The URL can be used to link to this page

Home My WebLink AboutR2002-010RESOLUTION NO. ~/~,~ "~(~//~ A RESOLUTION AUTHORIZING A STEERING COMMITTEE OF AFFECTED CITIES TO RETAIN LEGAL COUNSEL AND RATE CASE CONSULTANTS IN THE MATTER OF THE STATEMENT OF INTENT BY TXU GAS DISTRIBUTION COMPANY TO CHANGE RATES; AUTHORIZING THE HIRING OF ADDITIONAL CONSULTANTS; AUTHORIZING THE CITIES TO INTERVENE IN RELATED DOCKETS BEFORE THE TEXAS RAILROAD COMMISSION; PERMITTING SPENCER STATION GENERATING COMPANY, L.P. TO INTERVENE IN THIS PROCEEDING; AND SUSPENDING THE PROPOSED TARIFF AND SCHEDULE OF RATES OF TXU GAS DISTRIBUTION COMPANY; ADOPTING FINDINGS IN THE PREAMBLE; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, TXU Gas Distribution Company, (hereinafter called "TXU Gas"), on March 1, 2002, filed a Statement of Intent to Change Rates with individual cities for an increase in rates; and WHEREAS, TXU Gas has proposed that the change in gas rates would become effective April 5, 2002, and would increase TXU Gas's annual revenue by $33.9 million, or 8.02% in 107 cities in the North Texas Metroplex Distribution System which includes an annual increase of 1,207,538 or an increase of 10.35% to rate payers within the City of Denton; and WHEREAS, the municipality of Denton, Texas, (hereinafter called "City") is a regulatory authority having a statutory duty to participate in such proceedings and whose citizens will be substantially affected by the rates established as a result of such proceedings; and WHEREAS, the City is entitled to be reimbursed for its reasonable expenses, pursuant to the Texas Gas Utilities Regulatory Act; and WHEREAS, a steering committee of the Northwest Metroplex Distribution System cities has been formed to facilitate and coordinate the participation of cities in the service area of TXU Gas in these rate proceedings; and WHEREAS, after having considered information fi.om TXU Gas, it is the opinion of the City Council of the City of Denton, Texas, that the proposed Schedule of Rates should be suspended for a period of ninety (90) days fzom the effective date stated in TXU Gas' Statement of Intent or other documentation, as initially filed or hereafter revised, for further study, investigation, presentation of evidence and public hearing; and WHEREAS, on March 15, 2002, the City Manager received Spencer Station Generating Company, L.P.'s ("Spencer") Plea In Intervention seeking to intervene in this proceeding and requesting the City to permit it to participate in this proceeding to investigate and consider TXU Gas' Statement of Intent to change rates; and WHEREAS, it is in the public interest to join with other cities to review such filing and present evidence as may be appropriate before the Texas Railroad Commission, all as directed by the steering committee of affected cities and to allow Spencer to intervene as an affected person; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. That the City Council of the City of Denton, Texas, authorizes the City Attorney to represent the City on the Steering Committee of affected cities (hereinafter called Steering Committee") and authorizes the Steering Committee of which the City is a participating member, to retain legal counsel and engage rate case consultants, and to intervene on behalf of the City in related dockets and appeals. SECTION 2. That the City Council authorizes the City Manager to hire the Law Offices of Jim Boyle to review the Steering Committee's consultants findings with respect to the City of Denton service area and to assist the Steering Committee consultants in this proceeding. SECTION 3. In order to allow the City of Denton, Texas, sufficient time to analyze and prepare for a hearing and a decision on any requested rates, the City Council of the City of Denton, Texas, hereby suspends the operation of the proposed tariffs and Schedule of Rates, which would otherwise go into effect for a period of ninety (90) days from the effective date stated in TXU Gas' Statement of Intent, or other documentation, as initially filed or hereafter revised, i.e., suspension until midnight, July 3, 2002, and for such additional period of time as may be necessary and authorized by law. During such period of suspension, the rates in force shall be those rates in effect when the suspended schedule was first filed and shall continue in force until finally approved, modified, or denied by the City Council. SECTION 4. The City of Denton, Texas, should join with other participating cities to review such filing and to intervene before the Texas Railroad Commission, subject to the right to terminate such participation at anytime by written notice and to act independently in the exercise of local regulatory authority. SECTION 5. The City Council has reviewed the Spencer Station Generating Company, L.P.'s Plea In Intervention, a copy of which is attached to and made a part of this Resolution, finds that Spencer Station Generating Company, L.P. is an affected person as defined in Texas Utilities Code Section 101.003(1)(B) and Spencer's Plea In Intervention is accepted and Spencer is hereby authorized to participate as a party in this proceeding--the City's consideration of TXU Gas' Statement of Intent to Change Rates--and is added to the service list in this proceeding. SECTION 6. The City Secretary shall cause copies of this resolution to be sent to the TXU Gas representative and Spencer Station Generating Company, L.P.'s representative: Page 2 of 3 James Johnson, Town Manager Oncor Distribution Division 106 S. Bradshaw Denton, TX 76205 James A. Tramuto V.P. Extemal Relations, West Region PG&E Natural Energy Group 1100 Louisiana, Suite 1650 Houston, Texas 77002 and to: Jay B. Doegey City Attorney City of Arlington Post Office Box 231 Arlington, Texas 76004-0231 for forwarding to the Steering Committee. SECTION 7. That all of the declarations and the findings contained in the preamble to this resolution are made a part hereof and shall be fully effective as a part of the resolved subject matter of this resolution. SECTION 8. That this resolution shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the c~/~'f-~ dayof ~VJf/~ ,2002. RONI BEASLEY~,_~A.~OI~RO TEM ATTEST: JENNIFER WALTERS, CITY SECRETARY APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY Page 3 of 3 STATEMENT OF INTENT TO CHANGE § RESIDENTIAL, COMMERCIAL AND § INDUSTRIAL RATES, TO CLOSE CERTAIN § INDUSTRIAL RATE SCHEDULES § INCLUDING INDUSTRIAL RATES-N) TO § NEW CUSTOMERS, TO ELIMINATE § MILITARY RATES-N, TO ELIMINATE RATE § SCHEDULES FOR PUBLIC FREE § SCHOOLS-N AND COMMERCIAL § CONTRACT FOR PUBLIC SCHOOL GAS § SERVICE, TO ELIMINATE THE WEATHER § NORMALIZATION ADJUSTMENT CLAUSE § TO ELIMINATE THE COST OF SERVICE § ADJUSTMENT CLAUSE, TO ELIMINATE § THE PLANT INVESTMENT COST § ADJUSTMENT CLAUSE, TO PROVIDE § FOR A SURCHARGE FOR § UNCOLLECTIBLE EXPENSES; AND TO § PROVIDE FOR A MISCELLANEOUS § SERVICE CHARGE FOR THE TEMPORARY § DISCONTINUANCE OF SERVICE § uiTY MANAGER'S OFFICE BEFORE THE CITY OF DENTON, TEXAS SPENCER STATION GENERATING COMPANY, LP.'S PLEA IN INTERVENTION Spencer Station Generating Company, L.P. Spencer) files this Plea in Intervention in the above~captioned proceeding, and ~n support thereof respectfully shows the City of Denton (City) the following: 1. Spencer owns and operates the Spencer Generating Station (Spencer Station), a gas-fired electric generation facility Iocated within the City; 2. TXU Gas Distribution (TXU GD) has flied a Statement of Intent which, among other things, requests the City to approve new transportation rates for gas distribution service to contract industrial customers, including electric generation customers, in the City; 044143.0038 AUSTIN 268744 v2 1 3. The transportation rates that TXU GD proposes to charge for gas distribution service to contract industrial customers in the City are subject to the City's jurisdiction pursuant to Texas Utilities Code (TUC) Section 103.001; 4. In other proceedings before the City, the Railroad Commission of Texas Commission), and the Denton County District Court (Court), TXU GD has asserted that TXU GD currently provides gas distribution service to the Spencer Station, an assertion that Spencer disputes; 5. The City's consideration of TXU GD's Statement of Intent in this proceeding affects Spencer's gas utitity service and rates; 6. Spencer is an affected person, as defined in Texas Utilities Code Section 101.003(1)(B); 7. Spencer has a justiciable interest in the matters raised by TXU GD's Statement of Intent; and 8. No other party can adequately represent Spencer's interest in this proceeding. For the foregoing reasons, Spencer respectfully requests the City to permit Spencer to participate as a party in this proceeding, to add Spencer to the service list in this proceeding, and to grant Spencer such other and further relief to which it may show itself to be entitled. 044143.0036 AUSTIN 268744 v2 2 Respectfully submitted, AKIN, GUMP, STRAUSS, HAUER & FELD, L.L.P. G. Gail Watkins State Bar No. 20923400 Robert F. Biard State Bar No. 02287500 AKIN, GUMP, STRAUSS HAUER & FELD, L.L.P. 1900 Frost Bank Plaza 816 Congress Avenue Austin, Texas 78701 512) 499-6212 512)703-1111 Fax ATTORNEYS FOR SPENCER GENERATING COMPANY, L.P. STATION 044143.0038 AUSTIN 268744 v2 3 CERTIFICATE OF SERVICE I hereby certify that a true and correct copy of the foregoing docu_m~)qt has been served by first class U.S. Mail to the parties listed below on this ~_~of March, 2002. Robert F. Biard Mr. Autry Warren TXU Business Services 1601 Bryan Street Dalfas, Texas 75201-3411 Mr. Stephen Houle TXU Gas Distribution 1601 Bryan Street Ste. 32-002 Dallas, Texas 75201-3411 Mr. Herb Prouty Legal Department City of Denton Municipal Building 215 E. McKinney Denton, Texas 76201 Mr. Michael A. Conduff City Manager City of Denton Municipal Building 215 E. McKinney Denton, Texas 76201 0441430038 AUSTIN 268744 v2