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Home My WebLink About2002-123F' SAG. Docummb\Orlin®cm\02Moricc egramrncdoc ORDINANCE NO. 404 - //,0 AN ORDINANCE AUTHORIZING THE CITY MANAGER TO EXECUTE A LETTER AGREEMENT WITH TXU GAS DISTRIBUTION AGREEING ON THE FORM OF NOTICE TO BE PUBLISHED IN THE DENTON RECORD -CHRONICLE NOTIFYING DENTON RATEPAYERS OF THE EFFECT OF THE REQUEST FOR AN ADJUSTMENT OF RATES BY TXU GAS DISTRIBUTION IN THE NORTH TEXAS METROPLEX DISTRIBUTION SYSTEM RATE CASE; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, TXU Gas Distribution has filed a statement of intent to increase rates in 107 cities, including the City of Denton, known as the North Texas Metroplex Distribution System; and WHEREAS, on March 5, 2002, the City Council passed Ordinance No. 2002-073 setting forth the requirements for publication of a notice by each gas utility operating within the City such as TXU Gas Distribution to notify Denton residents of requested increased in gas rates; and WHEREAS, TXU appealed this Notice Ordinance through the Texas Railroad Commission; and WHEREAS, the parties wish to resolve any issues concerning the Notice Ordinance by entering into a Letter Agreement regarding the publication of that notice; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The City Manager is hereby authorized to execute a Letter Agreement, substantially in the form attached, with TXU Gas Distribution setting forth the requirements for publication of notice in the Denton Record -Chronicle under the terns of Ordinance No. 2002- 073 to notify Denton ratepayers of the effect of TXU's request for a rate increase in the North Texas Metroplex Distribution System. SECTION 2. EFFECTIVE DATE. This ordinance shall immediately take effect and be in full force and effect from and after the date of its adoption. PASSED AND APPROVED this the / ` day of l 2002. RONI BEASLEY YOR PRO TEM ATTEST: JENNIFER WA�LTERS, G/YITY SECRETARY BY:I' nni i 10� / //? - A.F�r 114 ENRON is APR-12-2002 FRI 09r43 AM FAX NO, P. 02 04/11/02 w is FAY 214as00011 rXU Gan ChtAhu an Saaphen J. Nonla 1601&yYn Sr. Ste 32-M VICe RGICIenr 4a11as.YX 7=I-3a11 rah 214 812 4621 F=214 812 3221 sbdulalaw.rnm April It, 2002 Mr. Nab Prouty City Attorney City of Dorton, Texas 215 East bdAinney Street Denton, Texas 76201 Dear Mr. Prouty. MMfON a WILLIAMS . a, .. , wl,1 tix la 002 *TXU TX(J Gas Distribution ("Distribution') and the City of Denton (the "City" or `'Denton') desire to eater into this letter agreemmt regarding compliance with dae Denton Ordinanoc No, 2002-073 (the "Ordinance'). 1. Distnhation will publish notice in the Denton XecoraLChronkle according to the terms of the Ordinance for two couseautivc weeks bcgm11uQg the week of April 21, 2002. Distribution will only publish notice pursuant to the terms of the Ordinance for two weeks, not fomr weeks, as mandated by Section 1, Paragraph 13 of the Ordinance. A copy of the notice is attached as Exln'bit A. 2. The City will not cite improw notice as a reason to alter the jurisdicaunal deadline or statutory timeframe for the North Texas Metroplex Distribution System rate case that was filed by Distribution on March 1, 2002. 3. The City acid Distribution will agree that Distribution must publish new notice for four consecutive weeks if Dktribution unilaterally metres any material amendment to its rate case filed on Match 1, 2002. A `material amendment" to the rate case is limited to any increase in total revenue requested above 10% of the original total revenue requested. 4. The City and Distribution Will agree that this letter agreement has no bearing on the validity of this Ordinance which is presently being litigated before the State Office of Administrative Bearings (" SOAlr% 1=4 Consolidated Docket No. 455-02-2065, or any appeal presently before the Railroad Cotamission of APR-12-2002 FRI W 44 AM 04/11/02 �10!18 FAX 2148800011 FAX NO, P. i13 IItMK & WILLIAX5 14003 Denton Notice Ordinance April 11, 2002 Page 2 Texas or SOAK regarding wiliaanoes passed by the cities of Dorton, Barham, Leander, Gn-envillc, Burnet, CWACana, Manor, Galesville, orLonVIiew. if the foregoing is iu11y acceptable to you, please indicate your agreement by Aping is the appropriate apace brdow acid rcumftg an original to the undersigned. A facsimile of this letter agreement evidencing the signature of both parties is satisfactory cvi(Ionoe of its execution for all putposm. Very tryYom) TXU GAS DISTRIBUTION ACC TEE AND AGREED TO tfuis ZLtl d y of April, 2002. CM OF DENTON, TEXAS VAj APR-12-2002 FRI 09:44 AM 04/11/02 10219 W 2148800011 FAX N0, P. 04 MINM A WILLIAMS IZ004 EXHIBIT I1 - APR-12-2002 FRI 09:44 AM FAX N0, P. Ub 04/11/02 10:12 FAX 2148800011 MINTON & WILLIAMS Q003 NOTICE OF GAS RATE INCREASE REQUEST TXU Gas Distribution (the "Company), in accordance with the Gas Utility Regulatory Act, hereby gives notice of its Intent to Implement a new schedule of rates for natural gas service to be charged to all residential, commercial and Industrial customers in the North Texas Metroplax Distribution System. The North Texas Metroplex Distribution System comprises 107 cities Including the City of Denton. The proposed revisions to the respective rate schedules will impact Residential Service, Commercial Service, Industrial Sales, Industrial Transportation, Industrial Sales and Transportation, Rate Adjustment Provisions — Gas Cost Adjustment, Tax & Franchise Fee Adjustment, Surcharges, and Uncollectible Recovery Adjustment, and Miscellaneous Service Charges — Connection Charge, Read for Change Charge, Returned Check Charges, Delinquent Notification Charge, Main Line Extension Rate, Excess Flow Valve Charge, Certain Stand-by Gas Generators, and Charge for Temporary Discontinuance of Service. The proposed new schedule of rates will also eliminate, In the elties in which they are In effect, the Weather Normalization Adjustment Clause, the Cost of Service Adjustment Clause and the Plant Investment Cost Adjustment Clause, the Rate Schedule for Public Schools-N, Commercial Contract Public Schools Rate and Military Rates-N. In addition, certain Industrial Rate Schedules (including Industrial Rates-N) will be closed to new customers. The proposed rates are expected to produce a $33.8 million or an 8.01 percent increase in the Company's total annual revenues and 23.5 percent increase in base rate revenues from residential, commercial and Industrial customers In the North Texas Metroplex Distribution System. The Company is proposing to increase total annual revenues from residential and commercial customers located in the City of Denton by 12.5 percent and 9,0 percent respectively. The Increase In base rate revenues for residential and commercial customers In the City of Denton is 33.4 percent and 24.8 percent respectively. A residential customer in the City of Denton receiving a bill for 6 mcf would see an Increase of $4.33. A commercial customer in the City of Denton receiving a bill for 30 mcf would see an increase of approximately $5,84, A Statement of Intent to change rates was filed with each city in the North Texas Metroplex Distribution System on March 1, 2002. The proposed effective date for the rate changes is April 5, 2002. It you desire to comment concerning this change of rates or need additional Information concerning this gas rate increase request, contact the Denton City Attorneys Office at (940) 349- 8333.