2003-313ORDINANCE NO. ,~Offd
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS
PROVIDING FOR THE DISMISSAL OF TXU GAS COMPANY'S REQUESTED INCREASE
IN RATES IN THE EVENT THE COMPANY FAILS TO AMEND ITS STATEMENT OF
INTENT TO REMOVE INCREASES FOR PIPELINE SERVICES FROM ITS REQUESTED
DISTRIBUTION RATES; AND PROVIDING FOR AN EFFECTIVE DATE
WHEREAS, on or about May 23, 2003, TXU Gas Company ("TXU") filed with the City
of Denton, ("City") a Statement of Intent to Increase Rates; and
WHEREAS, prior to June 27, 2003, the City adopted a resolution suspending the
effective date of the tariffs filed with the City for ninety days from the originally scheduled
effective date in order to permit the City to properly review the TXU Statement of Intent; to join
a coalition of other Texas cities known as the Alliance of TXU Municipalities ("ATM"); to
employ lawyers to represent the City with regard to the Statements of Intent filed at the City and
at the Railroad Commission of Texas; to authorize the steering committee of ATM to provide
direction and guidance to the lawyers who are representing said cities; and to employ such rate
experts as are necessary as recommended by the steering committee for ATM; and
WHEREAS, as a result of such review, the City has determined that the increase in
distribution rates requested by TXU includes increases in charges or rates for pipeline
transmission, transportation and delivery of gas outside the territorial limits of the City; and
WHEREAS, the City has no authority to set rates in which increases for pipeline services
outside the City are included within the requested increases for distribution rates. NOW,
THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION 1. The findings set out in the preambles to this Ordinance are hereby in all
things approved and adopted.
SECTION 2. The City has no authority to set rates in response to the Statement of Intent
in light of the fact that the City has no jurisdiction over the bundled distribution/pipeline rates
requested by TXU.
SECTION 3. TXU will be given seven (7) days from the effective date of this ordinance
- September 16, 2003 - or until September 23, 2003 to amend its Statement of Intent to remove
all requested increases for TXU Lone Star Pipeline or for pipeline services located outside the
City from its requested increases in distribution rates.
SECTION 4. In the event TXU fails to amend its Statement of Intent to conform to
Section 3, then TXU's requested increase in rates is in all respects is dismissed. In the event a
court should hold that the City had jurisdiction over the bundled distribution/pipeline rates
requested by TXU, this ordinance shall be considered a denial of TXU's Statement of Intent to
Increase Rates.
SECTION 5. If any term, condition, or section of this Ordinance or the application
thereof to any person or circumstance shall, to any extent, be held to be invalid, unenforceable,
or unconstitutional, the remainder hereof and the application of such term, condition, or section
to persons or circumstances other than those as to whom it shall he held to be invalid,
unenforceable, or unconstitutional shall not be affected thereby, and this Ordinance and all the
terms, conditions, and sections hereof, shall, in all respects, continue to be effective and to be
complied with. It is the intent of the City in adopting this Ordinance that no portion or provision
thereof shall become inoperative or fail by reason of any invalidity, unenforceability, or
unconstitutionality of any other portion or provision, and to this end all provisions of this
Ordinance are declared to be severable.
SECTION 6. This Ordinance is cumulative of all other requirements under state law.
SECTION 7. Notice of this ordinance shall be faxed and mailed to Mr. Autry Warren,
TXU Business Services, Director Gas Regulatory, 1601 Bryan Street, Dallas, Texas 75201-3411
on the date of the adoption of this ordinance.
SECTION 8. This ordinance shall be effective as of the date of its adoption.
PASSED AND APPROVED this the~ _~)day of ~,, ~-2~ldgflr_J , 2003.
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
APPROVED AS TO LEGAL FORM:
HERBERT L. PROUTY, CITY ATTORNEY
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