2003-031-ORD DENYING TXU GAS COMPANY'S REQUEST TO CHANGE RATES INSIDE COP

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Section 1. That the findings set out in the preamble to this ordinance are hereby in all things approved. Section 2. That the Company's Statement of Intent to change gas rates within the City, as part of the Company's statewide gas utility system, is found to be unreasonable because: (a) TXU's requested return on equity is excessive, generating more than 86% of the requested increase in rates; (b) the basis for TXU' s proposed consolidations (of regional distribution systems and of pipeline costs with distribution costs) has not been established; (c) the City's jurisdiction to increase pipeline rates has not been established and, therefore, the proposed pipeline cost increases should be disallowed; (d) revenue requirements should be reduced rather than increased; and (e) the TXU filing should be denied pursuant to agreement with the Company; and is therefore denied in all respects. Section 3. That the costs incurred by the City in reviewing the Company's application be promptly reimbursed by the Company. Section 4. That this Ordinance shall become effective immediately from and after its passage, as the law and charter in such cases provide. Section 5. That it is hereby officially found and determined that the meeting at which this Ordinance is passed is open to the public as required by law and that public notice of the time, place, and purpose of said meeting was given as required. Section 6. That a copy of this ordinance, constituting final action on the Company's application, be forwarded to the appropriate designated representative of the Company within 10 days as follows: Autry L. Warren, Director Gas Regulatory, TXU Business Services, 1601 Bryan Street, Dallas, Texas 75201-3402. DULY PASSED AND APPROVED by the City Council of the City of Paris, Paris, Texas, on this the 14th day of July, 2003. ATTEST: ~~'-'~""t. \) Mattie Cunningham, City Clerk ~