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<br />Commission in a Dallas distribution case at the end of last year. Despite the large percentage <br />increase in industrial rates, TXU cannot charge those rates until existing contracts with industrial <br />customers expire. If a given industrial customer has competitive fuel options that customer may <br />remain a customer of TXU under a lower negotiated contract rate, regardless of the tariffs <br />approved in this case. <br /> <br />Cities' consultants approved the proposed service charges, and these charges will result <br />in $16,040 in additional system revenues. <br /> <br />One final important note is that TXU's filing included all costs of natural gas in base <br />rates. Cities' consultants recommended approving for base rate inclusion only the portion of gas. <br />costs authorized by the Railroad Commission in TXU's last city gate rate proceeding. The <br />Settlement removes all gas costs from base rates. That should be of benefit to Cities in the future <br />in explaining to citizens that the Cities have no regulatory authority over the cost of the <br />commodity (the price of which has become extremely volatile during the last year), but rather <br />only over the costs of the delivery of the commodity from the city gate to the end user. <br />