2002-123ORDINANCE NO. d0d -/2J
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 Raikoad
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 terms 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 ~/~ff-/' / ,2002.
/RONI BEASLEY~IAYOR PRO TEM
ATTEST:
JENNIFER WALTERS, C~TY SECRETARY
API~OVED AS TO LEGAL FORM:
HERBERT L. PROUTY. CITY ATTORNEY
'~?Rq2-2002 FR~ 09~43 ~
St~vcl~n Jo
mJl~0N & ~ILLIA~
P, OE
OTXU
Aprilll, 2002
Mc I'Iofo Pro~
City of Death., T~xas
215 I%~ McKinney Street
Dent~n~ Texas 76201
Re: Gl_fy of Den_to~ Ordi~o~ No. 2002-073
2002-073 (tho
1. Distributio~ will publish uotiee in the De. ton
se~or0ing m the terms of the Oulluam:e for two comcct,-livc weeks b _o~,n~-S
w~.k of April 21, 2002. D~lion will only publish noti~ purmant to th~ te~ns
of th~ Ordinauoo for two wvok~ not ~ w~.t~, ss ,~.dated by Section 1,
Paragraph B of the ~ee. A copy of the notioo is ~a0hed as Exhibit A,
2. The City ~ not ci~ improptr ~oticz as a r~so~ to alter th~
jugsdieiional deadline or statuto~ timef~eame f~' the North T~xas Mbtropl~
Dishibution System ral~ case that wa~ filed by Distrib~lion on Match 1, 2002.
3. l'he Ci~ end Distributloo will egret that Distribution must publish
new noticz for ~ consecutive weeks if llNshibu~ien u~i~terally makes a~y
material ameudmeu£ ~o i~s rate case fll~d on 'Maroh l, 2002. A "mateti~l
zmem![menf' to the r~e case is limited to any increase in total revenue requealod
above 10% of thc orilzirml total r~v~ reque~L
4. Thc City and Dishibutitm will ~ that this lette~ agregmcut ]ms no
bearing on the validity of thi~ O~_,mec which is Mcseudy bciug litigated before
tho State Ofl~cc ~ Administrative Hez~in~s C'SOAIf'), Lead Co~soli~te~ Docket
:NO. 455-02-2065~ or a~y at, peal pr~ntly bofo~e tho Railroad C~mi~SiO~ Of
'~PR-12-2002 FBI 09:44 ~
P, U~
F~ NO,
WILLIAMS ~0o~
l)~toa Notlc~ Ordinance
Alnil t 1, 2002
V c~ ~'uly yours,
TXU' ~/MSTR~UTION
ACCEI~TED A~D AORI~P.D TO
aa~/je_.~-aav o~at, 2002.
'RPR-12-2002 FRI 09:44 RM
o4/11/02 1~1~ ~,~T 214~0001!
NO,
P, 04
~Ioo4
EXHIBIT
Av
' ' hPR-12-2002 FRI 09:44
o4/z~,,o2 z,:za Fax
NOTICE OF GAS RATE INCREASE REQUEST
TXU Gas Distribution (the "Company"), in aa=ordance with the Gas Utility Regulatory Act,
hereby gives notice of its intent to Implement a new schedule of rotes for natural gas service to be
~arged to all residential, commercial and Industrial ~stnmers in the North Texas Metroplax
Distribution System, 'l'he North Texas Metroplex Distribution System cemprises 107 cities Including
the City of Denton.
The proposed revlsIans to the respective rate schedules will Impact Residential Service,
Commercial Sewlce, Industrial Sales, Industrial Transportation, Industrial Sales and
Transportation, Rate Adjustment Prov',~lons - Gas Cost Adjustment. Tax & Franchise Fee
Adjustment, Surcfla~es, and Uncolle~ble Recovery Adjustment. and Miscellaneous Servi=e
Charges - Connection Cheq;le, Read for Change Charge, Returned Check Charges, Delinquent
Notification Charge, Main Line Extension Rate, Excess Flow Valve Charge, Cad,sin Stand-by Gas
Generators, and Charge for Temporary Discontinuance of Service. The proposed new schedu[e of
rates will also eliminate, In the ctties In which they are In elfect, the Weather Normalization
^djustment Clause, the Cc~t of Service Adjustment Clause and the Plant Investment Cost
Adjustment Clause, the Rate S~.hedule for Publi~ Schools-N, Commercial Contract Public Schools
Rate and Military Rates-N, In addition, certain Industrial Rate Schedules (including Industrial
Rates-N) will be dosed to new customem,
The proposed rates am expected to produce a $33.8 mllilon or an 8.0t percent increase in
the Company's total annual revenues and 23.5 percent increase in base rate revenues from
residential, commercial and Industrial ouetomem 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 pement and 9,0 percent respectively, The Increase
In base rate revenues for residential and commercial customers In the City el Denton is 33.4
pement and 24.8 percent respectively. A residential customer in the Cji7 of Denton receiving a bill
far 6 rncf would see an Increase of $4.33. A cemmeralal customer in the City of Denton receiving a
bill far 30 mcr would see an inGrease of approximately $5,84,
A ..C'tatement of Intent to change rates was filed with each city in the North Texas Metroplex
Distribution System an March ~, 2002, The proposed effective date for the rate changes is April 5,
2002. If you desire to comment concerning this change of rates or need additional Information
concerning this gas rate Increase request, contact the Denton City Affomey's Office at (940) 34g-
8333.