HomeMy WebLinkAboutOrdinance 7591 ORDINANCE NO. -7 5 J
AN ORDINANCE DENYING AN IMPROPERLY SUBMITTED RATE
REQUEST FOR LONE STAR GAS COMPANY AND PROVIDING
FOR AN EFFECTIVE DATE
WHEREAS, by Resolution of the City Council of the City
of Fort Worth duly adopted on February 22, 1977, the Gas Cost
Adjustment proposed by Lone Star Gas Company was temporarily
modified to hold the same at the February level of $ .2570 per
Mcf pending inquiry and report to the Council concerning whether
or not Lone Star's profits on an annualized basis were likely to
exceed the rate of return authorized in Fort Worth Ordinance
No. 7401; and
WHEREAS, Lone Star Gas Company was unable to furnish all
relevant data to conclude the inquiry directed within the 60 day
period contemplated by the Council's Resolution (as reported by the
City Manager's Informal Report No. 2892) but did ultimately furnish
sufficient data to warrant the report and recommended conclusion as
submitted to the Council by the City Manager's Informal Report
No. 2907 dated May 19, 1977; and
WHEREAS, contemporanious with the City Manager's submission
of Informal Report No. 2907, Mr. Ben Thomson, Vice-President of Lone
Star Gas Company submitted a request to the City Council dated
May 19, 1977, that the Gas Cost Adjustment be restored, which request
was read in open session to the Council by Mr. Cunningham of Lone
Star Gas Company on May 24th, 1977, and was duly referred to the
City Manager's :office for consideration and an appropriate recommen-
dation; and
WHEREAS, the City Manager's office supplied the Council
with Informal Report No. 2911 dated May 26, 1977, in response to its
request and the Council thereafter, at its regular meeting on
May 31st, 1977, and despite same misgivings concerning the
quantity and billing for lost and unaccounted for gas by Lone
Star, did approve Mr. Ben Thomson's request by permitting the
proposed June Gas Cost Adjustment to become effective without
taking any action to either continue the rates at the February
1977 level or set the rates at some other level; and
WHEREAS, no request was made by Lone Star for a rate
or surcharge to recover gas costs allegedly unrecovered during
the months of March, April and May of 1977 due to the "freeze"
imposed by the council's Resolution of February 22, 1977, until
Mr. Ben Thomson appeared before the City Council on July 26, 1977,
when he stated he was trying to get by without such a request but
if additional freezes were made, he would have no choice but to
solicit it, and
WHEREAS, following the City Council's action on July 26,
1977, in disallowing the proposed August Gas Cost Adjustment pass-
through at 44.1 cents per Mcf and leaving the "pass-through" at
July's level of 30.59 cents per Mcf, Lone Star Gas Company filed
suit in the 153rd District Court of Tarrant County, Texas, seeking
injunctive relief of, from and against the City of Fort Worth and
the City Council of the City of Fort Worth; and
WHEREAS, the City Council has no desire or disposition
to interfere with the due course of law and justice but does find
and determine that a clear statement of its findings and action
with respect to alleged unrecovered gas costs allegedly incurred
by Lone Star during the month of March, April and May of 1977,
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is desirable and needed now that it is manifest a claim for such
alleged unrecovered costs is being made in the amount of
$210,516.39;
NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF
THE CITY OF FORT WORTH, TEXAS:
SECTION 1.
That being apprised of a rate increase request being
urged by Lone Star Gas Company in the 153rd District Court of
Tarrant County, Texas, by receipt through service upon the City
and the individual members of the City Council of the City of
Fort Worth of the Plaintiff's First Original Petition in Cause
No. 153-45179-77 styled Lone Star Gas Company vs. City of Fort
worth et al, which said Petition alleges entitlement to some
$210,516.39, the City Council finds that:
a. It has exclusive original jurisdiction of any request
to increase rates or charges for natural gas service within the
municipal limits of the City of Fort Worth under the provisions
of Articles 1446c and 6058, Revised Civil Statutes of Texas;
b. It has not received an application from Lone Star
Gas Company, directed to it, for an increase in Lone Star's rates
or charges to recoup an alleged deficiency of $210,516.39 in
accordance with and under the terms of Articles 1446c and/or
6058, Revised Civil Statutes of Texas; and
C. Lacking a proper application, such rate request
irregularly submitted and undocumented as filed with the 153rd
District Court of Tarrant County, Texas, should be and is,
hereby, DENIED.
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SECTION 2.
That this ordinance shall take effect on and after the date
of its passage and it is so ordained.
APPROVED AS TO FORM AND LEGALITY:
City Attorney
ADOPTED: August 9, 1977
EFFECTIVE: August 9. 1977