HomeMy WebLinkAboutR2002-024RESOLUTION DENYING TXU GAS DISTRIBUTION'S REQUEST TO CHANGE RATES
IN THE NORTH TEXAS METROPLEX DISTRIBUTION SYSTEM AS RECOMMENDED
BY THE COALITION OF CITIES' CONSULTANTS AND COUNSEL; REQUIRING
PROMPT REIMBURSEMENT OF THE CITIES' RATE CASE EXPENSES; AND
PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, on or about March 1, 2002, TXU Gas Distribution, a division of TXU Gas
Company filed with the City of Denton a Statement of Intent to change gas rates in all
municipalities within the North Texas Metroplex Distribution System effective April 5, 2002;
and
WHEREAS, by passage of the Resolution No. 2002-010 on March 26, 2002, the City of '
Denton suspended the effective date of the proposed new rates for 90 days to evaluate the
reasonableness of existing rates and the merits of TXU's proposed changes; and
WHEREAS, the City of Denton participated with other municipalities in a
comprehensive review of TXU Gas Distribution's application; and
WHEREAS, on June 18, 2002, the City Council held a public hearing to receive public
comment and to take evidence on TXU Gas Distribution's application to change gas rates; and
WHEREAS, consultants and counsel retained by the coalition of cities have
recommended denial of the Company's application based upon a report from consultants
demonstrating that the revenue requirement of the North Texas Metroplex Distribution System is
being met under current rates; and
WHEREAS, that recommendation has been endorsed by the Steering Committee of city
representatives who have coordinated the review of TXU Gas Distribution's rate application; and
WHEREAS, after receiving evidence and public comment at the public heating, the City
Council deems it in the public interest to deny TXU Gas Distribution's Statement of Intent to
change gas rates; and
WHEREAS, the Gas Utilities Regulatory Act provides that costs incurred by Cities in
ratemaking activities are to be reimbursed by the regulated utility; NOW, THEREFORE;
THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS HEREBY RESOLVES:
SECTION 1. That TXU Gas Distribution's Statement of Intent to change gas rates
within the North Texas Metroplex Distribution System, including the City of Denton, be in all
respects denied.
SECTION 2. That the costs incurred by the Cities in reviewing TXU's application be
promptly reimbursed by the Company.
SECTION 3. That the City Secretary is hereby directed to send copies of this resolution,
constituting final action on TXU's application to Autry Warren, Rates Manager, TXU Gas
Distribution, 1601 Bryan Street, Dallas, TX 75201-3402 and G. Gail Watkins of Akin, Gump,
Strauss, Hauer & Field, 818 Congress Ave., Suite 1900, Austin, TX 78701.
SECTION 4. This resolution shall become effective immediately upon its passage and
approval.
PASSED AND APPROVED this the /~ ~---.~a3z-of ~q.~_~ ,2002.
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
APPROVED AS TO LEGAL FORM:
HERBERT L. PROUTY, CITY ATTORNEY
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