R-2326-9-04RESOLUTION NO. 2326-9-04(R)
' A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ALLEN, COLLIN
COUNTY, TEXAS, SUSPENDING THE EFFECTIVE DATE OF COSERV GAS
LTD'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 COSERV SYSTEM 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;
REQUIRING NOTICE OF THIS RESOLUTION TO THE COMPANY; AND
PROVIDING AN EFFECTIVE DATE.
WHEREAS, on or about August 25, 2004, CoSery Gas Ltd. ("CoServ"), filed with the City of Allen a
Statement of Intent to change gas rates in all municipalities within the CoSery System; and,
WHEREAS, it is reasonable for the City of Allen to cooperate with other cities in a review of the Company's
application and 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 rate
proceedings filed at the Railroad Commission.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ALLEN,
TEXAS, COLLIN COUNTY, TEXAS, THAT:
SECTION 1. The effective date of the tariff changes submitted by CoSery on or about August 25, 2004, be
suspended to permit adequate time to review the proposed changes and to establish reasonable rates.
SECTION 2. The City is authorized to cooperate with other Cities within the CoSery System to hire and
direct legal counsel and consultants, negotiate with the Company, make recommendations regarding
reasonable rates and to direct any necessary litigation associated with an appeal of a rate ordinance and the
rate case filed at the Railroad Commission.
SECTION 3. The City's reasonable rate case expenses shall be reimbursed by CoSery
SECTION 4. The City is authorized to intervene in any appeal at the Railroad Commission regarding
CoServ's rate case filed on or about August 25, 2004.
' SECTION 5. A copy of this suspension resolution be sent to Charles D. Harrell, Chief Financial Officer,
CoSery Gas Ltd, 7701 South Stemmons, Corinth, Texas 76210-1842.
DULY PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF ALLEN, COLLIN
COUNTY, TEXAS, ON THIS THE 14TH DAY OF SEPTEMBER 1004.
APPROVED:
Stephen Terrell, MAYOR
ATTEST:
Shelley B. Georg C, CITY SgeRETARY
Resolution No. 2326-9-04(R), Page 2