HomeMy WebLinkAbout03/16 TXU RequestORDINANCE NO. 03/16
AN ORDINANCE OF THE CITY OF UNIVERSITY PARK, TEXAS,
DENYING TXU GAS COMPANY'S REQUEST TO CHANGE RATES IN
THIS MUNICIPALITY, AS A PART OF THE COMPANY'S STATEWIDE
GAS UTILITY SYSTEM; PROVIDING A REQUIREMENT FOR A
PROMPT REIMBURSEMENT OF COSTS INCURRED BY THE CITY;
FINDING THAT THE MEETING AT WHICH THIS ORDINANCE IS
PASSED IS OPEN TO THE PUBLIC AS REQUIRED BY LAW; AND
PROVIDING FOR NOTICE OF THIS ORDINANCE TO TXU GAS
COMPANY
WHEREAS, on or about May 23, 2003, TXU Gas Company (the "Company") filed with
the City of University Park ("City"), a Statement of Intent to change gas rates in all
municipalities within the Company's statewide gas utility system effective June 27, 2003;
WHEREAS, the City has previously extended the effective date of the Company's rate
filing;
WHEREAS, the City has exclusive original jurisdiction to evaluate the Company's
Statement of Intent as it pertains to the distribution facilities located within the City, pursuant to
Texas Utilities Code §§ 102.001(b) and 103.001;
WHEREAS, the Texas Utilities Code § 103.022 provides that costs incurred by the City
in ratemaking activities are to be reimbursed by the regulated utility;
WHEREAS, the City is participating with a coalition of over 120 other Cities in
opposition to the Company's filing at the Railroad Commission, said coalition being known as
Allied Coalition of Cities ("ACC"), in GUD No. 9400 pending at the Commission;
WHEREAS, ACC and the Company have reached a procedural agreement regarding the
schedule for processing GUD No. 9400 that includes TXU's concession to allow one hundred
fifteen (115) additional days to process the rate case and ACC's commitment that member Cities
expedite the process of getting city action appealed to the Commission;
WHEREAS, ACC and TXU jointly endorse the City's denial of the Company's rate
application pending before the City;
WHEREAS, counsel for ACC, upon review of the Company's filing and upon
consultation with various consultants, recommends findings that the Company's proposal is
unjustified and unreasonable; and
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF UNIVERSITY PARK, TEXAS:
SECTION 1. The Company's Statement of Intent to change gas rates within the City, as
part of the Company's statewide gas utility system, is found to be um'easonable because: (a)
TXU's requested return on equity is excessive, generating more than 86% of the requested
increase in rates; (b) the basis for TXU's proposed consolidations (of regional distribution
systems and of pipeline costs with distribution costs) has not been established; (c) the City's
jurisdiction to increase pipeline rates has not been established and, therefore, the proposed
pipeline cost increases should be disallowed; (d) revenue requirements should be reduced rather
than increased; and (e) the TXU filing should be denied pursuant to agreement with the
Company; and is therefore denied in all respects.
SECTION 2. The costs incurred by the City in reviewing the Company's application be
promptly reimbursed by the Company.
SECTION 3. This Ordinance shall become effective immediately from and after its
passage, as the law and charter in such cases provide.
SECTION 4. That it is hereby officially found and determined that the meeting at which
this Ordinance is passed is open to the public as required by law and that .public notice of the
.time, place and purpose of said meeting was given as required. '~,..: :.
SECTION 5. A copy of this ordinance, constituting final action on the Company's
application, be forwarded to the appropriate designated representative of the. Eompany within, 10
days as follows: Autry L. Warren, Director Gas Regulatory, TXU Business Services, 1601
Bryan Street, Dallas, Texas 75201-3402.
DULY PASSED and approved by the City Council of the City of University Park, Texas,
on this the 5th day of August, 2003.
APPROVED:
P~OVED AS TO FORM:
City Attorney
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