My WebLink
|
Help
|
About
|
Sign Out
Home
Browse
Search
06-A TXU Gas Rate
City-of-Paris
>
City Council
>
Agenda Packets
>
2001-2010
>
2001
>
08 - August
>
August 13, 2001
>
06-A TXU Gas Rate
Metadata
Thumbnails
Annotations
Entry Properties
Last modified
11/8/2005 11:20:09 AM
Creation date
8/10/2001 12:57:09 PM
Metadata
Fields
Template:
AGENDA
Item Number
6-A
AGENDA - Type
ORDINANCE
Description
TXU Gas Distribution Rates
AGENDA - Date
8/13/2001
There are no annotations on this page.
Document management portal powered by Laserfiche WebLink 9 © 1998-2015
Laserfiche.
All rights reserved.
/
47
PDF
Print
Pages to print
Enter page numbers and/or page ranges separated by commas. For example, 1,3,5-12.
After downloading, print the document using a PDF reader (e.g. Adobe Reader).
View images
View plain text
AGENDA INFORMATION SHEET <br /> <br />PROJECT: Consider adoption of an ordinance implementing settlement of the TXU Gas Distribution <br />Rate Case. <br /> <br />BACKGROUND: The City of Paris has original jurisdiction over TXU Gas Distribution's rates and <br />services within the municipal limits. This does not include jurisdiction over the cost of natural gas. TXU <br />is entitled to recover its reasonable actual cost of natural gas plus a profit as determined exclusively by the <br />Railroad Commission. The City's jurisdiction over distribution costs commences when gas is delivered to <br />the city gate. The rates set by the City may be appealed to the Railroad Commission if the Company is <br />dissatisfied with the City's consideration of its requested increase in rates. <br /> <br /> On March 2, 2001, TXU Gas Distribution filed a request to increase rates effective April 6, 2001. <br />The City passed a resolution suspending the effective date for 90 days and authorized participation with <br />other Cities in a review of the reasonableness of the Company's request. The Coalition of Cities reviewing <br />TXU's request had assistance of legal counsel from Geoffrey Gay of Lloyd, Gosselink, Blevins, Rochelle, <br />Baldwin & Townsend in Austin, Texas and rate consultants Bill McMorries, Connie Cannady and Stephen <br />Hill. Following issuance of a consultants' report a series of settlement discussions were pursued with policy <br />and strategic determinations being made by City representatives. Protracted good faith settlement <br />discussions led the Company to extend its effective date and increase the City's jurisdiction by 30 days. A <br />settlement has been reached between the Cities and the Company, and TXU has agreed to further extend <br />its effective date to accommodate the schedules of the Cities in passing a rate ordinance that reflects the <br />settlement. The current generic extension authorized City action through August 31,2001. <br /> <br />DESCRIPTION: The Company originally requested an increase in annual revenues of $6,886,682 but <br />disguised the percentage increase suggested to be 8.81% by rolling all the cost of the commodity (natural <br />gas) into the base rates. The real proposed increase in the portion of costs regulated by the City was <br />substantially higher. Cities' consultants proposed an alternative revenue requirement deficiency of <br />$2,977,000. A compromise was ultimately reached on an increase of $3,977,141. <br /> <br /> A comparison of the amount of additional dollars to be recovered from each customer class under <br />the settlement with the amounts proposed by TXU is as follows: <br /> <br />Rate Class Original TXU Filing Settlement <br />Residential 2,847,681 1,391,427 <br />Commercial 1,955,575 502,288 <br />Industrial 2,067,336 2,067,336 <br />Service Charges 16,090 16,090 <br />TOTAL 6,886,682 3,977,141 <br /> <br /> <br />
The URL can be used to link to this page
Your browser does not support the video tag.