05-A TXU Gas Rate Inc. Request - Laserfiche WebLink

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There is another group of cities, referred to as Association of TXU Municipalities (ATM), represented by Jim Boyle and Monte Akers, involved in the RRC proceeding. ATM has 46 members, mostly small cities. The number of residents of ATM cities is about 9% of total customers and they consume about 6% of the gas sold on the system. During the period of time that cities were considering whether to deny or suspend TXU's application, my office negotiated concessions from TXU regarding development of a procedural schedule for RRC proceedings. As this statewide case is the flint of its kind with many controversial and difficult issues, it is unlikely that Cities' case could be thoroughly developed within the traditional 185 day time frame. We successfully negotiated an agreement from the Company to extend the Commission jurisdiction from 185 days to 300 days; in return, ACC agreed that the Cities would expedite the process of getting RRC jurisdiction over city action by expediting denials that could be appealed. Having worked out that agreement with TXU, it is now appropriate for the members of the coalition that I represent to pass ordinances denying the Company's application. I have revised the denial ordinance TXU previously asked you to pass. It is attached to this memo and should be placed before your council at the earliest convenient time. I had several Steering Committee members ask that I include findings of fact to justify denial. The Steering Committee then directed that such findings be included with this package. I have included a list of proposed f'mdings which are also reflected in the ordinance. I have carefully structured the findings to address generic issues so that we can avoid premature release of issues being pursued by your consultants. Your consultants were selected to tap the strengths of several different firms. A three- phased approach is being used to develop your positions. Phase 1 was used to evaluate issues and potential consultants. Phase 2 is the discovery and development phase that we are in currently. A six-hour meeting was held in my office on July 1st with the various consultants to share ideas and issues. Phase 2 will continue through the end of August. Phase 3 will focus on development of testimony and re-evaluation of preliminary decisions as to who should testify. Your consultants and witnesses consist of several members from R.J. Covington Consulting, Steve Hill (on rate of return), Steve Andersen (on class cost allocation and rate design), Connie Cannady and 4MP, consisting of former TXU employees. The first preheating conference at the RRC in GUD No. 9400 will occur on Monday, July 14, 2003. 1668\09~9400~mmoO30703gmg