R-2072-7-02RESOLUTION NO. 2072-7-02(R)
' A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ALLEN, COLLIN
COUNTY, TEXAS, DENYING TXU GAS DISTRIBUTION'S REQUEST TO
CHANGE RATES IN THE NORTH TEXAS METROPLEX DISTRIBUTION
SYSTEM; REQUIRING PROMPT REIMBURSEMENT OF CITIES' RATE CASE
EXPENSES; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, on or about Match 1, 2002, TXU Gas Distribution, a division of TXU Gas Company filed
with the City of Allen, Texas ("City") a Statement of Intent to change gas rates in all municipalities within the
North Texas Metroplex Distribution System effective April 5, 2002; and,
WHEREAS, the City suspended the effective date of the proposed new rates for 90 days to evaluate the
reasonableness of existing rates and the merits of TXU's proposed changes; and,
WHEREAS, the City participated with other municipalities in a comprehensive review of TXU Gas
Distribution's application; and,
WHEREAS, consultants and counsel retained by the coalition of cities have recommended denial of the
Company's application based upon a report from consultants demonstrating that the revenue requirement of
the North Texas Metroplex Distribution System is being met under current rates; and,
WHEREAS, that recommendation has been endorsed by the Steering Committee of city representatives
' who have coordinated the review of TXU Gas Distribution's rate application; and,
WHEREAS, the Gas Utilities Regulatory Act provides that costs incurred by Cities in ratemaking activities
are to be reimbursed by the regulated utility.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ALLEN,
COLLIN COUNTY, TEXAS, THAT:
SECTION 1: The TXU Gas Distribution's Statement of Intent to change gas rates within the North Texas
Metroplex Distribution System be in all respects denied.
SECTION 2: The costs incurred by Cities in reviewing TXU's application be promptly reimbursed by the
Company.
SECTION 3: A copy of this resolution, constituting final action on TXU's application be sent to Autry
Warren, Rates Manager, TXU Gas Distribution, 1601 Bryan Street, Dallas, TX 75201-3402.
SECTION 4: This resolution shall become effective immediately from and after its passage
1
DULY PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF ALLEN, COLLIN
COUNTY, TEXAS, ON THIS THE 9TH DAY OF JULY, 2002.
APPROVED:
Stephen Terrell, MAYOR
ATTEST:
If Zj C -IL
Juify Mor n, CMC/AAE, CITY SECRETARY
RESOLUTION NO. 2072-7-02(R), Page 2