R-2175-6-03RESOLUTION NO. 2175-6-03(R)
' A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ALLEN, COLLIN
COUNTY, TEXAS, SUSPENDING THE EFFECTIVE DATE OF TXU GAS
DISTRIBUTION'S REQUESTED RATE CHANGES TO PERMIT THE CITY TIME
TO STUDY THE REQUEST AND TO ESTABLISH REASONABLE RATES;
APPROVING COOPERATION WITH OTHER CITIES WITHIN THE TXU GAS
DISTRIBUTION SYSTEM TO CREATE A STEERING COMMITTEE TO HIRE
LEGAL AND CONSULTING SERVICES AND TO NEGOTIATE WITH THE
COMPANY AND DIRECT ANY NECESSARY LITIGATION; REQUIRING
REIMBURSEMENT OF CITIES' RATE CASE EXPENSES; AUTHORIZING
INTERVENTION IN THE PROCEEDING AT THE RAILROAD COMMISSION;
AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, on or about May 23, 2003, TXU Gas Distribution, a division of TXU Gas Company, filed with
the City of Allen a Statement of Intent to change gas rates in all municipalities within the TXU Gas
Distribution System; and,
WHEREAS, the City of Allen, 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 the rates
established as a result of such proceedings; and,
' WHEREAS, it is reasonable for the City of Allen to cooperate with other cities in a review of the Company's
application and create a Steering Committee to coordinate the hiring and direction of legal counsel and
consultants and to negotiate with the Company and direct any necessary litigation; and,
WHEREAS, the Gas Utility Regulatory Act grants local regulatory authorities the right to suspend the
effective date of proposed rate changes; and,
WHEREAS, the Gas Utility Regulatory Act provides that costs incurred by Cities in ratemaking activities are
to be reimbursed by the regulated utility; and,
WHEREAS, the Gas Utility Regulatory Act grants local regulatory authorities the right to intervene in into
proceedings filed at the Railroad Commission.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ALLEN,
COLLIN COUNTY, TEXAS, THAT:
SECTION 1. The effective date of the tariff changes submitted by TXU Gas Distribution on or about
May 23, 2003, shall be suspended for a period of ninety (90) days from the effective date stated in the TXU
Gas Statement of Intent, to permit adequate time to review the proposed changes and to establish reasonable
rates. 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 2. The City Council of the City of Allen, Texas, authorizes the Assistant City Manager 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, negotiate with the Company, make recommendations to the City regarding
reasonable rates and to direct any necessary litigation associated with an appeal of a tate ordinance and the
rate case filed at the Railroad Commission.
SECTION 3. The City's reasonable rate case expenses shall be reimbursed by TXU Gas Distribution.
SECTION 4. The City is authorized to intervene in TXU Gas Distribution's rate case filed at the Railroad
Commission on or about May 23, 2003.
SECTION 5. The City Secretary of this municipality is hereby directed to deliver a copy of this Resolution
to the local representative of TXU Gas Distribution, Mr. Kevin Slay, Area Manager, Oncor Distribution
Division, 400 W. Virginia, McKinney, TX 75069 and to Mr. Jay B. Doegey, City Attorney, City of
Arlington, P. O. Box 231, Arlington, TX 76004-0231 for forwarding to the Steering Committee.
SECTION 6. This resolution shall become effective immediately from and after its passage.
DULY PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF ALLEN, COLLIN
COUNTY, TEXAS, ON THIS THE 10m DAY OF JUNE, 2003.
APPROVED:
A p
00
Stephen erre]%MAYOR
' ATTEST:
Shelley B. George, TRMC, CITY SECRETARY
Resolution No. 2175-6-03tR1, Page 2