HomeMy WebLinkAboutOrdinance 14314ORDINANCE NO ~ ~~ 3
AN ORDINANCE SUSPENDING, UNTIL THE EARLIER OF
NOVEMBER 30, 2000 OR THE EFFECTIVENESS OF A RATE ORDER
ADOPTED BY THE CITY COUNCIL, IMPLEMENTATION OF THE
RATE SCHEDULE PROPOSED BY TXU GAS DISTRIBUTION, AS
REFLECTED IN THE AMENDED "STATEMENT OF INTENT TO
CHANGE RATES" FILED BY TXU GAS DISTRIBUTION ON JULY 28,
2000; ESTABLISHING RATES TO BE CHARGED BY TXU GAS
DISTRIBUTION DURING THE PERIOD OF SUSPENSION; ADOPTING
DECLARATIONS AND FINDINGS IN PREAMBLE; PROVIDING A
SEVERABILITY CLAUSE; AND PROVIDING FOR AN EFFECTIVE
DATE.
WHEREAS, on May 26, 2000, TXU Gas Distribution ("TXU Gas"), a division of TXU
Gas Company (formerly Lone Star Gas Company), filed with the Crty Secretary a "Statement of
Intent to Change Rates" ("Rate Filing") under which higher rates charged by TXU Gas would go
into effect in the City on July 3, 2000; and
WHEREAS, pursuant to Section 104 107 of the Texas Utilities Code, on June 13, 2000
the City Council adopted Ordinance No 14216 suspending implementation of TXU Gas's
proposed rate schedule from July 3, 2000 until September 28, 2000; and
WHEREAS, on July 28, 2000 TXU Gas filed an updated Rate Filing with the City,
which established a new proposed implementation date of September 1, 2000, and agreed to the
City's nght to suspend implementation of the schedule proposed by such updated Rate Filing for
up to ninety (90) days following such new proposed implementation date; and
WHEREAS, pursuant to Chapters 103 and 104 of the Texas Utilities Code, the City is
required to (i) analyze TXU Gas's Rate Filing, as updated, (ii) conduct a public heanng m order
to determine the propriety of the proposed rate increase; and (iii) make a reasonable
determination of TXU Gas's rate base, expenses, mvestrrient and rate of return m the Crty; and
WHEREAS, m order to have time to analyze the updated Rate Filing thoroughly prior to
the public hearing on this matter, rt is necessary that the City suspend implementation of TXU
Gas's until November 30, 2000, which is ninety (90) days following the new proposed
implementation date of September 1, 2000 and is specifically allowed by and m accordance with
Section 104 107 of the Texas Uhlrties Code;
NOW, THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF THE
CITY OF FORT WORTH, TEXAS THAT:
CF!''TTl1N 1
Implementation of the rate schedule outlined m TXU Gas's May 26, 2000 Rate Filing, as
updated by TXU Gas m its July 28, 2000 filing with the City, is hereby suspended until
November 30, 2000 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 TXU Gas may charge in the City Until November 30, 2000 or the date
that a rate order adopted by the City Council is served on TXU Gas, whichever is earlier, TXU
Gas shall charge the same rates in the City as those that were in effect on May 26, 2000
CFf TTIIN 7
All of the declarations and findings contained m the preamble of this- Ordinance are made
apart hereof and shall be fully effective as part of the ordained subject matter of this Ordinance
2
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 ~unsdichon, the remaining
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~udgment.
SECTION 4.
This Ordinance shall take effect and be in full force and effect from and after the date of
rts adoption. The City Secretary is hereby directed to deliver a certified copy of this Ordinance
to TXU Gas.
AND IT IS SO ORDAINED.
ADOPTED AND EFFECTIVE O '~ q -d0
APPROVED AS TO FORM AND LEGALITY
By.
Assistant Crty Att ey
Date• ~-2,3 ~ ~
3
City of Fort Worth, Texas
~-~A~a~r Art~l C,~runc~i( ainrrtun~cAtyan
e
DATE REFERENCE NUMBER LOG NAME PAGE
8/29/00 G-13000 12GAS 1 of 1
SUBJECT SUSPENSION OF UPDATED RATE SCHEDULE FILED BY TXU GAS DISTRIBUTION
RECOMMENDATION
It is recommended that the City Council adopt the attached ordinance suspending the implementation
of an updated rate schedule filed with the City by TXU Gas Distribution on July 28, 2000 until November 30,
2000 or the effectiveness of a rate order adopted by the City Council, whichever is earlier
DISCUSSION
On May 26, 2000, TXU Gas Distribution (TXU Gas), a division of TXU Gas Company (formerly Lone
Star Gas Company), filed with the City of Fort Worth (City) a Statement of Intent to Change Rates in the
City and the twenty-two other area municipalities which comprise what TXU Gas calls its "Fort Worth
Distribution System" 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 City is allowed to suspend the proposed rate schedule for
not longer than ninety (90) days from the date proposed by the gas utility for implementation of the new
rates. During this suspension period, the gas utility's current rates will continue in effect. Following the
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, of course, comply with and be based on rate
computation standards that are established by state laws and regulations.
On June 13, 2000 the City Council adopted Ordinance No 14216, suspending implementation of the
proposed rate schedule until September 28, 2000, and approved Mayor and Council Communication G-
12933, authorizing the City to retain Diversified Utility Consultants, Inc. to assist in the City's review of
TXU Gas's filing On July 28, 2000, TXU Gas amended its May 26, 2000 filing with new data. Under the
time periods established by state law for rate authority review, the City may now extend the suspension period
in effect from September 28, 2000 to as late as November 30, 2000 The proposed ordinance will afford the
City additional time needed to review TXU Gas's updated filing
FISCAL INFORMATION/CERTIFICATION
The Finance Director certifies that this action will have no material effect on City funds
CBj
Submitted for City Manager's FUND ACCOUNT CENTER AMOUNT CITY SECRETARY
Office by: (to)
A~~OVED
Charles Boswell 8511 ~~ ~®p oA~C~~
~
O
i
i
ti
D
H E
t CJI`
r
g
na
ng
epartment
ead:
AUG 29 2000
David Yett 7606 (from)
tr )
~~
~"` ~~''`°`~''
J
Additional Information Contact: ~
Peter Vaky 7601 City S~caotary of Che
City of Fort Worth
iex?s
Danny Reed 6125 ,
adopted ~l~dr,na~ ~Q,.:,~'~~/y