O-2432-8-05ORDINANCE NO. 2432-&-05
' AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ALLEN, COLLIN
COUNTY, TEXAS FINDING, AFTER REASONABLE NOTICE, THAT CERTAIN
RATE CASE EXPENSES OF COSERV GAS LTD. ARE REASONABLE;
PROVIDING FOR RECOVERY OF RATE CASE EXPENSES; PROVIDING FOR
REPEAL OF CONFLICTING ORDINANCES; AND PROVIDING FOR AN
EFFECTIVE DATE.
WHEREAS, on or about August 25, 2004, CoSery Gas Ltd. ("CoServ" or "Company"), filed with the City of
Allen, Texas, a Statement of Intent to change gas rates in all municipalities within the CoSery System
effective October 1, 2004; and,
WHEREAS, the City has exclusive original jurisdiction to evaluate the Company's Statement of Intent as it
pertains to the distribution facilities located within the City, pursuant to Texas Utilities Code §§ 102.001(6)
and 103.001; and,
WHEREAS, the Company and the Coalition of Cities Served by CoSery ("Cities") reached an agreement as
to CoServ's filed request to increase rates; and,
WHEREAS, the agreement between the Company and the Cities was finally approved by the City of Allen,
Texas, by Ordinance No. 2371-1-05 dated January 25, 2005; and,
WHEREAS, the issue of rate case expenses incurred by the Company was severed from the Ordinance
' approving the agreement; and
WHEREAS, the City has retained jurisdiction over the rate case expense reimbursement issue as a result of
extensions of the jurisdictional deadline by CoServ, pursuant to said agreement; and,
WHEREAS, the City has previously determined that the Cities' rate case expenses are reasonable and should
be reimbursed by CoServ; and,
WHEREAS, the Cities' rate case expenses do not include the expenses incurred by the City of Denton and
Denton has agreed that its rate case expenses shall be billed to the Company separately by that city and shall
not be surcharged to any customers outside the City of Denton; and,
WHEREAS, the amount of rate case expenses incurred by the Company that were reasonable and necessary
are $260,041.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ALLEN,
COLLIN COUNTY, TEXAS, THAT:
SECTION 1. The Cities' rate case expenses have previously been found to be reasonable and shall be
reimbursed promptly by the Company.
SECTION 2. It is in the best interest of the City and its residents to approve rate case expenses incurred by
CoSery Gas Ltd., in the total amount of $260,041 and only those Company expenses are hereby found to be
reasonable and necessary.
SECTION 3. The Company is authorized to recover the rate case expenses reimbursed to the Cities,
exclusive of those incurred by the City of Denton, and the Company's rate case expenses approved herein
through a consumption -based 12 -month surcharge calculated on a system -wide basis. The surcharge shall be
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based upon anticipated system -wide volumetric consumption for the calendar year 2005, estimated by the
Company to be 28,949,610 Ccf.
SECTION 4. After submission of the Cities' expenses, the Company shall calculate the surcharge and
submit the calculation to the City. Six months after the first date on which any rate case expense surcharge is
due from customers, the Company shall submit a statement to the City showing the amount recovered by the
Company through the surcharge and the amount remaining to be recovered. The Company shall also submit a
final reconciliation to the City, not more than thirty (30) days after one year from the first date on which any
rate case expense surcharge is collected by the Company, to prove that the Company has not over -recovered
rate case expenses. Any over -recovery shall be promptly refunded by the Company. The Company may
submit the initial calculations and progress reports to the Cities' rate steering committee chairman and legal
counsel to comply with this provision, unless the City makes a written request that the calculations and
reports be submitted to the City.
SECTION 5. All relief requested by CoSery not specifically addressed herein is denied.
SECTION 6. It is hereby officially found and determined that the meeting at which this Ordinance is
passed is open to the public as required by law and that public notice of the time, place and purpose of said
meeting was given as required.
SECTION 7. A copy of this ordinance, constituting final action on rate case expense issues resulting from
the CoSery Statement of Intent filed with the City to change gas rates in all municipalities within the CoSery
System, be forwarded to the appropriate designated representative of the Company, Charles D. Harrell, Chief
Financial Officer, CoSery Gas Ltd., 7701 South Stemmons, Corinth, Texas 76210-1842, within ten (10) days.
SECTION 8. Nothing contained in this Ordinance shall be construed now or hereafter as limiting or
modifying, in any manner, the right and power of the City under law to regulate the rates and charges of
CoSery Gas Ltd.
SECTION 9. All ordinances, resolutions, or parts thereof, in conflict with this Ordinance are repealed to
the extent of such conflict.
SECTION 10. This Ordinance shall take effect immediately from and after its passage and publication of the
caption in accordance with the provisions of the charter of the City of Allen, and it is accordingly so ordained.
DULY PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF ALLEN, COLLIN
COUNTY, TEXAS, ON TITS THE 23RD DAY OF AUGUST, 2005.
APPROVED AS TO FORM:
l ,.e -0 4y"lc
Peter G. Smith, CITY ATTORNEY
APPROVED:
e4pme—�
Stephen Terrell, MAYOR
ATTEST:
Shelley B. Geo TRMC, CITY WCRMARY
Ordinance No. 2432-8-05, Page 2