06-N TXU Gas Rate Intervention - Laserfiche WebLink

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AGENDA INFORMATION SHEET PROJECT: Consider a resolution authorizing intervention in Gas Utilities Docket 9292 before the Texas Railroad Commission to participate along with a steering committee of other cities in challenging a surcharge on residential and commercial gas customers in the city of Paris proposed by Lone Star Gas Pipeline to cover costs associated with the new pipeline to serve the Dallas metroplex. BACKGROUND: The City of Paris has received correspondence from the City of Arlington proposing participation by the various cities served by TXU Lone Star Pipeline (TXU LSP) in challenging a proposal by Lone Star to surcharge residential and commercial rate payers across the system to cover costs associated with a new pipeline to serve the metroplex. Historically, the City of Paris has in the past on a number of occasions participated with other cities in a standing steering committee which has reviewed and challenged these kinds of filings. In most of these circumstances, the proposed tariff has either been reduced or withdrawn. DESCRIPTION: The recommendation ofthe steering committee is thatthe member cities adopt a resolution authorizing intervention in the rate proceeding. The draftresolution presented for City Council's consideration would authorize the necessary intervention. All costs of such intervention by State law are passed on to the company. RECOMMENDED ACTION: Consider approval of the resolution authorizing participation with the other cities in intervening in the rate case. STAFF CONTACT: Larry W. Schenk, City Attorney COST: By State statute, cost of such interventions incurred by the cities are passed on to the utility. SCHEDULE: If the City of Paris desires to participate, it must adopt a resolution of intervention, forward that resolution on to the steering committee, and have that resolution filed before the Texas Railroad Commission priar to May 31, 2002. COUNCIL DATE: Consider for approval at City Council's regular meeting of May 13, 2002. ADDITIONAL MATERIALS: See enclosed resolution and correspondence from the City of Arlington.