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CITY OF DENISON 500 West Chestnut · P.O. Box 347 · Denison, Texas, 75021-0347 , ' (903) 465-2720 · FAX (~03) 464-4499 March 9, 2001 Mayor Micheal J. Pfiester City of Paris PO Box 9037 Paris Tx 75460-9037 RE: TXU Gas Distribution Request to change rates Dear Mayor Pfiester: Recently your city received a request from TXU Gas Distribution to change gas rates within your city. The request was filed in 121 cities that the Company now characterizes as its East Region Distribution System and the request impact5 the cities in different ways. This is the third filing within the Company's service area aimed at establishing regional distribution systems. The second page of the Company's filing lists the cities involved in the east region and is enclosed with this letter. Because each of the cities has original jurisdiction to hear and determine the request made by TXU Gas, and because of the commonality of information, rate related data and issues germane to the case, it makes sense for the cities in the east region to meet and confer on the issues presented and to determine if a common and unified approach to dealing with the Company's rate request benefits our citizens. TXY has requested a rate that is common to all of the cities based upon an average of cost of service throughout the region. Ail cities will benefit from a common analysis that results in reduction to the Company's revenue requirements. To that end, I would like to invite you to a meeting of cities included in the Company's east distribution system. The meeting is scheduled for Wednesday, March 21, 2001, in Greenville, Texas. The meeting will be at 1:30 p.m. at the Wesley United Methodist Church located at 5302 Hwy 69 South. The City of Denison has retained Mr. Geoffrey Ga:,' to assist it in this matter and I know many of you have retained him previously on utility related matters. I have asked Mr. Gay to assist us in assessing the aspects of the rate request that warrant examination and to idcntiF/ expected costs a~ociated with such an effort. Mr. Gay will be attendi'ng the meeting at the City. of Denison's request and 6xpense. Although you may be a member of the Steering Committee of TXU Gas (Lone Star Gas) Cities, a state wide organization, the matter before us is confined to the 121 cities named in the Company's application. The 121 cities must organize ourselves in order to properly examine the company's application. By attending the meeting, you are not committing your city to any expense or particular course of action. I urge you to attend and/or send your representatives of your city so that the group may be as diversified and well represented as possible. Should you have any questions concerning this matter, please feel free to call me at 903.464.4442. I hope to see you in Greenville. Respectfully, . /~// Mayor ~ RECEIVED IAR 1 2 2001 CITY MANAGER PARIS. TEXAS