05-B-Suspend TXU Gas RatesAGENDA INFORMATION SHEET
SUBJECT: Consider adoption of an ordinance suspending for ninety (90) days the proposed
effective date of proposed rate schedules resulting in a rate increase filed by TXU Gas Distribution.
BACKGROUND: On March 2, 2001, TXU Gas Distribution filed with the City of Paris a statement
of intent, accompanied by a rate filing package, proposing to change its rate schedules within the
corporate limits of the city of Paris, effective April 6, 2001. The Company has provided multiple
copies of the executive summary of the rate increase and has filed a complete rate package with the
City Clerk. City Council has been provided individual copies of the executive summary.
A careful review of the executive summary indicates TXU has designated something called the "East
Region Distribution System" for purposes of this particular proposed rate increase. Based on
discussions with other cities, this East Region Distribution System exists only with regard to its
designation by the Company. As a consequence, the participant cities in this particular rate case are
all of a population slightly larger than the city of Paris to considerably smaller than the city of Paris.
None of the major metropolitan areas (i.e. Dallas, Ft. Worth, etc.) are included in this so-called East
Region.
The nature of the proposed increase is based on the cost of the infrastructure to provide gas
distribution within the individual city limits of each city. As a consequence, the amount of revenue
to be generated by the rate adjustment, and the percent of the rate adjustment (whether increased or
decreased) varies from city to city. You will note, while the 10.56% increase for customers in the
city of Paris is substantial, the actual dollar increase at $542,068.76 distributed over all the customers
in the city of Paris is second only to the actual dollar increase for the city of Sherman, in the amount
of $1,658,569.55. In addition, the percent increase varies from 31.86% for the city of South Mayd
to a percent decrease of 17.06% for the city of Emhouse. The summary report also indicates the
average increase in the so-called "East Region" is 8.81%, or approximately 2% less than the increase
proposed for the City of Paris.
The process imposed upon the cities by state law to review these proposed rate increases is set out
in the Gas Utility Regulatory Act (GURA). Among the actions available to the cities include: 1) a
review of the proposed rate and approval of same; 2) suspension of the rate for ninety (90) days
during which the rate could be reviewed by special consultants; 3) rejection of the proposed rate
increase, which would presumably prompt a direct appeal to the railroad commission and a
subsequent rate hearing. The Company has also proposed a "most favored nation status" for those
cities which go forward and approve the proposed rate. A "most favored nation status" means if a
city accepts the proposed rate changes as filed, and forgoes any further appeals, the Company agrees
that if any other city in the distribution system thereafter negotiates a more favorable rate settlement,
the Company will subsequently offer the same settlement terms to the first city. However, "most
favored nation" letters do not have legal efficacy, are not necessarily binding on the Company, and
are subject to considerable interpretation as to how a rate settlement in one city, with a completely
different rate base, could somehow be construed to trigger a similar rate settlement in another city.
In addition, ifa rate case is appealed by other cities to the Railroad Commission, cities signing such
letter will not benefit from any favorable adjustments imposed by the Railroad Commission.
Subsequent to the filing of this rate proposal, the City Attorney's Office began to contact other cities
included in the supposed distribution system. The purpose was to attempt to coordinate in a unified
fashion a position with regard to the proposed rate adjustments. Thereafter, a letter was received by
the City of Paris over the signature of the Mayor of the City of Denison (copy enclosed) suggesting
the cities meet and confer on the issues presented to determine a common and unified approach to
dealing with the Company's rate requests. The City of Paris has responded favorably to this proposal
(copy of response letter enclosed). The meeting is currently scheduled for Wednesday, March 21,
2001, in Greenville, Texas. Representatives of the City will attend.
Based on the options available to the City of Paris, it would appear most prudent to adopt an
ordinance suspending for ninety (90) days the effective date of the proposed rate adjustments to
enable the City of Paris to participate with other cities in evaluating the rate proposals and
approaching those proposals in unison.
DESCRIPTION: The ordinance included in the agenda package contains the necessary elements to
successfully suspend the rate proposal presented by TXU Gas. The ordinance itself was proposed
by the Company, and should therefore be acceptable to the Company, with certain adjustments made
by the City Attorney's Office. Approval of the ordinance will suspend the proposed rate increase for
ninety (90) days, during which time the City could participate with other cities in evaluating the merits
of the rate proposals.
RECOMMENDED ACTION: Consider approval of the ordinance suspending the proposed rate
increases presented by TXU Gas for a period of ninety (90) days, and authorize City staff to
participate in the necessary proceedings, including hiring of special consultants jointly with other
cities, to properly evaluate the rate proposals presented.
STAFF CONTACT: Larry W. Schenk, City Attorney; and Michael E. Malone, City Manager
COST: Implementation of the proposed rate increases, without further study or suspension, would
result in an annual increase to customers within the city of Paris of an average of 10.56% for the
distribution component of the rate, or a total of a $542,068.76 impact on rate payers.
SCHEDULE: Approval of the ordinance will suspend the effective date of the rate increase,
currently scheduled for April 6, 2001, for a period of ninety (90) days, or until July 5, 2001.
COUNCIL DATE: Consider for approval at City Council's Monday, March 26, 2001, special
Council meeting.
ADDITIONAL MATERIALS: See proposed ordinance suspending the rates; proposed draft of
Most Favored Nation Status letter; and correspondence related to the rate proposals.
DRAFT
ALICE\ORDWORK\CURRENT\TXU Gas Rate Schedules
March 23, 2001
ORDINANCE NO.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PARIS,
PARIS, TEXAS, SUSPENDING FOR NINETY (90) DAYS THE PROPOSED
EFFECTIVE DATE OF PROPOSED RATE SCHEDULES FILED BY TXU
GAS DISTRIBUTION (f.k.a. TXU LONE STAR GAS); PROVIDING THAT
THE RATE SCHEDULES OF SAID COMPANY SHALL REMAIN
UNCHANGED DURING THE PERIOD OF SUSPENSION; PROVIDING FOR
NOTICE HEREOF TO SAID COMPANY; FINDING AND DETERMINING
THAT THE MEETING AT WHICH THIS ORDINANCE IS PASSED IS
OPEN TO THE PUBLIC AS REQUIRED BY LAW; MAKING OTHER
FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND
PROVIDING AN EFFECTIVE DATE.
WHEREAS, TXU Gas Distribution heretofore, on March 2, 2001, filed with the City of
Paris, Paris, Texas, its Statement of Intent, together with its rate filing package, proposing to change
its rate schedules within the corporate limits of the city of Paris, effective on April 6, 2001 (the
"proposed effective date"); and,
WHEREAS, in order to allow sufficient time for the consideration of the data filed by said
Company, it is the desire of the City of Paris to suspend, pursuant to Section 104.107(a)(1) of the
Gas Utility Regulatory Act, the proposed effective date of said proposed changed rate schedules;
NOW, THEREFORE,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF PARIS, PARIS,
TEXAS:
Section 1. That the findings set out in the preamble to this ordinance are hereby in all things
approved.
Section 2. That the effective date of the proposed changed rate schedules filed by TXU Gas
Distribution is hereby suspended for a period of ninety (90) days from the proposed effective date.
Section 3. That the rate schedules of TXU Gas Distribution in effect within the City of Paris
on the date on which TXU Gas Distribution filed its said Statement of Intent shall continue in force
during the period of suspension provided in Section 2 hereof.
Section 4. That the City shall participate with other cities named in this rate filing in a
consolidated review and negotiation regarding the proposed rate and in any other similar proceedings
or activities.
Section 5. That the City Clerk is hereby directed to deliver a copy of this ordinance to TXU
Gas Distribution promptly after the passage hereof.
Section 6. That it is hereby officially found and determined that the meeting at which this
ordinance is passed is open to the public and that public notice of the time, place, and purpose of said
meeting was given, all as required by law.
Section 7. That this ordinance shall be effective from and after its date of passage.
PASSED AND APPROVED at a special meeting of the City Council of the City of Paris,
Paris, Texas, on this the 26th day of March, 2001.
ATTEST:
Michael J. Pfiester, Mayor
Mattie Cunningham, City Clerk
APPROVED AS TO FORM:
Larry W. Schenk, City Attorney
Draft
[Date]
[Mayor or City Manager]
Dear :
As you are aware, TXU Gas Distribution recently filed a Statement of Intent to change the rates
for local gas distribution service in the Distribution System, which includes your
city. This letter confirms that if your city agrees (1) to accept TXU Gas Distribution's proposed
rate changes, as filed, and pass an ordinance approving the proposed rates, and (2) to forego any
right to participate in an appeal to the Railroad Commission of Texas should the Company file
one, the Company will agree as follows:
If any other city in the Distribution System negotiates a settlement
with TXU Gas Distribution that results in rates that are less than the proposed
rates as filed by the Company with that city, the Company will offer those same
settlement terms (reflected as a percentage reduction of the rates as proposed) to
your city, such that no other city in the Distribution System will
receive more favorable rate treatment than that offered to your city. For example,
if City A negotiates a settlement that results in its rates being 10% less than those
proposed by the Company, your city will be offered a 10% reduction in the rates
as proposed by the Company and approved in your ordinance;
2. The new rates will not be implemented until after July 5, 2001;
Customers in your city will not be surcharged for any rate case expenses
associated with this Statement of Intent or any appeal to the Railroad Commission
of Texas, should one be filed.
Passage of an ordinance approving the new rates as filed will constitute your city's acceptance of
this offer. Of course, if your city accepts this offer, and the Company does not reach a mutually
agreeable settlement with any other city in the Distribution System that results in
rates that are less than the proposed rates as filed, rates in your city will be set as proposed in the
Statement of Intent and passed in the ordinance, and will not be adjusted to comport with the
results of any appeal.
We appreciate your consideration of the Company's proposal. Please feel free to call me if you
have any questions.
Sincerely,
/gd
Steve Houle
Vice President
TXU Electric & Gas
02/27/01 14:49 F~ $12 472 0532 LLOYD GOSSELLI~ ET AL__ ~002/002
LLOYD, (~osSELINK, BLEVIN$, ROCHELLE,
BALDWIN & TOWNSEND, P. C.
MEMORANDUM
TO:
Select Client Cities Served by TXU Gas Distribution: Celeste, Clarksville,
Corsicana, Denison, Fate, Gainesviile, Honey Grove, Paris, Poh~t, poyner,
Sulphur Springs, Wazahachie
FROM: Geoffrey M. Gay
DATE:
RE:
February 27, 2001
East Texas TXU Gas Distribution Rate Case
Your city was a part of thc coalition of cities that I represented in thc last city gate rate
proceeding at the Ra/lroad Commission initiated by TXU Gas (aka Lone Star). This is notice
that TXLI Gas Distribution is planning to file a distribution rate case on Friday, March 2, 2001
that will consolidate your city into a 120 city East Texas Distribution System.
[ have been promised a copy of thc filing when it is made on Friday, and I will prepare a
preliminary assessment that I will share with current aad former client cities.
166 ~O0~.mmoO 10227 gms
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
March 12, 2001
The City of Den/son
Attn: Mr. Bill Lindsay, Mayor
500 West Chestnut
P. O. Box 347
Den/son, Texas 75021-0347
Dear Mayor Lindsay:
Thank you for your recent correspondence dated March 2, 2001, addressed to Mayor
Michael Pfiester, regarding a meeting of cities to act in a coordinated fashion in response to
localized rate increases recently filed by TXU Gas distribution.
Certain members of our city staff have recently been working on coordinating with other
cities on this issue as you suggest in your letter. I want to thank you for your initiative in taking
a leadership role in this matter, and on behalf of the Mayor of the City of Paris, who is at this
time out of town due to a recent death in his family, I want to express the support of the City of
Pads for your efforts. The City of Paris will be represented at the meeting on Wednesday, March
21, 2001 ih Greenville, Texas.
If you have any additional questions in the interim regarding this matter, please do not
hesitate to contact me or City Attorney Larry W. Schenk at the numbers referenced below.
Yours very truly,
Michael E. Malone,
City Manager
/ap
CCi
Mayor and City Council Members
City Attorney
P.O. BOX 9037 * PARIS, TEXAS 75461-9037 "(9031 785-7511 "FAX (903) 785-8519
O TXU
TXU Electric & Gas
TXU GAS DISTRIBUTION
EAST REGION DISTRIBUTION
SYSTEM
EXECUTIVE SUMMARY
Rate Case Filed March 2, 2001
EAST REGION DISTRIBUTION SYSTEM
TOWNS INCLUDED
TXU
TXU Electric & Gas
Alba Commerce
Alma Como
Angus Cooper
Anna Corsicana
Annona Crandall
Athens Cumby
Avery Dawson
Bardwell Denison
Barry Deport
Bells Detroit
Blooming Grove Dodd City
Blossom Ector
Blue Ridge Edom
Bogota Emhouse
Bonham Emory
B rownsboro Ennis
Caddo Mills Eustace
Campbell Farmers~ille
Canton Fate
Celeste Ferris
Celina Fomey
Chandler Frankston
Chapel Hill Frost
Clarksville Gainesville
Collinsville Garrett
Goodlow
Greenville
Gunter
Heath
Honey Grove
Howe
Italy
Josephine
Kaufman
Kemp
Kerens
Knollwood
Ladonia
Leonard
Lindsay
Lone Oak
Mabank
Malakoff
Maypearl
Melissa
Midlothian
Mildred
Milford
Mobile City
Muenster
Murchison
Neveda
Palestine
Palmer
Paris
Pecan Gap
Pecan Hill
Point
Pottsboro
Powell
Poynor
Princeton
Quinlan
Quitman
Ravenna
Red Oak
Reno (Lamar Co,)
Retreat
Rice
Richland
Roxton
Royse City
Sadler
Savoy
Sherman
Southmayd
Star Harbor
Sulphur Springs
Sun Valley
Terrell
~oga
Toco
Tom Bean
Trenton
Trinidad
Tyler
Valley View (Cooke Co)
Van Alstyne
Waxahachie
Westminister
Whitehouse
Whitesboro
Whitewright
W indom
Wolfe City
Yantis
2
EAST REGION DISTRIBUTION SYSTEM
Rate Filing Overview
TXU
TXIJ Electric & Gas
Proposed East Region Distribution System increase is $6.89 million or
8.81%
Changes in customer bills will vary; the average residential increase is
about $1.70 per month
East Region Distribution System net plant investment has increased $17.5
million or 35%
East Region Distribution System's controllable expenses decreased 8%.
Overall operating expenses increased 5% due to investment related costs
such as depreciation and property taxes.
East Region Distribution System's return on investment is currently
3.84%, proposed return on investment is 9.69%
Proposed effective date of rate change is April 6, 2001
Last rate change occurred between September 1982 and November 2000
Proposed adjustments for weather (WNA)
3
EAST REGION DISTRIBUTION SYSTEM
Proposed Rate Increase
TXU
TXU Electric & Gas
SYSTEM BY RATE CLASS
Residental
Commemial
Industrial
Service Charges
Total
INCREAS E/(DE CREAS E)
$
$2,847,681
$1,955,575
$2,067,336
$16,090
$6,886,682
%
5.78%
8.42%
42.95%
1.88%
8.81%
4
EAST REGION DISTRIBUTION SYSTEM
Proposed Revenue Increase (Decrease) by Classes
TXU
TXU Electric & Gas
Line City Name Residential
Commemial/Schools Indusldal/Transportatier~ Serv Chrg
Increase / (Decrease)
Amount Pement
1 ALBA $2,017.01 $3,586.94 $9,508.56 $25.75
2 ALMA $354.93 $12.88 $0.00 $0.00
3 ANGUS $1,299.61 $151.72 $0.00 ($6.75)
4 ANNA $25,606.01 $1,978.86 $0.00 $98.25
5 ANNONA $5,472.30 $1,326.72 $0.00 $220.50
6 ATHENS $165,053.43 $153,553.27 $8,323.47 ($2,286.75)
7 AVE RY $2,113.18 $1,231.46 $0.00 $566.00
8 BARDWELL $1,360,27 $29.61 $0.00 $0.00
9 BARRY ($1,416.08) $37.62 $0.00 $13.75
10 BELLS $8,813.88 $5,660.53 $0.00 $37.25
11 BLOOMING GROVE $1,719.82 $9,620.90 $0.00 $51.75
12 BLOSSOM $8,796.00 $851.16 $0.00 $558.00
13 BLUE RIDGE $207.35 $2,642.55 $0.00 $114.25
14 BOGATA ($21,328.81) $2,236.08 $0.00 ($624.00)
15 BONHAM ($3,458.41) $40,382.68 $25,102.17 $403.75
16 BROWNSBORO $3,115.71 $5,346.09 $0.00 $15.75
17 CADDOMILLS $6,695.87 ($493.53) $0.00 ($184.25)
18 CAMPBELL $4,067.24 $2,788.46 $0.00 $16.75
19 CANTON ($17,428.74) $24,978.44 $0.00 $352.00
2o CELESTE ($4,235.95) $2,403.44 $0.00 $90.25
21 CELINA ($16,245.31) $2,573.15 $24,225.99 ($250.50)
22 CHANDLER $17,375.70 $6,878.78 $0.00 $995.75
23 CHAPELHILL $3,698.76 $5,718.95 $0.00 ($124.75)
24 CLARKSVILLE ($2,598.21) $23,712.10 $2,798.39 $107.00
25 COLLINSVILLE ($2,993.36) $178.21 $0.00 ($242.00)
26 COMMERCE $84,060.76 $200,172.97 $39,885.81 $5,099.50
27 COMO ($8,221.12) $1,471.37 $11,195.43 $29.75
$15,138.25 14.03%
$367.81 2.79%
$1,444.59 17.82%
$27,683.12 13.47%
$7,019.52 13.16%
$324,643.42 15.29%
$3,910.63 4.11%
$1,389.88 2.71%
($1,364.71) -4.52%
$14,511.66 6.71%
$11,392.47 6.96%
$10,205.16 7.16%
$2,964.15 2.89%
($19,716.73) -6.87%
$62,430.18 3.74%
$8,477.55 7.74%
$6,018.10 2.65%
$6,872.45 9.21%
$7,903.70 1.29%
($1,742.26) -1.05%
$10,303.33 2.10%
$25,250.23 10.28%
$9,292.96 5.62%
$24,019.27 2.70%
($3,057.15) -1.60%
$329,219.04 26.42%
$4,475.43 3.51%
5
EAST REGION DISTRIBUTION SYSTEM
Proposed Revenue Increase (Decrease) by Classes
TXU
TXU Electric & Gas
Une City Name Residential
Commemial/Schools Indust rial/Transportation Serv Chrg
Increase / (Decrease)
Amount Percent
28 COOPER ($16,091.55) $2,819.00 $4,303.58 $260.25
29 CORSICANA $190,461.01 ($17,338.79) $51,414.60 $0.00
3o CRANDALL $50,720.15 $8,081.04 $3,476.91 $104.00
31 CUMBY ($126.15) ($1,900.77) $0.00 ($4.50)
32 DAWSON ($4,349.39) $3,792.65 $0.00 $122.75
33 DENISON $171,115.95 $78,286.11 $97,756.33 ($9,190.75)
34 DEPORT ($2,523.59) $5,648.48 $0.00 ($176.00)
35 DETROIT $6,054.07 $858.70 $0.00 $568.25
36 DODD crI'Y $456.95 $506.90 $0.00 $34.25
37 ECTOR $1,881.73 ($1,138.56) $0.00 $0.00
38 EDOM $859.87 $864.24 $0.00 ($13.00)
39 EMHOUSE ($5,535.66) ($378.45) $0.00 $6.25
40 EMORY $3,481.33 $7,035.35 $0.00 $641.75
41 ENNIS $54,898.69 $45,273.41 $193,783.55 $0.00
42 EUSTACE ($2,031.32) $2,824.36 $0.00 $111.25
43 FARMERSVILLE $24,593.26 $17,164.60 $0.00 $1,251.00
44 FATE ($3,483.11 ) ($502.23) $0.00 $125.00
45 FERRIS $7,640.36 $7,428.35 $0.00 $0.00
46 FORNEY $20,911.52 $16,357.55 $0.00 $2,256.25
47 FRANKSTON $17,805.99 $10,287.00 $0.0~) $386.00
48 FROST ($447.30) $3,553.49 $0.00 ($24.75)
49 GAINESVILLE $240,520.58 ($4,794.68) $49,941.38 $10,746.25
50 GARRE'I-r $2,012.13 $1.87 $0.00 $0.00
51 GOODLOW $457.51 $257.48 $0.00 ($32.25)
52 GREENVILLE $216,840.11 $70,774.07 $116,848.92 $14,056.25
53 GUNTER $347.07 $7,566.59 $0.00 $27.75
54 HEATH $95,842.51 $4,668.86 $0.00 $444.25
($8,708.72) -1.94%
$224,536.82 4.68%
$62,382.10 17.36%
($2,031.42) -1.46%
($433.99) -0.25%
$337,967.64 6.50%
$2,948.90 1.89%
$7,481.02 5.82%
$998.10 1.66%
$743.17 0.69%
$1,711.12 4.86%
($5,907.86) -17.06%
$11,158.43 5.42%
$293,955.64 9.74%
$904.30 0.88%
$43,008.87 5.81%
($3,860.34) -6.81%
$15,068.71 3.95%
$39,525.32 5.19%
$28,478.99 15.38%
$3,081.44 2.81%
$296,413.52 8.95%
$2,014.00 3.05%
$682.75 2.31%
$418,519.35 7.13%
$7,941.41 4.89%
$100,955.62 13.39%
6
EAST REGION DISTRIBUTION SYSTEM
Proposed Revenue Increase (Decrease) by Classes
Txu
TXU Electric & Gas
Line City Name Residential
Commercial/Schools Industrial/Transportation Serv Chrg
Increase / (Decrease)
Amount Percent
55 HONEYGROVE $7,591.00 $12,453.32 $0.00 $48.00
56 HOWE $59,915.92 $21,730.65 $8,449.41 $874.50
57 ITALY $6,609.92 $934.12 $0.00 $0.00
58 JOSEPHINE $5,844.35 $391.48 $0.00 $13.75
59 KAUFMAN $28,097.62 $17,450.42 $13,061.47 $2,595.00
60 KEMP $2,036.46 $320.23 $0.00 ($388.75)
61 KERENS $5,184.62 $3,150.72 $0.00 $41.00
62 KNOLLWOOD $1,284.72 $95.29 $0.00 ($25.25)
63 LADONIA ($4,076.67) ($12,045.10) $0.00 $6.75
64 LEONARD ($6,010.59) $3,972.13 $0.00 ($703.25)
65 LINDSAY $980.43 $4,793.32 $0.00 ($8.00)
66 LONE OAK $1,149.87 $5,346.40 $0.00 $34.75
67 MABANK $1,528.30 $13,436.18 $0.00 $72.25
68 MALAKOFF $23,504.77 $14,126.52 $0.00 $115.25
69 MAYPEARL $2,446.88 $1,143.83 $0.00 $0.00
70 MELISSA ($5,723.66) ($1,097.12) $0.00 ($88.75)
71 MIDLOTHIAN $16,038.75 $13,229.47 $18,174.25 $0.00
72 MILDRED $0.00 $0.00 $0.00 $0.00
73 MILFORD $2,746.21 $206.93 $0.00 $0.00
74 MOBILE CITY $2,089.67 $249.43 $0.00 $63.50
75 MUENSTER $13,674.96 $10,377.16 $4,139.61 $548.25
76 MURCHISON $1,551.97 $1,793.93 $0.00 $60.00
77 NEVADA $3,023.30 $9,799.16 $0.00 $37.75
78 PALESTINE $151,662.31 $117,629.61 $10,881.36 $0.00
79 PALMER $4,539.58 $480.54 $0.00 $0.00
80 PARIS $261,294.65 $191,508.12 $97,129.75 ($7,863.75)
81 PECAN GAP ($7,609.15) ($366.10) $0.00 $5.50
$20,092.32 4.35%
$90,970.49 22.22%
$7,544.05 2.88%
$6,249.57 8.84%
$61,204.52 6.07%
$1,967.93 0.92%
$8,376.34 2.96%
$1,354.76 8.36%
($16,115.O2) -5.91%
($2,741.72) -0.79%
$5,765.75 4.89%
$6,531 .O1 5.20%
$15,036.73 5.66%
$37,746.53 12.03%
$3,590.71 3.24%
($6,909.53) -6.26%
$47,442.46 5.86%
$o.oo $0.oo
$2,953.13 2.79%
$2,402.59 13.63%
$28,739.97 8.40%
$3,405.90 4.93%
$12,860.22 13.61%
$280,173.27 9.44%
$5,020.12 2.77%
$542,068.76 10.56%
($7,969.76) -13.10%
7
EAST REGION DISTRIBUTION SYSTEM
Proposed Revenue Increase (Decrease) by Classes
TXU
TXU Electric & Gas
Line City Name Residential
Commercial/Schools Indust fiaFTrans port ation Serv Chrg
Increase / (Decrease)
Amount Percent
82 PECAN HILL $810.26 $0.00 $0.00 $0.00
83 POINT $8,857.70 $1,928.67 $3,140.56 $290.50
84 PO'FI'SBORO $1,493.98 ($1,341.15) $0.00 $800.25
85 POWELL ($229.97) $234.13 $0.00 $18.25
86 POYNOR $542.29 $922.98 $0.00 $18.50
87 PRINCETON $11,948.60 $11,910.89 $0.00 ($227.25)
88 QUINLAN $15,334.68 $25,425.31 $0.00 $568.75
89 QurI'MAN $41,024.89 $43,573.35 $0.00 $162.00
90 RAVENNA $1,669.27 $570.60 $0.00 $81.00
91 RED OAK $8,865.09 $7,397.51 $0.00 $0.00
92 RENO (LAMAR CO.) $15,885.75 $2,889.67 $0.00 $111.50
93 RETREAT $2,365.15 $1,584.36 $0.00 $39.75
94 RICE $2,753.91 $1,391.65 $0.00 $29.00
95 RICHLAND $492.93 $296.02 $0.00 ($7.75)
96 ROXTON $1,769.20 $1,260.88 $0.00 $100.00
97 ROYSE CFI'Y ($25,760.69) $8,904.51 $0.00 ($203.00)
98 SADLER $2,170.05 $3,503.07 $0.00 $29.75
99 SAVOY $7,469.44 $3,192.87 $0.00 $379.75
10o SHERMAN $430,521.22 $359,375.41 $876,265.92 ($7,593.00)
101 SOUTHMAYD $9,744.15 $7,905.05 $0.00 $103.00
102 STAR HARBOR $4,527.20 $129.13 $0.00 $102.25
103 SULPHUR SPRINGS $125,605.76 $102,114.79 $91,908.42 ($3,472.75)
104 SUN VALLEY $946.73 $259.42 $0.00 ($3.00)
105 TERRELL $85,408.37 $42,763.99 $92,814.29 $450.75
lO6 TIOGA $2,231.55 $1,975.10 $0.00 $71.75
107 TOCO $1,481.58 $148.72 $0.00 ($24.25)
108 TOM BEAN $10,041.32 $7,580.36 $0.00 $35.75
$810.26 3.20%
$14,217.43 19.10%
$953.08 0.36%
$22.41 0.08%
$1,483.77 4.13%
$23,632.24 6.44%
$41,328.73 14.16%
$84,760.24 20.90%
$2,320.87 7.19%
$16,262.59 3.71%
$18,886.92 12.22%
$3,989.26 14.72%
$4,174.56 6.05%
$781.21 2.08%
$3,130.08 2.01%
($17,059.18) -3.59%
$5,702.87 7.47%
$11,042.06 7.56%
$1,658,569.55 16.91%
$17,752.21 31.86%
$4,758.59 6.76%
$316,156.22 11.40%
$1,203.15 14.95%
$221,437.40 7.48%
$4,278.39 3.16%
$1,606.05 7.97%
$17,657.43 12.16%
8
EAST REGION DISTRIBUTION SYSTEM
Proposed Revenue Increase (Decrease) by Classes
O TXU
TXU Electric&Gas
Line City Name
Residential Commercial/Schools Industrial/Transportation Serv Chrg
Increase / (Decrease)
Amount Percent
to9 TRENTON $10,188.99 $6,263.51 $0.00 $390.50 $16,842.99 11.24%
11o TRINIDAD $6,336.49 $3,981.73 $0.00 $136.25 $10,454.47 8.64%
111 TYLER ($42.12) $141.23 $0.00 $19.25 $118.36 0.41%
112 VALLEYVlEW (COOKE CO.) $6,334.08 ($272.82) $7,805.49 $53.50 $13,920.25 9.45%
113 VAN ALSTYNE ($4,582.68) $3,464.78 $0.00 $183.00 ($934.90) -0.17%
114 WAXAHACHIE $86,797.15 $80,617.45 $205,148.23 $0.00 $372,562.83 8.20%
115 WESTMINSTER ($577.70) ($25.34) $0.00 $11.75 ($591.29) -1.16%
116 WHiTEHOUSE ($14,885.58) $4,028.68 $0.00 ($378.25) ($11,235.15) -2.3t %
117 WHITESBORO $11,421.17 $3,470.33 $0.00 $287.75 $15,179.25 1.96%
t18 WHITEWRIGHT $35,595.95 $14,512.86 $0.00 $1,249.75 $51,358.57 t3.99%
t19 WlNDOM ($2,637.09) $269.85 $0.00 $20.25 ($2,346.99) -4.14%
12o WOLFE CITY $27,801.17 $3,944.51 $0.00 $2.75 $31,748.43 9.75%
121 YANTIS $2,263.69 $917.99 $0.00 $29.00 $3,210.67 6.59%
122 Other $0.00 $184.20 $0.00 $7.50 $191.70 5.29%
122 SUB-TOTAL REVENUE $2,847,681 $1,955,575 $2,067,336 $16,090 $6,886,682 8.81%
9
EAST REGION DISTRIBUTION SYSTEM
Residential & Commercial Bill Comparison
O TXU
TXU Electric & Gas
COMPARISON OF RATE STRUCTURE,
Residential:
Customer Charge per month
All Volume - Margin per Mcf
Commercial:
Customer Charge per month
All Volume - Margin per Mcf
Consumption Charge per MCF:
First 20 Mcf-Margin per Mcf
Next 30 Mcr-Margin per Mcf
Over 50 Mcf-Margin per Mcf
Gas Cost per Mcf- Adjusted
PRESENT
Note
Range
Average
WINTER SUMMER
($.11)-$10.21 ($.11)-$10.21
$1.6443 $1.5427
Range
Average
$3.89-$16.45 $2.36-$16.45
$1.9133 $1.5763
PROPOSED
$8.0000
$1.3261
$14.0000
Average $1.3046 $1.3046 $1.5693
Average $1.0329 $1.0329 $1.2693
Average $0.8958 $0.8958 $1.1193
$5.0514 $5.0514 $5.0514
COMPARISON OF A TYPICAL BILL
Res. at 5 MCF
Com. at 30 MCF
PRESENT
W INTER
PRESENT
SUMMER
PROPOSED
$40.72 $39.61 41.84
$209.43 $205.04 219.87
CHANGE
WINTER SUMMER
1.12 2.23
10.44 14.83
10
EAST REGION DISTRIBUTION SYSTEM
Rate Filing Comparative Data
CUSTOMERS
PRIOR CASE
12 months ended
Dec. 31,1996
PROPOSED
(9-00 TEST YEAR)*
TXU
TXU Electric & Gas
CHANGE *
Residential
Commercial
Industrial/Transport
Total
98,840
12,686
331
111,857
97,847
12,258
316
110,421
(993) -1%
(428) -3%
(15) .5%
(1,436) -1%
SALES VOLUME IN MCF in (000)
Residential 6,771 6,312 (459) -7%
Commercial 3,532 3,453 (79) -2%
Industrial/Transport 6,770 6,502 (268) -4%
Total 17,073 16,267 (806) -5%
OPERATING EXPENSES
in ($000)
Labor $ 5,966 $ 5,464 $ (502) -8%
Other Expenses $ 6,810 $ 7,921 $ 1,111 16%
Total $ 12,776 $ 13,385 $ 609 5%
NET PLANT INVESTMENT
in ($000)
$ 50,022 $ 67,554 $ 17,532
35%
11
EAST REGION DISTRIBUTION SYSTEM
Rate Filing Investment Summary
TXU
TXU Electric & Gas
· From January 1997 through September 2000, TXU Gas
Distribution has invested $25.3 million of new capital in the East
Region Distribution System.
· Related Depreciation & Taxes Increase $1.6 million
· Net Investment has increased 35%
- Service Lines & Meters
- Economic Growth
- Safety/Replacements
- Relocations
-Total
$ 5.57 million
$ 5.08 million
$ 5.06 million
$1.81 million
$17.53 million
12
EAST REGION DISTRIBUTION SYSTEM
Rate Filing Return on Invested Capital
~ TXU
TXU Electric & Gas
10.00%
8.00%
6.00%
4.00%
2.00%
0.00%
Authorized in Currently Being Proposed
GUD9145 Earned
13