HomeMy WebLinkAboutOrdinance 18440-01-2009ORDINANCE NO. i$4~I0-01-2009
AN ORDINANCE SUSPENDING IMPLEMENTATION OF THE RATE
SCHEDULE PROPOSED BY COSERY GAS, LTD., AS REFLECTED In
THF, 44STATELtEtiT OF INTENT TO INCRE.-ISE GAS I~'TILI`TY RATES"
FILED BY COSERY GAS, LTD. ON DECEMBER I8, 2008, UNTLI. 'THE
LATER OF APRIL 23, 2009 OR THE LATES'C DATE PERMITTED BY
LAW, OR UNTIL THE EARLIER DATE OF EFFECTIVENESS OF A
RATE ORDER ADOPTED BY THE CITY COIiNCIL; ESTABLISHIiYG
RATES `I'O BE CHARGED BY COSERV GAS, LTD. DURING THE
PERIOD OF SUSPENSION; ADOP`T`ING DECLARATIONS AND
FINDINGS IN THE PREAMBLE HEREOF; PROVIDING A
SEVERABILITY CLAUSE; AND PROVIDING FOR AN EFFECTIVE
DATE.
WHEREAS, on December 18, 200&, CoServ Gas, Ltd. ("CoServ") filed lx'ith tha City a
"Statement of intent to Increase Gas Utility Rates" ("Rate Filing") under which proposed
increased rates charged by CoServ tii~ould go unto effect in the City an ,}anualy 23, 2009; and
WHEREAS, the rates proposed in CoServ's Rate Filing w=ith the City would result in
approximately an 5"ro increase in gas sates imposed by CoServ in the City anti approximately
$2.9 million in additional rep+enue per year for CoServ; and
WHEREAS, pursuant to Chapters 103 and }0~ of the Texas Utilities Code, the City
Council is required to (i} analyze CoSer-v's Rate Filing; {ii} conduct a public hearing in order to
detenninc the propriety of the proposed rate increase; and (iii} make a reasonable detc~nrination
of Cc7Serv="s rata base, expenses.. inveshncnt anil rate of rt tum in the City; ~3nd
~YHEREAS, in carder to 17ave time to analyze the Rate Piling ths~roughly prior tc7 the
}li.tt?f li: }?Gart?Y£„ e?+3 t},Sg Fl3a tt',Y'; li. t~ rlc~ti~~<~St t.nat, a:, f11 }:,k4retl. 1~k4' aki{} i2? di=t;i?rf}aT2s:4' t3 Ii.15 ~3i;c.'t3on.
Itt~#.lfl? oftis~ Texas ttilitick C'cxlc, the t'cf~.' suspend cmple~t~eratntc73r c+i t°oSerk'i t>ropt+scd rz3te
schedcile 6°(3]Ii January 2 3, 2009 until the Inter of _~pri} 23, 20t)~ or the late4t date pc~rrnittecl by
Iaw, or until the date oP nffectiveness of a rate order adopted by the City Council in response to
the Rate Filing; and
R'IIERF,AS, the City has previously delivered to CoServ a written statement of the
City's reasons for its suspending implementation of CoServ's proposed rate sohedule;
NOW, THEREFORE BE I`I' ORllAINED BY THE CITY COUNCIL OF TIIE
CITY OF FORT WORTH, TEXAS THAT:
SECTION 1.
Implementation of the rate schedule outlined in CoServ's December 18, 2fl08 Rate Filing
with the City is hereby suspended until the later of April 23, 2009 or the latest date permitted by
law, pending and subject to a public hearing an the merits, a determination by the City Council as
to the propriety of the Rate Filing and adoption of a rate order h}° the City Council that
establisl?es the rates that C'oServ may charge in the City- Until the later of April 23, 20fl9 or the
latest date permitted by law for suspension of` implementation of the rate schedule outlined in
CuSer~"'s December 18, 2008 Rate Filing, or until the earlier date of effectiveness of a rate order
adopted by the Cit}' Council that establishes the rates that CoSen" may charge in the Ch", CoSetti"
shall char~fn the same rains in the City as thorn that ticrern in nflECt c?n December 1 FS, 20t?8.
~I°.c:T~c~ ~ a.
,~~1 i?t~ElZn {int:.'iG.YaLI UT75 and ltnthnt5 cc?ntatnntil in tlin 17reilm~?in. S}t Ll?:ti t~2"{it nkit?tnnre Erladn
zs part hereof' aiul tilrtrll be fully nt'Eecti4e <3s part ot`~ire oYdairted sul?ject c??<3tter of thEy C7rclinancn.
SECTION 3.
Pf any portion, section or part of a section of this Ordinance is subsequently declared
invafid, inoperatiae or void for anti reason by a court of competent jurisdiction, the remaiziing
portions, sections or pans of sections of this Ordinance shall be and remain ui full fr>ree and
effect and shall not in any way be impaired or affected lay 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 uipy of this Ordinance to
CoServ Gas, Ltd., Attn: Charles D. Harrell, Chief Financial Officer, 7701 South Stemmons,
Corinth, Texas 762 1 0-1 842.
AND IT IS SO ORDAINED.
AL?Of'TEf? AtiI7 EFFECTIVE: Januan~ I3~2004)
APPROS'ED AS `I'O FORYI,=1ND LEC.AGITY:
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41c4:{`:fs-16423
City of Fort Worth, Texas
Mayor and ~auncil Cammunica~ian
COtthICIL ACTION: Approved ort 'fl'#3120E}9 - C}rd. Nlo. 9 -01-2o0S
DATE: Tuesday, January 13, 2009 REFERENCE NO.: G-16423
LOG NAME: 13CSRATESUSP
SUBJECT:
Adopt Ordinance Suspending Rate Increases Proposed by GaServ Gas, Ltd., and Retention of Gonsultants
to Study Propriety of Proposed Rate Increases
RECOMMENDATtON:
It is recommended that the City Council adapt the attached ordinance which:
1. Suspends the implementation of the Rate Increases filed with the City by GoServ Gas, Ltd., on
December 18, 2008; and
2. Authorizes the City Manager to cooperate with other cities served by GaServ Gas, Ltd., to hire and
direct legal counsel and consultants in regard to the rate increase filing.
DISCUSSION:
On December 7, 2404, the Gity Gouncil adopted Ordinance Na. 16217 granting GoServ Gas, Ltd.,
(GoSenr} a franchise to provide natural gas service to customers in Fart Worth. CoServ's initial rates
became effective February 1, 2045.
On December 18, 2448, CoServ filed with the City of Fork Worth (Gity} a Statement of Intent to Increase
Rates. The proposed new rates will increase Gompany revenues by $2.9 million, an overall total revenue
increase of approximately five percent. The proposed effective date far the new rates is January 23, 2009,
thirty-five days after the filing.
Under state law, the City 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 increase that constitutes a major
change over the rates currently in effect, the City 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
Gity is allowed to suspend the proposed rate schedule up to 94 days. During this suspension period, the
gas utility's current rates will continue in effect. Following the public hearing on this matter, the City
Counc;ii will be asked to adopt a final order or decisior, in the rate case.
Gity staff recommends that the Cr.ity ~:oaperate ~rvith othe° ~~ifies sen.~ed by CoServ to hire and drrect iegal
caunsei and consuktants, negotiate with the Company.. make rece;rr~menda:ions to the City regarding
reasonable rotas and to direct any necessary Ittigatian asscciaked with the rate adjustments filed with the
City or with the Railroad Commission.
F[SCAt.. INFORMAT€ON A CERT€F€CATION:
_ _ _
~€€"r£:? F?rB,'-AYI.`. ~~,3~ fr"1aC !7yje?":'f-;ni ~.~*~'.'"+.'~~ *.> ,...~:re~t€t'~...w~.`YtE*X. r'i 1',`"r3t at tm~ .`3`'..;ttx'.}:i Nd;€I YSav~' .,^ tT':r"3te•"i :-;!f-u~";t :,~4t ttv.
FUND CENTERS:
TO FundiAccounttCenters
__
CERTIFICATIONS:
Submitted for_Cty Manager's Oftce by;
Originating Department Head:.
Additional Information Contact:
FROM_ FundtAccou ntiCenters
Fernando Costa (6122)
Randle Harwood {6101)
Danny Reed (6145}
ATTACHMENTS
1. CoServ Gas. Rate Suspens€on C>rd 2(}09.doc (Public)