HomeMy WebLinkAboutOrd 440 Denying TXU Gas Company request for a rate increaseTOWN OF WESTLAKE
ORDINANCE NO. 440
AN ORDINANCE OF THE TOWN OF WESTLAKE, TEXAS, DENYING TXU
GAS COMPANY'S REQUEST TO CHANGE RATES IN THIS MUNICIPALITY,
AS A PART OF THE COMPANY'S STATEWIDE GAS UTILITY SYSTEM;
PROVIDING A REQUIREMENT FOR A PROMPT REIMBURSEMENT OF
COSTS INCURRED BY THE TOWN; FINDING THAT THE MEETING AT
WHICH THIS ORDINANCE IS PASSED IS OPEN TO THE PUBLIC AS
REQUIRED BY LAW; AND PROVIDING FOR NOTICE OF THIS ORDINANCE
TO TXU GAS COMPANY.
WHEREAS, on or about May 23, 2003, TXU Gas Company (the "Company")
filed with the Town of Westlake ("Town"), a Statement of Intent to change gas rates in all
municipalities within the Company's statewide gas utility system effective June 27, 2003;
and
WHEREAS, the Town has previously extended the effective date of the
Company's rate filing; and
WHEREAS, the Town has exclusive original jurisdiction to evaluate the
Company's Statement of Intent as it pertains to the distribution facilities located within
the Town, pursuant to Texas Utilities Code § § 102.001 (b) and 103.001; and
WHEREAS, the Texas Utilities Code § 103.022 provides that costs incurred by
the Town in ratemaking activities are to be reimbursed by the regulated utility; and
WHEREAS, the Town is participating with a coalition of over 120 other Cities
in opposition to the Company's filing at the Railroad Commission, said coalition being
known as Allied Coalition of Cities ("ACC"), in GUD No. 9400 pending at the
Commission; and
WHEREAS, ACC and the Company have reached a procedural agreement
regarding the schedule for processing GUD No. 9400 that includes TX -U's concession to
allow one hundred fifteen (115) additional days to process the rate case and ACC's
commitment that member Cities expedite the process of getting city action appealed to
the Commission; and
WHEREAS, ACC and TXU jointly endorse the Town's denial of the Company's
rate application pending before the Town; and
WHEREAS, upon review of the Company's filing and consultation with counsel
for ACC and various consultants, the Town finds that the Company's proposal is
unjustified and unreasonable.
NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF
ALDERMEN OF THE TOWN OF WESTLAKE, TEXAS, THAT:
SECTION 1:That all matters stated in the preamble are hereby found to be true
and correct and are incorporated herein by reference as if copied in their entirety.
SECTION 2: The Company's Statement of Intent to change gas rates within the
Town, as part of the Company's statewide gas utility system, is found to be unreasonable
because: (a) TXU's requested return on equity is excessive, generating more than 86% of
the requested increase in rates; (b) the basis for TXU's proposed consolidations (of
regional distribution systems and of pipeline costs with distribution costs) has not been
established; (c) the Town's jurisdiction to increase pipeline rates has not been established
and, therefore, the proposed pipeline cost increases should be disallowed; (d) revenue
requirements should be reduced rather that increased; and (e) the TXU filing should be
denied pursuant to agreement with the Company; and is therefore denied in all respects.
SECTION 3: The costs incurred by the Town in reviewing the Company's
application be promptly reimbursed by the Company.
SECTION 4: This Ordinance shall become effective immediately from and after
its passage, as allowed by law.
SECTION 5: That it is hereby officially found and determined that the meeting at
which this Ordinance is passed is open to the public as required by law and that public
notice of the time, place and purpose of said meeting was given as required.
SECTION 6: A copy of this Ordinance, constituting final action on the
Company's application, shall be forwarded to the appropriate designated representative of
the Company within 10 days as follows: Autry L. Warren, Director Gas Regulatory, TXU
Business Services, 1601 Bryan Street, Dallas, Texas 75201-3402.
PASSED AND APPROVED ON THIS 14' DAY OF JULY 2003.
Scott Bradley, Mayor
ATTEST:
G' ger rosswy, Town Se •etary
APPROVED AS TO FORM:
Trent Petty, To C ager
i f
UA PUBLISHER of the Alliance Regional
Newspapers of Haslet, Texas, a newspap i er of general circulation which has been
published in Denton County and Tarrant County regularly and continuously for a period
of one year prior to the first day of publication of this notice, solemnly swear that the
notice heret1's a`• was published in the Alliance Regional Newspapers, on the
following dates, to -wit:
Town of Westlake
4 V
1
-,/Publisher Y
SUBSqRIBED AND SWORN TO before meon the day of
20 � to certify which witness my hand and official seal.
15�
CLHRINA EAVER
STINA M. WEAVER
blic
Nottary Public
{,TEXAS STATE l'), TEXAS
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"n x, 08/09 603
My. Cormin, Exp, 08/09,112003
My Commission Expires:
Alliance Regional Newspapers