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LLOYD, GOSSELINK, BLEVINS, ROCHELLE, <br /> BALDWIN & TOWNSEND, P.C. <br /> ATTORNEYS AT LAW <br /> <br /> 111 CONGRESS AVENUE TELEPHONE (512) 322-5800 <br /> SUITE1800 Mr. Gay's Direct Line: (512)322-5875 TELECOPIER (512)472-0532 <br /> AUSTIN, TEXAS 78701 Email: ggay~lglawfirrn.com www.lglawfirm.com <br /> <br /> MEMORANDUM <br /> <br />TO: Client Cities Served By TXU Gas <br />FROM: Geoffrey M. Gay <br />DATE: May 20, 2003 <br />RE: Procedure For Processing New Rate Case <br /> <br /> Approximately 50 city representatives met in Arlington on May 9, 2003 to discuss the <br />statewide rate case that TXU Gas plans to file on Friday, May 23. <br /> <br /> Pursuant to thc directives of that group, I have attached a model resolution for your city <br />to adopt. Thc resolution accomplishes the following objectives: <br /> <br /> 1. It suspends the effective date of proposed new rates for the maximum period <br /> allowed by law. However, it does not specifically identify the end of the <br /> suspension period because it is anticipated that TXU and Cities will reach an <br /> agreement on procedural issues that will cause TXU to move its effective date to <br /> increase the amount of time the Railroad Commission has to process the case. <br /> <br /> 2. It commits the city to cooperation with other similarly situated cities to a joint <br /> review of the Company filing, the sharing of consultants and to joint participation <br /> at the Railroad Commission. <br /> <br /> 3. It authorizes intervention at the Railroad Commission. Pipeline issues and rates <br /> have historically been under the exclusive jurisdiction of the Railroad <br /> Commission and TXU plans to file simultaneously with the Cities and the <br /> Commission because the Company plans to consolidate the Pipeline and <br /> Distribution systems under a single set of rates. Issues of concern to Cities will <br /> emerge at the Commission immediately upon filing and Cities cannot afford to <br /> postpone involvement at the Commission until TXU appeals local rate setting or <br /> denial of the requested increase. <br /> <br /> Upon adoption of the attached or similar resolution, please email or fax a copy to <br /> me (~a¥~lglawfirm.com or (512) 472-0532 fax) and to Jay Doegey, City <br /> Attorney o~ Arlington (doegeyj~ci.arlington.tx.us or 817-459-6897 fax). <br /> <br />1668\09~mmoO30520gmg <br /> <br /> <br />