R-2299-6-04RESOLUTION NO. 2299-64")
' A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ALLEN, COLLIN
COUNTY, TEXAS, AUTHORIZING PARTICIPATION WITH OTHER CITIES IN
STUDYING POSSIBILITIES FOR MUNICIPALIZATION OF GAS DISTRIBUTION
SERVICES; AUTHORIZING SAID COALITION TO RETAIN COUNSEL AND
CONSULTANTS; AUTHORIZING LEGAL COUNSEL TO THE ALLIED
COALITION OF CITIES TO ENTER INTO DISCUSSIONS WITH TXU AND THE
ULTIMATE PURCHASERS OF TXU'S GAS UTILITIES ASSETS; AUTHORIZING
PAYMENT FROM FUNDS RETAINED BY THE STEERING COMMITTEE OF
CITIES SERVED BY TXU GAS; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City of Allen is a regulatory authority with original jurisdiction over the rates and services of
TXU Gas Distribution; and,
WHEREAS, the City's significant interest in the fairness and reasonableness of gas distribution rates and
services is demonstrated in its participation in the 137 member Allied Coalition of Cities' efforts in the recent
TXU Gas rate case before the Railroad Commission of Texas, known as GUD No. 9400; and
WHEREAS, TXU Corporation has announced its intent to sell all its gas assets and has further announced that
the bid process for such sale is closed; and,
' WHEREAS, the transfer of gas distribution assets from TXU to a new owner presents a unique opportunity and
environment in which to study the possibility of municipalization of the gas distribution system within the City;
and,
WHEREAS, it would be wise to initiate regulatory and customer contact as soon as possible with any intended
new owners or successors in interest of TXU's Gas assets; and,
WHEREAS, there are efficiencies to be gained by joining with other Cities in an evaluation of municipalization
and in initiating discussions with prospective new owners of TXU's Gas assets;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ALLEN,
COLLIN COUNTY, TEXAS, THAT:
SECTION 1. The City is hereby authorized to participate in a coalition of other cities served by TXU Gas,
including but not limited to members of the Allied Coalition of Cities that intervened in TXU's recently
completed rate case, that will jointly study possibilities for municipalization of the gas distribution system from
either a regional system or individual city approach.
SECTION 2. Said Coalition is authorized to retain legal counsel and consultants as deemed appropriate by
the representatives of participating cities.
SECTION 3. Rate counsel to ACC, Geoffrey Gay and the law firm of Lloyd, Gosselink, Blevins, Rochelle,
Baldwin & Townsend, P.C. is authorized to enter into discussions with TXU and the ultimate purchaser or
' purchasers of TXU Gas assets for the purpose of investigating municipalization or establishing appropriate
regulatory and franchising arrangements.
SECTION 4. Costs associated with Coalition efforts implementing this resolution are authorized to be paid
from funds currently retained by the Steering Committee of Cities Served by TXU Gas.
SECTION 5. This Resolution shall become effective from and after its passage.
DULY PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF ALLEN, COLLIN
COUNTY, TEXAS, ON THIS THE 22f DAY OF .LUNE, 2004.
APPROVED:
/lam
Stephenkferrell, MAYOR
ATTEST:
Shelley B. Georg C, CITY SE TARY
Resolution No. 2299-6-04(R), Page 2