HomeMy WebLinkAboutR2002-029RESOLUTION NO. 4~t57~,~-~.~ ~
RESOLUTION OF THE CITY OF DENTON, TEXAS, AUTHORIZING INTERVENTION AT
THE RAILROAD COMMISSION OF TEXAS IN THE TXU LONE STAR PIPELINE
REQUEST TO ESTABLISH RATES, GUD DOCKET NO. 9304; AUTHORIZING THE
HIRING OF ATTORNEYS AND CONSULTANTS; REQUIRING REIMBURSEMENT OF
RATE CASE EXPENSES INCURRED BY THE CITY; FINDING THAT THE MEETING
COMPLIED WITH THE OPEN MEETINGS ACT; MAKING OTHER FINDINGS AND
PROVISIONS RELATED TO THE SUBJECT; AND DECLARING AN EFFECTIVE DATE
WHEREAS, on May 8, 2002, TXU Lone Star Pipeline (TXU LSP) filed a request at the
Railroad Commission of Texas, GUD Docket No. 9304, to increase directly the rates of TXU
LSP customers and indirectly the rates of residential and commercial customers of TXU Gas
residing within the City of Denton (City), Texas, and within other cities served by TXU Gas; and
WHEREAS, TXU LSP is seeking to impose a surcharge related to expenditures for
pipeline integrity and safety at an estimated cost of at least $15 million per year; and
WHEREAS, the City is a regulatory authority under the Gas Utility Regulatory Act
GURA); and
WHEREAS, the City has a fiduciary responsibility to its citizen-gas customers to insure
that the rates charged by public utilities do not exceed what is reasonable or necessary; and
WHEREAS, the evaluation of TXU LSP's Application to Increase Rates requires the
specialized expertise of lawyers and consultants who regularly practice before the Railroad
Commission of Texas; and
WHEREAS, pursuant to GURA, Section 103.022 a municipality is entitled to
reimbursement of its reasonable rate case expenses; NOW, THEREFORE,
THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS HEREBY RESOLVES:
SECTION 1. That the findings set out in the preamble to this resolution are hereby in all
things approved and adopted. ~-~ ·
SECTION 2. The City is authorized to intervene at the Railroad Commission with regard
to any matters at issue in GUD Docket No. 9304.
SECTION 3. The City is authorized to join with other cities to form a steering committee
of cities served by TXU Gas at the city gate in order to coordinate the efforts to ensure that
ratepayers are not charged more than what is reasonable and necessary. The coalition of cities is
known informally as the Association of TXU Municipalities (ATM).
SECTION 4. Subject to the right to terminate employment at any time, the City of
Denton hereby authorizes the Law Offices of Jim Boyle, PLLC to act as legal counsel and to
work with the experts approved by the steering committee.
SECTION 5. The City, in coordination with the steering committee, shall review the
invoices of its consultants for reasonableness before submitting such invoices for reimbursement
pursuant to Section 103.022 of GURA.
SECTION 6. That the City Council has found and determined that the meeting at which
this resolution is considered is open to the public and that notice thereof was given in accordance
with provisions of the Texas Open Meetings Law, Tex. Gov't Code ch. 551, as amended, and
that a quorum of the City Council was present.
SECTION 7. That this resolution shall become effective immediately upon its passage
and approval.
PASSED AND APPROVED this the~(~/2002.
RO TEM
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
APPROVED AS TO LEGAL FORM:
HERBERT L. PROUTY, CITY ATTORNEY
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