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08 GUD 9304 InterventionDRAFT J:\Attorney\Lisa\Resolutions\CiJRRENT\Lone Star Intervention #2-D02.wpd August 5, 2002 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, PARIS, TEXAS, AMENDING RESOLUTION NO. 2002-086 TO INCLUDE AUTHORIZATION FOR INTERVENTION IN GAS UTILITIES DOCKET 9304 AT THE RAILROAD COMMISSION; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND DECLARING AN EFFECTIVE DATE. WHEREAS, TXU Lone Star Pipeline (LSP) filed a Statement of Intent with the Railroad Commission (designated as GUD 9292) on April 5, 2002, to surcharge residential and commercial gas customers who are residents of the city of Paris to cover costs associated with a new pipeline to serve the Metroplex; and, WHEREAS, the requested surcharges of 37¢ per month and $2.10 per month on residential and commercial customers, respectively, will adversely impact the City of Paris and its residents; and, WHEREAS, the City Council did heretofore, on the 13th day of May, 2002, in Resolution No. 2002-086, authorize intervention in GUD 9292 and participation in a Steering Committee of other affected cities; and, WHEREAS, TXU Lone Star Pipeline (LSP) filed a second statewide surcharge case on May 8, 2002 (designated as GUD 9304), requesting authority to establish a monthly fee to recover future, unpredictable expenses associated with implementation of a pipeline integrity and safety assessment (ISA) program; and, WHEREAS, the requested surcharge in GUD 9304 will have an immediate impact of $1.25 to $2.50 annually per residential customer, with the potential for much higher increases in the future becoming automatic once the surcharge mechanism is approved and becomes a precedent for automatic pass through of costs associated with a pipeline safety cost recovery program; and, WHEREAS, cities served by TXU have a history of cooperation in gas rate matters and such cooperation in GUD 9304 will be efficient and cost effective in evaluating whether associated costs should be recovered in piecemeal ratemaking through a surcharge; therefore, it is deemed appropriate that Resolution No. 2002-086 be amended to include authorization for intervention in GUD 9304; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PARIS, PARIS, TEXAS: Section 1. That the findings set out in the preamble to this resolution are hereby in all things approved. Section 2. That Resolution No. 2002-086 be, and the same is hereby, amended to include authorization for intervention in Gas Utilities Docket 9304 at the Railroad Commission. Section 3. That the City Clerk shall cause copies of this resolution to be sent to the TXU representative: Autry Warren, Rate Manager TXU Gas Distribution 1601 Bryan Street Dallas, TX 75201-3402 and to: Jay B. Doegey, City Attorney City of Arlington P. O. Box 231 Arlington, TX 76004-0231 for forwarding to the Steering Committee. Section 4. That this resolution shall be effective from and after its date of passage. PASSED AND APPROVED this 8th day of August, 2002. Michael J. Pfiester, Mayor ATTEST: Mattie Cunningham, City Clerk APPROVED AS TO FORM: Larry W. Schenk, City Attorney iv ~ ~ RESOLUTION NO. 2002-086 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, PARIS, TEXAS, AUTHORIZING INTERVENTION IN GAS UTILITIES DOCKET 9292 AT 'I'HE RAILROAD COMMISSION; AUTHORIZING PARTICIPATION IN A STEERING COMMITTEE WITH OTHER CITIES SERVED BY TXU AND REQUIRING REIMBURSEMENT FROM TXU LONE STAR PIPELINE OF CITIES' REASONABLE RATE CASE EXPENSES; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND DECLARING AN EFFECTIVE DATE. WHEREAS, TXU L,one Star Pipeline (LSP) filed a 5tatement of Intent with the Railroad Commission (designated as GUD 9292) on Apri15, 2002, to surchazge residential and commercial gas customers who aze residents of the City of Paris to cover costs associated with a new pipeline to serve the Metroplex; and, WHEREAS, the requested surcharges of 37C per month and $2.10 per month on residential and commercial customers, respectively, will adversely impact the City of Paris and its residents; and, WHEREAS, cities served by TXU have a history of cooperation in gas rate matters and such cooperation in GUD 9292 will be efficient and cost effective in evaluating whether the proposed pipeline is reasonable and necessary and whether associated costs should be recovered in piecemeal ratemaking through a surcharge; and, WHEREAS, pursuant to Utilities Code §103.023, municipalities have standing to intervene in this case; and, WHEREAS, pursuant to Utilities Code §103.022, municipalities are entitled to reimbursement of their reasonable costs of participation; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PARIS, PARIS, TEXAS: Section 1. That the findings set out in the preamble to this resolution are hereby in all ffiings approved. 5ection 2. That the Ciry Council of the Ciry of Paris, Paris, Texas, authorizes City Attorney Lazry W. Schenk to represent the City on the Steering Committee of affected cities (hereinafrer called "Steering Committee") and authorizes the Steering Committee of which the City is a participating member to retain legal counsel and engage consultants and to intervene on behalf of the City in related dockets and appeals. '1VV w Section 3. That the Steering Committee formed to oversee this effort on behalf of cities is authorized to take all reasonabie steps before the Aailroad Commission and before the Courts as may be necessary in an appeal of a Commission Order. Section 4. That Lone Star Pipeline (LSP) is hereby directed to promptly pay cities' rate case expenses as they are incurred. Section 5. That the City Clerk shall cause copies of this resolution to be sent to the TXU representative: Autry Warren, Rate Manager TXU Gas Distribution 1601 Bryan Street - Dallas, TX 75201-3402 and to: Jay B. Doegey, City Attorney City of Arlington P. O. Box 231 Arlington, TX 76004-0231 for forwarding to the Steering Committee. Section 6. That this resolution shall be effective from and after its date of passage. PASSED AND APPROVED this 13th day of May, 2002. / Michael J. Pfiester, ayor ATTEST: ` Mattie Cunningham, City Clerk APPROVED AS TO FORM: o . Larr y . Sch nk, City Attorney