HomeMy WebLinkAbout(0095) CoServ Gas - Gas Rate Ordinance CFW 5.26.21.PDFORDINANCE NO.
ORDINANCE OF THE CITY OF FORT WORTH FINDING
THAT THE SETTLEMENT AGREEMENT BETWEEN THE
CITY AND COSERV GAS, LTD. IS REASONABLE;
ORDERING COSERV GAS, LTD. TO IMPLEMENT THE
RATES AGREED TO IN THE SETTLEMENT
AGREEMENT; REQUIRING REIMBURSEMENT OF
CITIES' RATE CASE EXPENSES; REPEALING ANY
PREVIOUSLY ADOPTED ORDINANCES IN CONFLICT
HEREWITH; PROVIDING SERVERABILITY; FINDING
THAT THE MEETING AT WHICH THIS ORDINANCE IS
PASSED IS OPEN TO THE PUBLIC AS REQUIRED BY
LAW; PROVIDING AN EFFECTIVE DATE; AND
REQUIRING NOTICE OF THIS ORDINANCE TO THE
COMPANY AND LEGAL COUNSEL
WHEREAS, on or about November 13, 2020, CoSery Gas, Ltd. ("CoServ" or
"Company"), pursuant to Gas Utility Regulatory Act ("GURA") § 104.102 filed a Statement of
Intent to Increase Rates with the Railroad Commission of Texas (the "Commission") within the
unincorporated areas it serves in the State of Texas and filed with the City of Fort Worth ("City")
a Statement of Intent to change gas rates in all municipalities exercising original jurisdiction
within the Company's service area, effective January 23, 2021; and
WHEREAS, the Company agreed to extend the proposed effective date to March 14,
2021; and
WHEREAS, the City has exclusive original jurisdiction over the rates, operations, and
services of a gas utility within the municipality, pursuant to GURA § 103.001; and
WHEREAS, GURA § 103.021 grants a municipality authority to require a utility to
submit information as necessary to make a reasonable determination of rate base, expenses,
investment, and rate of return in the municipality; and
WHEREAS, on or about January 12, 2021, the City passed Resolution No. 5330-01-
2021 to suspend the effective date of the Company's proposed rate change for ninety (90) days
pursuant to GURA § 104.107; and
WHEREAS, the City joined with other similarly situated cities, the Steering Committee
of Cities Served by the Company Gas, Ltd. ("CoSery Gas Cities"), to conduct a review of the
Company's application by hiring and directing legal counsel and consultants to prepare a
common response and to negotiate with the Company's and direct any necessary litigation; and
WHEREAS, on or about May 14, 2021, the CoSery Gas Cities reached a Settlement
Agreement resolving all issues relating to the Company's Statement of Intent to Increase Rates;
and
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CoSery Gas — Gas Rate Ordinance
WHEREAS, the CoSery Gas Cities members and attorneys recommend that the City of
Fort Worth approve this Settlement Agreement setting rates; and
WHEREAS, GURA § 103.022 provides that reasonable costs incurred by cities in
ratemaking activities are to be reimbursed by the regulated utility.
THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
FORT WORTH, TEXAS:
Section 1. That based on the information previously provided to the City Council and
all information currently before the City Council, the City Council approves the Settlement
Agreement, attached hereto as Attachment "A", reached between CoSery Gas Cities and the
Company, and hereby finds that the rates and terms agreed to in the Settlement Agreement are
just and reasonable.
Section 2. That the City orders and authorizes the Company to implement the rates
agreed to in the Settlement Agreement.
Section 3. That the rates, terms and conditions established by the Settlement
Agreement shall be effective for meters read on or after the effective date of the Commission's
Final Order.
Section 4. That the City's reasonable rate case expenses stated in the Settlement
Agreement are just and reasonable and shall be reimbursed by the Company.
Section 5. If any provisions or conditions of this Ordinance directly conflict with any
provisions or conditions of other Ordinances previously adopted by the City Council, the
conflicting provisions of such previously adopted Ordinances are hereby repealed.
Section 6. If any portion, section or part of a section of this Ordinance is
subsequently declared invalid, inoperative or void for any reason by a court of competent
jurisdiction, the remaining portions, sections or parts of sections of this Ordinance shall be and
remain full force and effect and shall not in any way be impaired or affected by such decision,
opinion or judgement.
Section 7. That 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 the public notice of the
time, place, and purpose of said meeting was given as required.
Section 8. This Ordinance shall take effect and be in full force and effect from and
after the date of its adoption. The City Secretary is hereby directed to deliver a copy of this
Ordinance shall be sent to CoServ, care of Charles Harrell, CoSery Gas, Ltd. 7701 South
Stemmons Freeway, Corinth, Texas 76210 (CHarrell@coserv.com), and to Thomas Brocato at
Lloyd Gosselink Rochelle & Townsend, P.C., 816 Congress Avenue, Suite 1900, Austin, Texas
78701 (tbrocato@lglawfirm.com).
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CoSery Gas — Gas Rate Ordinance
AND IT IS SO ORDAINED.
ADOPTED AND EFFECTIVE this
ATTEST:
Mary J. Kayser
City Secretary
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CoSery Gas — Gas Rate Ordinance
day of
2021.
APPROVED AS TO FORM AND LEGALITY:
Christopher Austria
Assistant City Attorney