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Item 5CCity of Southlake, Texas MEMORANDUM TO: Billy Campbell, City Manager FROM: Sharen Elam, Director of Finance Ext. 1713 SUBJECT: Resolution No. 02 -023, Authorizing a steering committee of affected cities to retain legal counsel and rate case consultants; authorizing the cities to intervene in related dockets before the Texas Railroad Commission; and suspending the proposed tariff and schedule of rates of TXU Gas Distribution Company. Action Requested: Approve Resolution No. 02 -023. Background Information: On March 1, 2002, TXU Gas Distribution Company filed a Statement of Intent with 111 cities to increase the rates charged for natural gas service. The purpose of this resolution is to seek authorization to engage legal counsel and rate case consultants, and to intervene in related dockets before the Texas Railroad Commission, suspending the proposed rates of TXU Gas. TXU Gas has filed a request for authority to increase the rates charged for natural gas service within the North Texas Metroplex Distribution System and the Dallas Distribution System. These distribution systems include the cities on the attached lists. The change proposed would increase current rates by $33.9 million in the North Texas Metroplex Distribution System. The attached resolution authorizes the City to participate jointly with other cities in the distribution system to independently analyze the gas rate filing and to appoint a representative to a steering committee. In order to do this, the resolution also suspends the proposed effective date of the rate change for an additional 90 days. Financial Considerations: Costs of participation are anticipated to be reimbursed to the City at the end of the case. Citizen Input/ Board Review: None required Legal Review: Resolution reviewed by City Attorney Alternatives: Approve Resolution No. 02 -023 as presented or modify Resolution to suspend proposed rate increase without approval to retain legal counsel and rate case consultants. Billy Campbell, City Manager May 11, 2011 Page 2 Supporting Documents: Resolution No. 02 -023 Listing of the North Texas Metroplex Distribution System (Hard Copy) TXU Gas Distribution Executive Summary (Hard Copy) Staff Recommendation: Approve Resolution No. 02 -023 City of Southlake, Texas RESOLUTION NO. 02 -023 A RESOLUTION AUTHORIZING A STEERING COMMITTEE OF AFFECTED CITIES TO RETAIN LEGAL COUNSEL AND RATE CASE CONSULTANTS; AUTHORIZING THE CITIES TO INTERVENE IN RELATED DOCKETS BEFORE THE TEXAS RAILROAD COMMISSION; AND SUSPENDING THE PROPOSED TARIFF AND SCHEDULE OF RATES OF TXU GAS DISTRIBUTION COMPANY WHEREAS, TXU Gas Distribution Company, (hereinafter called "TXU Gas "), on March 1, 2002, filed a Statement of Intent to Change Rates with individual cities for an increase in rates; and WHEREAS, the municipality of Southlake, Texas (hereinafter called "City ") is a regulatory authority having a statutory duty to participate in such proceedings and whose citizens will be substantially affected by rates established as a result of such proceedings; and WHEREAS, the City is entitled to be reimbursed for its reasonable expenses, pursuant to the Texas Gas Utilities Regulatory Act; and WHEREAS, a steering committee of distribution system cities has been formed to facilitate and coordinate the participation of cities in the service area of TXU Gas in these rate proceedings; and WHEREAS, after having considered information from TXU Gas, it is the opinion of the City Council that the proposed Schedule of Rates should be suspended for a period of ninety (90) days from the effective date stated in TXU Gas' Statement of Intent or other documentation, as initially filed or hereafter revised, for further study, investigation, presentation of evidence and public hearing; and WHEREAS, it is in the public interest to join with other cities to review such filing and present evidence as may be appropriate before the Texas Railroad Commission, all as directed by the steering committee of affected cities; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SOUTHLAKE, TEXAS, THAT: SECTION 1. That the City Council of the City of Southlake, Texas, authorizes Sharen Elam, Director of Finance, to represent the City on the Steering Committee of affected cities (hereinafter called "Steering Committee ") and authorizes the Steering Committee of which the City is a participating member, to retain legal counsel and engage rate case consultants, and to intervene on behalf of the City in related dockets and appeals. Resolution No. 02 -023 Page 2 of 3 SECTION 2. In order to allow the City sufficient time to analyze and prepare for the hearing and decision on any requested rates, the City Council hereby suspends the operation of the proposed tariffs and Schedule of Rates, which would otherwise go into effect for a period of ninety (90) days from the effective date stated in the TXU Gas Statement of Intent, or other documentation, as initially filed or hereafter revised, i.e., suspension until midnight, July 3, 2002, and for such additional period of time as may be necessary and authorized by law. During such period of suspension, the rates in force shall be those rates in effect when the suspended schedule was first filed and shall continue in force until finally approved, modified or denied by the City Council. SECTION 3. The City should join with other participating cities to review such filing and cause to be prepared a report and recommend a rate ordinance for the consideration of all participating cities and to intervene before the Texas Railroad Commission, subject to the right to terminate such participation at any time by written notice and to act independently in the exercise of local regulatory authority. SECTION 4. The City Secretary shall cause copies of this resolution to be sent to the TXU Gas representative: Autry Warren Rate Manager, TXU Gas Distribution 1601 Bryan Street Dallas, Texas 75201 -3402 And to: Mr. Jay B. Doegey City Attorney City of Arlington Post Office Box 231 Arlington, Texas 76004 -0231 for forwarding to the Steering Committee. Resolution No. 02 -023 Page 3 of 3 PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF SOUTHLAKE ON THIS DAY OF , 2002. Mayor Rick Stacy ATTEST: Kim Bush Acting City Secretary APPROVED AS TO FORM: City Attorney Qoui H 0 '— crU)� H6L1 Z co 0 3 a i= ,„ W m V c�a x cc a z I— 0 P — L •— O a) 13 O = a) U N c0 0 O '0 >' N CO Nei ♦L L 2 a) a) it- a) as LC) - L E_ •r a) > � a E CI ca0 Cl)• �. C IF. 2 0 0 •- }r an (I) • O = a) co Ol S w V c > O 0 4 O N w 4 o c '3 E co 2 Loo L s �r- .c L y Q i O 6 -o _ la Q co 2 L •• 0 a. 0 2 'co m 4= = M a) ._ = Ma > w O 0 to O O) 0 CO ■O M = � = a) C O N M W W 0 3 •— E,f} Ic N _ 4- a) t� 0 .a) N a) y 'a) I a) ma � a 2 co N a)) cf v N U � O as C) O co 0 0 L N u) O }' O O. ALE O. O. vo >' CO co L soto L L coco X C re a 0 ._— co a o_ _J 2 W C I-- •— LLs I I I I I I L t oc zce L.- P o = r^ i 1-1 o N CO ' -' L L 4�� o o U) C) _ ._ a� C) .o N L 0- C) — G) n E N E 0 as a G) _a 0. � oE O a) V N V ii, V C iri a) 0 110 C CU N G)cn = N • V C =L co ._ ._ (0C� — o = 0 Ngr- ._ . 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