HomeMy WebLinkAboutIR 8253 INFORMAL REPORT TO CITY COUNCIL MEMBERS NO. 8253
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o�`o"Tw To the Mayor and Members of the City Council
June 6, 2000
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LOCAL GAS RATES—FILED MAY 26, 2000
On May 26, 2000 TXU - Lone Star Gas Company (The "Company") filed a request to increase
the rates which it charges for natural gas service in Fort Worth and twenty two other cities in its
Fort Worth Distribution System. The Company proposes to increase rates by approximately
8.8% effective July 3, 2000.
Under the Gas Utility Regulatory Act (the "Act") the City Council has original jurisdiction over
the rates of gas utilities. Secondary or appellate jurisdiction rests with the Railroad Commission
of Texas.
Before the City Council makes a decision concerning a rate request, the Act provides that the
Council shall investigate the need for an increase and hold a public hearing. The Act authorizes
the City Council to engage consultants to assist in its study of the rate request and requires that
the utility pay the cost of the study.
The Act also authorizes the City Council to suspend implementation of the increased rates for 90
days beyond the date that the rates would ordinarily go into effect. Such additional time is to
roll allow Council to study the request. After the 90 day suspension, the Company is authorized to
place the proposed rates into effect under bond. A portion of the rates placed into effect under
bond is refundable to gas customers if final rates, as a result of any appeal, are lower than the
rates under bond.
Staff is examining the Company's current rate request. At the City Council meeting on June
13`h, Staff will make a recommendation to City Council concerning suspension of the proposed
rates, the engagement of a consultant and related matters.
Basic gas rates in Fort Worth have not changed since 1995 when the present rates took effect. In
the 1995 rate case, City Council suspended the rate increase and authorized the engagement of
William McMorries and Associates as consultants to analyze the request. On August 8, 1995,
Council approved an increase recommended by the consultants that was less than the Company's
original request. The Company did not appeal the Council's decision.
Bob Terrell
City Manager
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ISSUED BY THE CITY MANAGER FORT WORTH,TEXAS