested
increase; and
WHEREAS, GURA § 103.022 provides that costs incurred by CoSew Gas Cities in
ratemaking activities are to be reimbursed by the regulated utility. NOW, THEREFORE,
THE CITY COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES :
Section 1. The rates proposed by CoSew to be recovered through its gas rates charged to
customers located within the City limits, are hereby found to be unreasonable and shall be
denied.
Section 2. The Company shall continue to charge its existing rates to customers within
the City.
I
Section 3. The City’s reasonable rate case expenses shall be reimbursed in full by
C:oServ.
Section 4. 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 5. A copy of this Resolution shall be sent to CoSew, care of Charles Harrell,
CoServ Gas, Ltd., 7701 South Stemmons Freeway, Corinth, Texas 762 10
(Chanell@cosew.com); and to Thomas Brocato, counsel for CoServ Gas Cities, Lloyd
Gosselink Rochelle & Townsend, P.C., 816 Congress Avenue, Suite 1900, Austin, Texas 78701
(tbrocato@lglawfirm.com) .
The motion to approvg this resolution was made by Brian Bt ok and
seconded by v,'efL', BvrJ ; this resolution was passed and approved by the
following vote []2 - a:
Aye Nay Abstain Absent
Mayor Gerard Hudspeth:,/
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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:
PASSED AND APPROVED this the 5 + '~ day of 'i)c ccf-\h r , 2023.
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ATTEST:
JESUS SALAZAR, CITY SECRETARY
APPROVED AS TO LEGAL FORM:
MACK REINWAND. CITY ATTORNEY
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BY: