Item 9A ResolutionRESOLUTION NO. 03 -037
RESOLUTION OF THE CITY OF SOUTHLAKE, TEXAS
SUSPENDING THE EFFECTIVE DATE OF TXU GAS
DISTRIBUTION'S REQUESTED RATE CHANGES TO
PERMIT THE CITY TIME TO STUDY THE REQUEST AND
TO ESTABLISH REASONABLE RATES; APPROVING
COOPERATION WITH OTHER CITIES WITHIN THE TXU
GAS DISTRIBUTION SYSTEM TO CREATE A STEERING
COMMITTEE TO HIRE LEGAL AND CONSULTING
SERVICES AND TO NEGOTIATE WITH THE COMPANY
AND DIRECT ANY NECESSARY LITIGATION; REQUIRING
REIMBURSEMENT OF CITIES' RATE CASE EXPENSES;
AUTHORIZING INTERVENTION IN THE PROCEEDING AT
THE RAILROAD COMMISSION; REQUIRING NOTICE OF
THIS RESOLUTION TO THE COMPANY
WHEREAS, on or about May 23, 2003, TXU Gas Distribution, a division of TXU Gas
Company, filed with the City of Southlake, Texas a Statement of Intent to change gas rates in all
municipalities within the TXU Gas Distribution System; and
WHEREAS, it is reasonable for the City of Southlake, Texas to cooperate with other
cities in a review of the Company's application and create a Steering Committee to coordinate
the hiring and direction of legal counsel and consultants and to negotiate with the Company and
direct any necessary litigation; and
WHEREAS, the Gas Utility Regulatory Act grants local regulatory authorities the right to
suspend the effective date of proposed rate changes; and
WHEREAS, the Gas Utility Regulatory Act provides that costs incurred by Cities in
ratemaking activities are to be reimbursed by the regulated utility; and
WHEREAS, the Gas Utility Regulatory Act grants local regulatory authorities the right to
intervene in rate proceedings filed at the Railroad Commission.
THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
SOUTHLAKE, TEXAS:
1. That the effective date of the tariff changes submitted by TXU Gas Distribution
on or about May 23, 2003, be suspended to permit adequate time to review the proposed changes
and to establish reasonable rates.
2. That the City is authorized to cooperate with other Cities within the TXU Gas
Distribution System to create a Steering Committee to hire and direct legal counsel and
consultants, negotiate with the Company, make recommendations to the City regarding
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reasonable rates and to direct any necessary litigation associated with an appeal of a rate
ordinance and the rate case filed at the Railroad Commission.
3. That the City's reasonable rate case expenses shall be reimbursed by TXU Gas
Distribution.
4. That the City is authorized to intervene in TXU Gas Distribution's rate case filed
at the Railroad Commission filed on or about May 23, 2003.
5. That a copy of this suspension resolution be sent to the local representative of
TXU Gas Distribution.
Passed and approved the 3 rd day of June, 2003.
Mayor
City of Southlake
ATTEST:
City Secretary
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