R-2054-6-02RESOLUTION NO. 2054-6-02(R)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ALLEN, COLLIN
COUNTY, TEXAS, AUTHORIZING INTERVENTION IN GAS UTILITIES
DOCKET 9304 AT THE RAILROAD COMMISSION; AUTHORIZING
PARTICIPATION IN A STEERING COMMITTEE WITH OTHER CITIES SERVED
BY TXU AND REQUIRING REIMBURSEMENT FROM TXU LONE STAR
PIPELINE OF CITIES' REASONABLE RATE CASE EXPENSES; AND
PROVIDING AN EFFECTIVE DATE.
WHEREAS, TXU Lone Star Pipeline (LSP) filed a second statewide surcharge case on May 8, 2002,
(designated as GUD 9304) requesting authority to establish a monthly fee to recover future, unpredictable
expenses associated with implementation of a pipeline integrity and safety assessment (ISA) program; and,
WHEREAS, the requested surcharge in GUD 9304 will have an immediate impact of $1.25 to $2.50
annually per residential customer, with the potential for much higher increases in the future becoming
automatic once the surcharge mechanism is approved and becomes a precedent for automatic pass-through of
costs associated with a pipeline safety cost recovery program; and,
WHEREAS, Cities served by TXU have a history of cooperation in gas rate matters and such cooperation
in GUD 9304 will be efficient and cost effective in evaluating whether the proposed costs should be
recovered in piecemeal ratemaking through a surcharge; and,
WHEREAS, Pursuant to Utilities Code § 103.023, municipalities have standing to intervene in this case;
and,
WHEREAS, Pursuant to Utilities Code § 103.022, municipalities are entitled to reimbursement of their
reasonable costs of participation.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ALLEN,
COLLIN COUNTY, TEXAS, THAT:
SECTION 1. That the City Council of the City of Allen, Texas, authorizes the Assistant to the 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 consultants, and to intervene on behalf of the City in related dockets and appeals.
SECTION 2. That the Steering Committee formed to oversee this effort on behalf of cities is authorized to
take all reasonable steps before the Railroad Commission and before the Courts as may be necessary in an
appeal of a Commission Order.
SECTION 3. That LSP is hereby directed to promptly pay cities' rate case expenses as they are incurred.
SECTION 4. The City Secretary of this municipality is hereby directed to deliver a copy of this Resolution
to TXU Gas Distribution representative, Mr. Autry Waren, Rate Manager TXU Gas Distribution, 1601
' Bryan Street, Dallas, TX 75201-3402 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 5. This Resolution shall become effective immediately from and after its passage.
DULY PASSED AND APPROVED BY THE CTTY COUNCIL OF THE CITY OF ALLEN, COLLIN
COUNTY, TEXAS, ON THIS THE 11" DAY OF JUNE, 2002.
APPROVED:
4
Stephen fermll, MAYOR
ATTEST:
J y Mo n, CMCIAAE, CITY SECRETARY
Resolution No. 2054-6-02(R), Page 2