ORD 2001-07TOWN OF TROPHY CLUB, TEXAS
ORDINANCE NO. 2001-07
AN ORDINANCE OF THE TOWN OF TROPHY CLUB, TEXAS, APPROVING
THE GENERAL SERVICE RATES INCLUDING RATE ADJUSTMENT
PROVISIONS AND MISCELLANEOUS SERVICE CHARGES TO BE
CHARGED FOR SALES AND TRANSPORTATION OF NATURAL GAS TO
RESIDENTIAL, COMMERCIAL AND INDUSTRIAL CONSUMERS IN THE
TOWN OF TROPHY CLUB, TEXAS; PROVIDING AN EFFECTIVE DATE FOR
RATE SCHEDULES; ESTABLISHING THE MANNER IN WHICH SUCH
RATES MAY BE CHANGED, ADJUSTED AND AMENDED; IDENTIFYING
NAMED PARTIES; ESTABLISHING TERMS OF ACCEPTANCE INCLUDING
LOSS OF RIGHT TO APPEAL AND CONSIDERATION OF OFFER AS SET
FORTH IN THE STATEMENT OF INTENT; PROVIDING A CUMULATIVE
CLAUSE, PROVIDING FOR SEVERABILITY; PROVIDING FOR
ENGROSSMENT AND ENROLLMENT; AND PROVIDING AN EFFECTIVE
DATE.
WHEREAS, on February 16, 2001, TXU Gas Distribution, a division of TXU Gas
Company, filed a Statement of Intent to Change Rates within the Town of Trophy, Club, Texas,
which also included a Tariff for Gas Service in the Northwest Metro/Mid Cities Distribution System
and the supporting Cost of Service Schedules;
WHEREAS, the Tariff for Gas Service includes Rate Schedules 4100 - NW Metro/Mid
Cities System Cities, 4101 - Residential Service, 4102 - Commercial Service, 4103 - Industrial Sales,
4104 - Industrial Transportation, 4108 - 1 through 4108 - 3 - Rate Adjustment Provisions, 9001
through 9007 - Miscellaneous Service Charges and Rider 4106 - Surcharges;
WHEREAS, by acceptance and approval of TXU Gas Distribution's Statement of Intent and
proposed rate changes, the Town agrees to forego any right to participate in an appeal to the Railroad
Commission of Texas should the Company file an appeal;
WHEREAS, acceptance and approval of the proposed rate change is understood to be in
consideration of TXU Gas Distribution's offer to apply any settlement terms that are reached with
any other city and that result in a rate less than the proposed rate, to the Town of Trophy Club; and
WHEREAS, the Town is a regulatory authority having a statutory duty regarding such
proceedings and citizens of the Town will be substantially affected by the rates established as a result
of such filing.
NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE
TOWN OF TROPHY CLUB, TEXAS:
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SECTION 1.
STATEMENT OF INTENT/FILINGS
On February 16, 2001, TXU Gas Distribution, a division of TXU Gas Company (the
"Company") filed with the Governing Body of the Town of Trophy Club, Texas (the "Town"), a
Statement of Intent to Change Residential, Commercial and Industrial Rates charged to consumers
within the Town. Also filed was the Tariff for Gas Service in the Northwest Metro/Mid Cities
Distribution System ("Tarriff for Gas Service") and the supporting Cost of Service Schedules
("Schedules"). The Tariff for Gas Service includes Rate Schedules 4100 - NW Metro/Mid Cities
System Cities, 4101 - Residential Service, 4102 - Commercial Service, 4103 - Industrial Sales, 4104
- Industrial Transportation, 4108-1 through 4108-3 - Rate Adjustment Provisions, 9001 through 9007
- Miscellaneous Service Charges and Rider 4106 - Surcharges.
SECTION 2.
FIXED AND APPROVED RATES
The maximum general service rates for sales and transportation of natural gas rendered to
residential, commercial and industrial consumers within the town limits of Trophy Club, Texas by
TXU Gas Distribution, a division of TXU Gas Company, a Texas corporation, its successors and
assigns, are hereby fixed and approved as set forth in Rate Schedules 4101 - Residential Service,
4102 - Conmiercial Service, 4103 - Industrial Sales, and 4104 - Industrial Transportation included in
the Tariff for Gas Service in the Northwest Metro/Mid Cities Distribution System filed on February
16, 2001.
SECTION 3.
APPROVAL OF RATE ADJUSTMENT
The Rate Adjustment Provisions set forth in the Tariff for Gas Service as Rate Schedules
4108-1 Gas Cost Adjustment, 4108-2 Tax Adjustment, and 4108-3 Weather Normalization
Adjustment are approved.
SECTION 4.
COLLECTION OF REASONABLE CHARGES
The Company shall have the right to collect such reasonable charges as are necessary to
conduct its business and to carry out its reasonable rules and regulations. Such miscellaneous service
charges are identified in Rate Schedules 9001 through 9007 of the Tariff for Gas Service and are
approved. Services for which no charge is set out may be performed and charged for by the
Company at a level established by the normal forces of competition.
SECTION 5.
EFFECTIVE DATE OF RATE SCHEDULES
The aforesaid rate schedules herein approved shall be effective from and after the effective
date set forth in the Statement of hitent if this ordinance is passed and approved on or before that
effective date.
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SECTION 6.
CHANGES/ADJUSTMENTS AND AMENDMENTS
The rates set forth in this ordinance may be changed, adjusted and/or amended by either the
Town or Company in the manner provided by law.
SECTION 7.
NAMED PARTIES
Unless otherwise noted herein, other than TXU Gas Distribution (a named party), no person
or entity has been admitted as a party to this rate proceeding.
SECTION 8.
TERMS OF ACCEPTANCE
The Town hereby accepts and approves the proposed rates. The terms of acceptance between
the Company and Town, as stated in the February 28, 2001 letter from TXU to the Town (a copy of
which is attached and incorporated herein as Exhibit A), are as follows:
A. The Town agrees to forego any right to participate in an appeal to the Railroad
Commission of Texas should the Company file one; and
B. In consideration of such acceptance, the Company shall agree as follows:
1. If any other City in the TXU Gas Distribution System negotiates a settlement
with TXU Gas Distribution that results in rates that are less than the proposed rates as
filed by the Company with that city, the Company will offer those same settlement
terms, reflected as a percentage reduction of the rates as proposed, to the Town of
Trophy Club, such that no other city in the TXU Gas Distribution System will receive
more favorable rate treatment than that offered to the Town. For example, if a city
negotiates a settlement that results in its rates being 10% Iess than those proposed by
the Company, the Town will be offered a 10% reduction in the rates as proposed by
the Company and approved in this Ordinance.
2. The new rates will not be implemented until after June 21, 2001; and
3. Customers in the Town of Trophy Club, Texas, will not be surcharged for any
rate case expenses associated with the Statement of Intent or any appeal to the
Railroad Commission of Texas, should one be filed.
C. Should the Company fail to reach a mutually agreeable settlement offer with any
other city that results in rates that are less than the proposed rates as filed, rates in the Town
will be set as proposed in the Statement of Intent and passed in this Ordinance, and will not
be adjusted to comport with the results of any appeal.
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SECTION 9.
CUMULATIVE CLAUSE
That this Ordinance shall be cumulative of all provisions of other Ordinances and shall not
repeal any of the provisions of said Ordinances except those instances where they are in direct conflict
with the provisions of this Ordinance, in which event the conflicting provisions of such Ordinances are
hereby repealed.
SECTION 10.
SEVERABILITY CLAUSE
If any section, article, paragraph, sentence, clause, phrase or work in this Ordinance, or
application thereof to any person or circuinstance, is held invalid or unconstitutional by a Court of
competent jurisdiction, such holding shall not affect the validity of the remaining portions of the
Ordinance, and the Town Council hereby declares it would have passed such remaining portions of the
Ordinance despite such invalidity, which remaining portions shall remain in full force and effect.
SECTION 11.
ENGROSSMENT AND ENROLLMENT
The Town Secretary of the Town of Trophy Club, Texas, is hereby directed to engross and
enroll this Ordinance by copying the exact Caption and Effective Date clause in the minutes of the
Town Council of the Town of Trophy Club and by filing this Ordinance in the Ordinance records of
the Town.
SECTION 12.
EFFECTIVE DATE
That this Ordinance shall become effective from and after its date of passage in accordance
with law, and it is so ordained.
PASSED AND APPROVED by the Town Council of the Town of Trophy Chub, Texas, this
19th day of March, 2001.
Diane Cockrell( Town Secretary
Town of Trophy Club, Texas
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Marshall Engelbeck, Mayor
Town of Trophy Club, Texas
[SEAL]
APPROVED AS TO FORM;
Patricia A. Adams, Town Attorney
Town of Trophy Club, Texas
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