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ORDINANCE NO. cMVJ -d 0
AN ORDINANCE OF THE CITY OF DENTON, TEXAS AUTHORIZING PARTICIPATION
IN A COALITION OF CITIES KNOWN AS THE ALLIANCE OF TXU MUNICIPALITIES
(ATM) IN ORDER TO HIRE ATTORNEYS AND EXPERTS TO RESPOND TO THE
FILINGS OF TXU GAS COMPANY LOCALLY AND BEFORE THE RAILROAD
COMMISSION OF TEXAS INCLUDING THE AUTHORITY TO NEGOTIATE WITH THE
COMPANY AND TO DIRECT ANY NECESSARY LITIGATION; AUTHORIZING
INTERVENTION AT THE RAILROAD COMMISSION OF TEXAS; SUSPENDING THE
EFFECTIVE DATE OF TXU GAS DISTRIBUTION'S REQUESTED RATE CHANGES AS
SET FORTH IN THEIR STATEMENT OF INTENT FILED WITH THE CITY SECRETARY
TO PERMIT THE CITY TIME TO STUDY THE REQUEST AND ESTABLISH
REASONABLE RATES; TO REQUIRE THE REIMBURSEMENT OF MUNICIPAL RATE
CASE EXPENSES; 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 or about May 23, 2003 TXU Gas Distribution, a division of TXU Gas
Company, hereinafter referred to as TXU Gas, filed with the City of Denton, Texas, ("City") a
Statement of Intent to Change Rates in all municipalities within the TXU Gas Distribution
Systems; and
WHEREAS, on May 23, 2003 TXU Gas filed a Statement of Intent to Increase Rates at
the Railroad Commission of Texas; and
WHEREAS, TXU Gas has requested that the City either deny the rate increase or waive
its original jurisdiction over this matter and have the Railroad Commission exercise original
jurisdiction and the City Council deems that this would not be in the public interest; and
WHEREAS, the rate request by TXU Gas is novel and complex requiring specialized
expertise of lawyers and experts who specialize in ratemaking proceedings initiated by public
utilities; and
WHEREAS, the City needs time to analyze and study the rate requests filed by TXU Gas;
and
WHEREAS, the Gas Utility Regulatory Act grants local regulating authorities the right to
suspend the effective date of proposed rate changes; and
WHEREAS, the Gas Utility Regulatory Act grants local regulatory authorities the right to
intervene in rate proceedings filed at the Railroad Commission; and
WHEREAS, on a systemwide basis the TXU Gas rate requests total almost $70 million;
and
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WHEREAS, the Gas Utility Regulatory Act provides that municipalities shall be
reimbursed for their reasonable rate case expenses by the regulated utility; and
WHEREAS, a coalition of municipalities, known as the Alliance of TXU Municipalities
("ATM") has been active in rate proceedings filed at the Railroad Commission by TXU Gas; and
WHEREAS, the City Council believes it is reasonable for the City to cooperate with
other cities in a review of the Company's rate application and that the City should join with
other cities participating in ATM as a Steering Committee in order to coordinate the hiring and
direction of legal counsel and consultants working on behalf of ATM and the City; NOW,
THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION 1. That the findings set out in the preamble to this resolution are hereby in all
things approved and adopted.
SECTION 2. The effective date of the tariff changes submitted by TXU Gas on or about
May 23, 2003 with the City are hereby suspended for ninety days from the originally scheduled
effective date and for such additional time as the parties may agree upon in order to permit
adequate time for the proper review of the TXU Gas Statement of Intent and to establish
reasonable rates.
SECTION 3. The City is authorized to join with other cities in a coalition of cities
known as the Alliance of TXU Municipalities ("ATM") and authorizes the Steering Committee
of ATM to hire, direct, and guide the lawyers and consultants who are representing said cities,
negotiate with TXU Gas, make recommendations to the City regarding reasonable rates and to
direct any necessary litigation associated with an appeal or rate ordinance and the rate case filed
at the Railroad Commission. .
SECTION 4. The City Council approves the employment of Monte Akers and Jim Boyle
to represent the City with regard to the TXU Gas Statements of Intent filed at the City and at the
Railroad Commission of Texas and authorizes the Steering Committee to employ such rate
experts as are necessary as recommended by the Steering Committee for the Alliance of TXU
Municipalities.
SECTION 5. The City is authorized to intervene at the Railroad Commission of Texas
and to appeal or appear in Court in any matter related to the Statement of Intent filed by TXU
Gas on May 23, 2003.
SECTION 6. The City, in coordination with the Steering Committee cities, shall review
the invoices of its consultants for reasonableness before submitting such invoices for
reimbursement pursuant to Section 103.022 of the Gas Utility Regulatory Act.
SECTION 7. That the City's reasonable rate case expenses shall be reimbursed by TXU
Gas.
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SECTION 8. That the City Secretary is directed to send a true and correct copy of this
Ordinance to a local representative of TXU Gas.
SECTION 9. That the meeting at which this resolution was approved was in all things
conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code
Chapter 551.
SECTION 10. This Ordinance shall be effective immediately upon passage.
PASSED AND APPROVED BY the Governing Body of the City of Denton, Texas, at
a regular meeting of the City Council on this the 17' day of June, 2003.
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
BY
APPROVED AS TO LEGAL FORM:
HERBERT L. PROUTY, CITY ATTORNEY
BY:
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