HomeMy WebLinkAboutResolution 330 RESOLUTION RESOLUTION FILE NO.
WHEREAS, on October the 13th, 1975, the City Council of Fort Worth adopted
Ordinance No. 7238, which reads in part as follows:
11C(5) The amount of each net monthly bill computed at the
above rate shall be subject to the following adjust-
ments:
(a) Plus or minus the amount of any increase or decrease,
respectively, above or below the $1.0399 per MCF
level specified by the Railroad Commission of the
State of Texas, as the intra-company City gate
charge,. . .provided, however, no increase may ever
be applied retroactively, i.e. to gas already used
and consumed, and no increase may exceed by thirty-
three and one-third percent (33-1/3%) the purchased
gas cost figure of 72.29(,, per MCF utilized in arriving
at the current intra-company gate charge of $1.0399
without specific approval of the City Council.";
r
I _
`j and;
WHEREAS, the 33-1/3 figure was based upon estimates provided by the Lone
Star Gas Company as to their anticipated increases in gas cost during the calendar
year 1976; and,
WHEREAS, on February the loth, 1976, the Lone Star Gas Company notified the
City of Fort Worth that their gas cost in January of 1976 exceeded 72.29(" by
32.14(,, per MCF, which amount is substantially in excess of the limit set forth
in Ordinance No. 7238 and Lone Star did request authorization to pass on the
proposed full adjustment of 32.14(,,. That on Mardi the loth, 1976, Lone Star Gas
notified the City of Fort Worth that the gas cost for February 1976 did exceed the
72.29e,, by 30.89� which amount is also in excess of the 33-1/3% authorized in the
Ordinance No. 7238; and,
WHEREAS, the City Council is charged with the responsibility under Article
1446c, the Texas Public Utilities Regulatory Act, and more particularly, Article III,
Section 19(a) and (b) thereof:
"(a) Subject to the limitations imposed in this Act, and for the
purpose of regulating rates and services so that such rates
may be fair, just, and reasonable, and the services adequate
and efficient, the governing body of each municipality shall
have exclusive original jurisdiction over all gas utility
rates, operations, and services provided by any gas utility
within its city or town limits.
"(b) The Railroad Commission shall have exclusive appellate
jurisdiction to review all orders or ordinances of munici-
palities as provided in this Act. . .";
and,
WHEREAS, the Public Utility Regulatory Act, Article IV, Sections 24 and
25 further provides:
"Section 24. The governing body of any municipality shall
have the right to select and engage rate consultants, accountants,
auditors, attorneys, engineers, or any combination thereof, to
conduct investigations, present evidence, advise and represent the
governing body, and assist with litigation on public utility rate
making proceedings; and the public utility engaged in such proceedings
shall be required to reimburse the governing body for the reasonable
costs of such services.
"Section 25. The Commission or the Railroad Commission may
advise and assist municipalities upon request in connection with
questions and proceedings arising under this Act. Such assistance
may include aid to municipalities in connection with matters pending
before the Commission, the Railroad Commission, or the courts, or
before the governing body of any municipality, including making
members of the staff available as witnesses and otherwise providing
evidence to them.";
and,
WHEREAS, the findings of the Texas Railroad Commission in Gas Utility
Docket No. 588 was based on the Railroad Commission's determination of the
cost of gas as of February 1975; and,
WHEREAS, evidence presented by Lone Star Gas Company to the City Council
indicates that the cost of gas has significantly increased and the estimates
now provided by Lone Star Gas Company indicates that such cost will increase
by approximately another 30% during the next eight months; NOW, THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS:
-2-
That the City Manager of the City of Fort Worth and his staff as representatives
of the City Council are hereby directed and authorized to conduct hearings, receive
and compile evidence, make investigations, analyze the evidence presented, and make
recommendations to the City Council concerning all aspects of the operation and
rate structure of Lone Star Gas Company in the City of Fort Worth including, but
not limited to, the following items:
(a) A determination and valuation of the plant and equipment used
and useful in rendering gas services to the citizens of Fort
Worth.
(b) A determination of a fair rate of return required by Lone
Star Gas Company to insure its continuing capability of pro-
viding gas services to the citizens of Fort Worth.
(c) A determination of the revenue and expenses applicable to the
providing of service to the citizens of Fort Worth.
(d) A determination of a just and reasonable rate structure for
Lone Star Gas Company in Fort Worth. The rates to be determined
shall not be unreasonably preferential, prejudicial, or discrimina-
tory, but shall be sufficient, equitable, and consistent in appli-
cation to each class of consumers.
That the City Manager of the City of Fort Worth and his staff are hereby
authorized to determine what, if any, additional rate consultants, accountants,
auditors, attorneys, or engineers are needed to conduct investigations, present
evidence, exhibits, advise and represent the City Council as authorized by
Article IV, Sections 24 and 25, of the Texas Public Utility Regulatory Act and
to make appropriate recommendations to the City Council.
That the Lone Star Gas Company be notified of the adoption of this resolution,
furnished a copy thereof, and that they be directed to provide to the City Council
-3-
at a designated time and place whatever evidence it deems necessary to support
their position concerning the present and/or proposed rate structure and that
same is just and reasonable.
BE IT FURTHER RESOLVED, that this resolution be spread upon the minutes
of the City Council as a permanent record thereof.
CAdoJt,d'L— ---t--Ir76
Vow
-4-