Item 9A Memo1l 1 I • : \ � 1l
March 18, 2011
TO: Billy Campbell, City Manager
FROM: Sharen Elam, Director of Finance Ext. 1713
SUBJECT: Resolution No. 03 -037, 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
Action Requested: Approve Resolution No. 03 -037
Background
Information: On May 23, 2003, TXU Gas Distribution Company filed a Statement of
Intent to change gas rates in all municipalities within the TXU Gas
Distribution System.
The Resolution accomplishes the following objectives:
1. It suspends the effective date of proposed new rates for the maximum
period allowed by law. However, it does not specifically identify the end
of the suspension period because it is anticipated that TXU and Cities
will reach an agreement on procedural issues that will cause TXU to
move its effective date to increase the amount of time the Railroad
Commission has to process the case.
2. It commits the city to cooperation with other similarly situated cities to a
joint review of the Company filing, the sharing of consultants and to joint
participation at the Railroad Commission.
3. It authorizes intervention at the Railroad Commission. Pipeline issues
and rates have historically been under the exclusive jurisdiction of the
Railroad Commission and TXU plans to file simultaneously with the
Cities and the Commission because the Company plans to consolidate
the Pipeline and Distribution systems under a single set of rates.
Financial
Considerations: It is not anticipated that there will be any assessment or monetary
encumbrance for participating Cities. Rate case expenses of Cities will be
reimbursed by TXU and adequate funds appear to be available from old
Lone Star Gas ratemaking funds (maintained at the City of Arlington) to
cover initial costs until reimbursement is arranged.
Citizen Input/
Board Review: None required
Legal Review: Resolution reviewed by City Attorney
Alternatives: Approve Resolution No. 03 -037 as presented or modify
Supporting
Documents: Resolution No. 03 -037
TXU Gas Distribution Executive Summary (Hard Copy)
Staff
Recommendation: Approval of Resolution No. 03 -037