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
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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.
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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