2002-0420
t City of Southlake, Texas
RESOLUTION NO. 02-042 OFFICIAL RECORD
RESOLUTION DENYING TXU GAS DISTRIBUTION'S REQUEST TO
CHANGE RATES IN THE NORTH TEXAS METROPLEX DISTRIBUTION
SYSTEM; REQUIRING PROMPT REIMBURSEMENT OF CITIES' RATE
CASE EXPENSES
WHEREAS, on or about March 1, 2002, TXU Gas Distribution, a division of TXU Gas
Company filed with the City of Southlake a Statement of Intent to change gas rates in all
municipalities within the North Texas Metroplex Distribution System effective April 5, 2002;
and
WHEREAS, the City of Southlake suspended the effective date of the proposed new rates
for 90 days to evaluate the reasonableness of existing rates and the merits of TXU's proposed
changes; and
WHEREAS, the City of Southlake participated with other municipalities in a
comprehensive review of TXU Gas Distribution's application; and
WHEREAS, consultants and counsel retained by the coalition of cities have
recommended denial of the Company's application based upon a report from consultants
demonstrating that the revenue requirement of the North Texas Metroplex Distribution System is
being met under current rates; and
WHEREAS, that recommendation has been endorsed by the Steering Committee of city
representatives who have coordinated the review of TXU Gas Distribution's rate application; and
WHEREAS, the Gas Utilities Regulatory Act provides that costs incurred by Cities in
ratemaking activities are to be reimbursed by the regulated utility.
NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
SOUTHLAKE that:
I The TXU Gas Distribution's Statement of Intent to change gas rates within the North
Texas Metroplex Distribution System be in all respects denied.
2. The costs incurred by Cities in reviewing TXU's application be promptly reimbursed by
the Company.
3. A copy of this resolution, constituting final action on TXU's application be sent to Autry
Warren, Rates Manager, TXU Gas Distribution, 1601 Bryan Street, Dallas, TX 75201-
3402.
PASSED AND APPROVED THIS THE /1DAY OF C)Ul,1t-. 2002
1
City of Southlake
Resolution No. 02-042
Page 2
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