17-M - TXU Gas Cost Case - Laserfiche WebLink

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AGENDA INFORMATION SHEET PROJECT: Consider a resolution authorizing participation of the City of Paris with other cities, under the auspices of the TXU Gas City Steering Committee, in a major gas cost reconciliation case filed by TXU Gas before the Texas Railroad Commission. BACKGROUND: There is a standing TXU Gas City Steering Committee which is a consorti u m of cities (including in the past the City of Paris) monitoring gas-related matters involving the TXU Gas Company. The Steering Committee has become aware of the intentions of TXU Gas Distribution to file a major gas cost reconciliation case before the Texas Railroad Commission which would potentially involve $1.1 billion dollars in gas costs. It is anticipated this case will be filed at the end of June and will cover some thirty-six (36) months of previously collected gas costs. The City of Paris has been asked by the consortium of cities to continue in its participation with the other cities in fili ng an intervention before the Railroad Commission. The cities are the only entities with authority to participate in reviewing this proposed gas reconciliation. Depending on the outcome, it could mean millions of dollars in refunds for customers of TXU Gas Distribution, including those customers which reside in Paris. Participation expenses are reimbursable and funds are available from the Steering Committee reserve fund to pay the up-front expenses. However, for the City of Paris to participate, the City Council must adopt a resolution supporting such action. DESCRIPTION: Consider adoption of a resolution joining the City of Paris with a consortium of other cities from the TXU Gas Distribution system to intervene in GUD No. 9180, a gas reconciliation case filed by TXU Gas Distribution, to reconcile $1.1 billion in previously incurred and billed gas costs. COST: There will be no direct cost to the City of Paris. RECOMMENDED ACTION: Approval of the resolution authorizing the City’s intervention in the gas utility case. STAFF CONTACT: Larry W. Schenk, City Attorney SCHEDULE: The actual reconciliation case should be filed by or before the end of June 2001. COUNCIL DATE: Consider for approval at City Council’s Monday, June 11, 2001, regular Council meeting. ADDITIONAL MATERIALS: See attached draft resolution approving the Cities intervention a s well as supporting materials from the TXU Steering Committee asking for involvement of the cities.