HomeMy WebLinkAboutOrdinance 15590ORDINANCE NO. ~~~~ O
AN ORDINANCE SUSPENDING, UNTIL THE EARi.IER OF
SEPTEMBER 25, 2003 OR THE EFFECTIVENESS OF A RATE ORDER
ADOPTED BY THE CITY COUNCIL, IMPLEMENTATION OF THE
RATE SCHEDULE PROPOSED BY TXU GAS COMPANY, AS
REFLECTED IN THE "STATEMENT OF INTENT TO CHANGE
RATES" FILED BY TXU GAS COMPANY ON MAY 23, 2003;
ESTABLISHING RATES TO BE CHARGED BY TXU GAS COMPANY
DURING THE PERIOD OF SUSPENSION; ADOPTING DECLARATIONS
ANID FINDINGS IN PREAMBLE; PROVIDING A SEVERABILITY
CLAUSE; AND PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, on May 23, .2003, TXU Gas Company ("TXU Gas") filed with the City
Secretary a "Statement of Intent to Change Rates" ("Rate Filing") under which revised rates
charged by TXU Gas would go into effect in the City on June 27, 2003; and
WHEREAS, the rates proposed in TXU Gas's Rate Filing with the City would result in
approximately an 5.54% increase in gas rates imposed by TXI.T Gas in the City of Fort Worth
(which factors in approximately a 9.58% increase in gas rates imposed by TXU Gas on
residential customers) and approximately $4.2 million in additional revenue for TXU Gas; and
WIIEREAS, pursuant to Chapters 103 and 104 of the Texas Utilities Code, the City
Council is required to (i) analyze TXU Gas's Rate Filing; (ii) conduct a public hearing in order to
determine the propriety of the proposed rate increase; and (iii) make a reasonable determination
of TXU Gas's rate base, expenses, investment and rate of return in the City; and
WHEREAS, in order to have time to analyze the Rate Filing thoroughly prior to the
public hearing on this matter, it is necessary that the City suspend implementation of TXU Gas's
proposed rate schedule from June 27, 2003 until September 25, 2003, as specifically allowed by
and in accordance with Section 104.107 of the Texas Utilities Code, or until the City Council
adopts a rate order in response to the Rate Filing; and
WHEREAS, the City has previously delivered to TXLT Gas a written statement of the
City's reasons for its suspending implementation of TXU Gas's proposed rate schedule;
NOW, THEREF®RE BE IT ORDAINED BY THE CITY COUNCIL OF THE
CITY OF FORT WORTH, TEXAS THAT:
SECTION 1.
Implementation of the rate schedule outlined in TXIJ Gas's May 23, 2003 Rate Filing
with the City is hereby suspended until September 25, 2003, pending a public hearing on the
merits, a determination by the City Council as to the propriety of the Rate Filing and the adoption
of a rate order by the City Council that establishes the rates that TXLT Gas may charge in the City.
Until September 25, 2003 or the date that a rate order adopted by the City Council is served on
TXC.T Gas, whichever is earlier, TXU Gas shall charge the same rates in the City as those that
were in effect on May 23, 2003.
SECTION 2.
All of the declarations and findings contained in the preamble of this Ordinance are made
apart hereof and shall be fully effective as part of the ordained subject matter of this Ordinance.
SECTION 3.
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
2
portions, sections or parts of sections of this Ordinance shall be and remain in full force and
effect and shall not in any way be impaired or affected by such decision, opinion or judgment.
SECTION 4.
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 certified copy of this Ordinance to
TXLT Gas.
ANI) IT IS S® ®RDAINEI).
ADOPTED AND EFFECTIVE: 6 ' ~ 7' ~3
Al'I'R®VEI) AS T® F®R1VI AND LEGALITY:
By: ~~~~2~ I/
Peter Vaky
Assistant City Attorney
M&C:~r - i3 ~ y 6
Caty of FOYt Worth, Texas
M'Ayar And Council ammun;cAtian
DATE REFERENCE NUMBER LOG NAME PAGE
6/17/03 G-13996 12SUSPEND 1 of 1
SUBJECT ADOPT ORDINANCE SUSPENDING EFFECTIVENESS OF RATE SCHEDULE FILED
BY TXU GAS COMPANY
RECOMMENDATION:
It is recommended that the City Council adopt the attached ordinance suspending implementation of a
rate schedule filed with the City by TXU Gas Company on May 23, 2003, until September 25, 2003, or
the effectiveness of a rate order adopted by the City Council, whichever is earlier.
DISCUSSION:
On May 23, 2003, TXU Gas Company ("TXU Gas") filed with the City of Fort Worth ("City") a Statement
of Intent to Change Rates in the City: The proposed rates are approximately 5.54% higher in the
aggregate than the rates that are currently in effect and would increase residential rates by 9.58%. The
rate filing would produce approximately $4.2 million per year in additional revenue for TXU Gas. TXU
Gas has proposed to implement the new rates on June 27, 2003.
Under state law, the City Council has exclusive original jurisdiction over the rates, operations and
services of any gas utility operating in the City. When such a gas utility requests a rate change that
constitutes a major change over the rates currently in effect, the City Council is required to conduct a
public hearing in -order to determine the propriety of the proposed rates. In order to have sufficient time
to analyze the rate filing, the City Council is authorized to suspend the. effectiveness of the proposed
rate schedule for up to ninety (90) days from the date proposed by the gas utility for implementation of
the new rates. During this suspension period, the City Council may establish temporary rates or allow
the current rates to continue in effect. Fallowing a public hearing on this matter, the City Council will be
asked to adopt an order that establishes the rates that TXU Gas may charge in the City. This order
must comply with and be based on rate computation standards that are established by state laws and
regulations.
City staff intends to participate in a consortium of municipalities that are also analyzing similar rate
filings in their jurisdictions. It is anticipated that the consortium will retain consultants and outside legal
counsel to assist the consortium cities in reviewing the filing and making recommendations to their
governing bodies.
FISCAL INFORMATION/CERTIFICATION:
The Finance Director certifies that this action will have no material effect on City funds.
RZ: r
Submitted for City Manager's FUND ACCOUNT CENTER AMOUNT CITY SECRETARY
Office by: (to)
Richard Zavala (Acting) 6183
Originating Department Head:
David Yett 7623 (from) APPROVED 06/17/03
ORD.# 15590
Additional Information Contact:
David Yett 7623