R-03-06-12-10C1 - 6/12/2003RESOLUTION NO. R- 03- 06- 12 -10C1
WHEREAS, on or about May 23, 2003 TXU Gas Company ( "TXU ")filed
with the City of Round Rock, ( "City ") a Statement of Intent to Increase
Rates; and
WHEREAS, on May 23, 2003 TXU filed a Statement of Intent to
Increase Rates at the Railroad Commission of Texas; and
WHEREAS, TXU has requested that the City deny the rate increase;
and
WHEREAS, the rate request by TXU is novel and complex, requiring
specialized expertise of lawyers and experts who specialize in
ratemaking proceedings initiated by public utilities; and
WHEREAS, the City needs time to analyze and study the rate
requests filed by TXU; and
WHEREAS, on a systemwide basis the TXU rate requests total almost
$70 million; and
WHEREAS, the Gas Utility Regulatory Act provides that
municipalities shall be reimbursed for their reasonable rate case
expenses by the regulated utility; and
WHEREAS, a coalition of municipalities, known as the Alliance of
TXU Municipalities ( "ATM ") has been active in rate proceedings filed at
the Railroad Commission TXU; and
WHEREAS, the City will join with other cities participating in
ATM as a steering committee in order to coordinate the hiring and
direction of legal counsel and consultants working on behalf of ATM and
the City, Now Therefore
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BE IT RESOLVED BY THE COUNCIL OF THE CITY OF ROUND ROCK, TEXAS
THAT:
1. The findings set out in the preamble to this resolution are
hereby in all things approved and adopted.
2. The effective date of the tariffs filed with the City are
hereby suspended for ninety days from the originally scheduled
effective date of June 27, 2003, in order to permit the proper review
of the TXU Statement of Intent.
3. The City is authorized to join with other cities in a
coalition of cities known as the Alliance of TXU Municipalities ( "ATM ")
and authorizes the steering committee of ATM to provide direction and
guidance to the lawyers who are representing said cities.
4. The City employs Monte Akers and Jim Boyle to represent the
City with regard to the Statements of Intent filed at the City and at
the Railroad Commission of Texas and to employ such rate experts as are
necessary as recommended by the steering committee for the Alliance of
TXU Municipalities.
5. The City is authorized to intervene at the Railroad
Commission of Texas and to appeal or appear in Court in any matter
related to the Statement of Intent filed by TXU on May 23, 2003.
6. The City, in coordination with the Steering Committee cities,
shall review the invoices of its consultants for reasonableness before
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submitting such invoices for reimbursement pursuant to Section 103.022
of the Gas Utility Regulatory Act.
7. A copy of this resolution shall be forwarded to the
appropriate designated representative of TXU as follows: Autry L.
Warren, Director Gas Regulatory, TXU Business Services, 1601 Bryan
Street, Dallas, Texas 75201 -3402.
8. This resolution shall be effective immediately upon passage.
The City Council hereby finds and declares that written notice of
the date, hour, place and subject of the meeting at which this
Resolution was adopted was posted and that such meeting was open to the
public as required by law at all times during which this Resolution and
the subject matter hereof were discussed, considered and formally acted
upon, all as required by the Open Meetings Act, Chapter 551, Texas
Government Code, as amended.
RESOLVED this 12 day of June, 2003.
CHRISTINE R. MARTINEZ, City Secre
3
WELL, Mayo
Cit of Round Rock, Texas
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June 6, 2003
City Council Meeting —June 12, 2003
10.C.1. Consider a resolution suspending TXU Gas Company's request for
a rate increase for a ninety -day period and authorizing the
participation in the Alliance of TXU Municipalities to study a rate
increase requested by TXU Gas Company.
David Kautz, Assistant City Manager
Steve Sheets, City Attorney
TXU Gas filed requests with state regulators and city governments in
its service area to raise its rates to recover investments for its pipeline
and distribution infrastructure.
Additionally, the rate filing is part of a multi -year effort to streamline
the company's 350 rate structures to six. By consolidating the rate
structures and moving to a statewide system rate structure, rates will
decrease in some cities and increase in others. This issue alone is
likely to be somewhat contentious.
The cities have 35 days to take action on the rate case filing, or new
rates will automatically go into effect on June 27. Because of the
short time frame provided, staff recommends that the request be
suspended as permitted by state law to permit review of the rate filing
documents and to formulate a response to the rate filing.
The company filed the last rate increase in May 2001.
N/A
N/A
N/A
NIA
Because of the short time frame provided, staff recommends that the
request be suspended as permitted by state law to permit review of
the rate filing documents and to formulate a response to the rate
filing.
N/A
N/A
Mayor
Nyle Maxwell
Mayor Pro-tem
Tom Nielson
Council Members
Alan McGraw
Carrie Pitt
Scot Knight
Isabel Gallahan
Gary Coe
City Manager
Jim Nuse
City Attorney
Stephan L Sheets
ROUND ROCK, TEXAS
PURPOSE. PASSION. PROSPERITY
June 30, 2003
Mr. James Blanton
Oncor Energy Delivery Company
106 E. Texas Avenue
Round Rock, TX 78664
Dear Mr. Blanton:
The Round Rock City Council approved Resolution No. R- 03- 06 -12-
10C 1 at their regularly scheduled meeting on June 12, 2003. This
resolution approves the suspension of TXU Gas Company's request for
a rate increase for a ninety-day period and authorizing the
participation in the Alliance of TXU Municipalities to study a rate
increase requested by TXU Gas Company.
Enclosed is a copy of the resolution for your files. If you have any
questions, please do not hesitate to contact David Kautz at 218 -5401.
Christine R. Martinez
City Secretary
Enclosure
CITY OF ROUND ROCK Administrative Dept., 221 East Main Street • Round Rock, Texas 78664
Phone, 512.218.5400 • Fax 512.218.7097 • www.ci.round -rock. tx.us
City Manager
Jim Nuse
City Attorney
Stephan L. Sheets
ROUND ROCK, TEXAS
PURPOSE. PASSION. PROSPERITY.
June 30, 2003
Council Members
Alan McGraw
Carrie Pitt Enclosure
Scot Knight
Isabel Gallahan
Gary Coe
Ms. Autry L. Warren
Director Gas Regulatory
TXU Business Services
1601 Bryan Street
Dallas, TX 75201 -3402
Dear Ms. Warren:
The Round Rock City Council approved Resolution No. R- 03- 06 -12-
10C1 at their regularly scheduled meeting on June 12, 2003. This
resolution approves the suspension of TXU Gas Company's request for
a rate increase for a ninety -day period and authorizing the
participation in the Alliance of TXU Municipalities to study a rate
increase request by TXU Gas Company.
Enclosed is a copy of the resolution for your files. If you have any
questions, please do not hesitate to contact David Kautz at 218 -5401.
cerely,
Mayor
Nyle Maxwell
Mayor Pro-tem Christine R. Martinez
Tom Nielson
City Secretary
CITY OF ROUND ROCK Administrative Dept., 221 East Main Street • Round Rock, Texas 78664
Phone: 512.218.540o • Fax: 512.218.7097 • www.ci, round- rock.tx.us