ORD 2003-17TOWN OF TROPHY CLUB, TEXAS
ORDINANCE NO. 200- — 17
AN ORDINANCE OF THE TOWN OF TROPHY CLUB, 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; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, on or about May 23, 2003, TXU Gas Company (the "Company") filed
with the Town of Trophy Club, Texas ("Town"), a Statement of Intent to change gas rates in all
municipalities within the Company's statewide gas utility system effective .lune 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 TXU'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 Town 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, counsel for ACC, upon review of the Company's filing and upon
consultation with various consultants, recommends findings that the Company's proposal is
unjustified and unreasonable.
NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE
TOWN OF TROPHY CLUB, TEXAS:
SECTION 1. 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
than increased; and (e) the TXU filing should be denied pursuant to agreement with the
Company; and is therefore den ted in all respects.
SECTION 2. The costs incurred by the Town in reviewing the Company's application
be promptly reimbursed by the Company.
SECTION 3. This Ordinance shall become effective immediately from and after its
passage, as the law and charter in such cases provide.
SECTION 4. 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 5. A copy of this ordinance, constituting final action on the Company's
application, 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 by the Town Council -s the Tow f Trophy Club,
Texas, on this the 15th day of September, 2003.
ayor
Town of Trophy Club, Texas
Effective Date: �� b� C- ,�� .,,
01-, 2 , f%
'own Secreta y
Town of Trophy Club, Texas O� [ROPY y
APPROVED TO AS FORM:
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Town Attorney
Town of Trophy Club, Texas