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
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