04-A TXU Gas Rate Case DRAFT
F:~Attorney\Lisa~esolutions\CURRENT\TXU Rate Change Res.wpd
May 28, 2003
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS,
PARIS, TEXAS, SUSPENDING THE EFFECTIVE DATE OF TXU GAS
DISTRIBUTION'S REQUESTED RATE CHANGES TO PERMIT THE CITY
TIME TO STUDY THE REQUEST AND TO ESTABLISH REASONABLE
RATES; APPROVING COOPERATION WITH OTHER CITIES WITHIN
THE TXU GAS DISTRIBUTION SYSTEM TO CREATE A STEERING
COMMITTEE TO HIRE LEGAL AND CONSULTING SERVICES AND TO
NEGOTIATE WITH THE COMPANY AND DIRECT ANY NECESSARY
LITIGATION; REQUIRING REIMBURSEMENT OF CITIES' RATE CASE
EXPENSES; AUTHORIZING INTERVENTION IN THE PROCEEDING AT
THE RAILROAD COMMISSION; REQUIRING NOTICE OF THIS
RESOLUTION TO THE COMPANY; MAKING OTHER FINDINGS AND
PROVISIONS RELATED TO THE SUBJECT; AND DECLARING AN
EFFECTIVE DATE.
WHEREAS, on or about May 23, 2003, TXU Gas Distribution, a division of TXU Gas
Company, filed with the City of Paris, Paris, Texas, a Statement of Intent to change gas rates in all
municipalities within the TXU Gas Distribution System; and,
WHEREAS, it is reasonable for the City of Paris to cooperate with other cities in a review
of the Company's application and create a Steering Committee to coordinate the hiring and direction
of legal counsel and consultants and to negotiate with the Company and direct any necessary
litigation; and,
WHEREAS, the Gas Utility Regulatory Act grants local regulatory authorities the right to
suspend the effective date of proposed rate changes; and,
WHEREAS, the Gas Utility Regulatory Act provides that costs incurred by Cities in
ratemaking activities are to be reimbursed by the regulated utility; and,
WHEREAS, the Gas Utility Regulatory Act grants local regulatory authorities the right to
intervene in rate proceedings filed at the Railroad Commission; 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 the effective date of the tariff changes submitted by TXU Gas Distribution
on or about May 23, 2003, be suspended to permit adequate time to review the proposed changes
and to establish reasonable rates.
Section 3. That the City is authorized to cooperate with other Cities within the TXU Gas
Distribution System to create a Steering Committee to hire and direct legal counsel and consultants,
negotiate with the Company, make recommendations to the City regarding reasonable rates and to
direct any necessary litigation associated with an appeal of a rate ordinance and the rate case filed at
the Railroad Commission.
Section 4. That the City's reasonable rate case expenses shall be reimbursed by TXU Gas
Distribution.
Section 5. That the City is authorized to intervene in TXU Gas Distribution's rate case filed
at the Railroad Commission filed on or about May 23, 2003.
Section 6. That a copy of this suspension resolution be sent to the local representative of
TXU Gas Distribution.
Section 7. That this resolution shall be effective this 9th day of June, 2003.
PASSED AND APPROVED this 9th day of June, 2003.
Curtis Fendley, Mayor
ATTEST:
Mattie Cunningham, City Clerk
APPROVED AS TO FORM:
Larry W. Schenk, City Attorney
LLOYD, GOSSELINK, BLEVINS, ROCHELLE,
BALDWIN & TOWNSEND, P.C.
ATTORNEYS AT LAW
111 CONGRESS AVENUE TELEPHONE (512) 322-5800
SUITE1800 Mr. Gay's Direct Line: (512)322-5875 TELECOPIER (512)472-0532
AUSTIN, TEXAS 78701 Email: ggay~glawfin'n.com www.lglawfirm.com
MEMORANDUM
TO: Client Cities Served By TXU Gas
FROM: Geoffrey M. Gay
DATE: June 6, 2003
RE: Passage Of Resolution To Extend Effective Date For Implementation Of New
Gas Rates
Just a reminder -- your city must take action on the proposed rate increase of TXU Gas
by June 26, 2003, since June 27 is the effective date. The statute provides that a city may extend
the effective date for ninety (90) days, but you must take that action before the effective date.
From the list of approximately 150 cities that I have previously represented in gas utility rate
matters, around 30 have already passed the suspension resolution provided by the Steering
Committee or notified me of when they intend to take such action. Cities that have provided a
copy of the resolution suspending rates, joining the coalition and authorizing intervention at the
RRC include: Arlington, Blue Ridge, Bowie, College Station, Early, Ennis, Frisco, Gainesville,
Highland Park, Lewisville, Mesquite, Murphy, Piano, Putnam, Sherman, Snyder, Sulphur
Springs, The Colony, Vemon, and Waxahachie. Cities that have indicated passage when passage
is expected include: Abilene, Allen, Benbrook, Colleyville, Duncanville, Fort Worth, Henrietta,
Kaufman, and Kerrville. Other Cities have been in touch with various lawyers who work with
me. If you need another copy of the model resolution, please contact my office. If you have any
questions about what action to take or any confusion caused by either TXU or other parties
trying to influence the action of your city, please call me or Jay Doegey. If you are unable to
reach me when you call my office, please ask for Betsy Todd, Georgia Crump, or Kristen Doyle.
All three of these ladies are experienced public utility lawyers who will be assisting me with
litigation before the Railroad Commission.
1668\09~mmoO30606gmg
To: Chesser (E-mail); Pete Eckert (E-mail); Randy IVloravec (E-
mail); Richard Fletcher (E-mail); Richard Torres (E-mail);
Rickey C. Childers (E-mail); Rob Allibon (E-mail); Robert
Holmes (E-mail); Robert Sokoll (E-mail); Roger Carlisle (E-
mail); Ron Patterson (E-mail); Ronald Whitehead (E-mail);
Rondella Hawkins (E-mail); Ronnie Lyon (E-mail); Rosa
Stovall (E-mail); S. G. "Scooter" Radcliffe (E-mail); Sam
Listi (E-mail); Sam Watson (E-mail); Scott Campbell (E-
mail); Shana Miller (E-mail); Sharon Elam (E-mail); Sharon
Hicks (E-mail); Shelli Siemer (E-mail); Sonny Hood (E-
mail); Stan Lowry (E-mail); Stan Wilkes (E-mail); Steve
Bacchus (E-mail); Steve Goram (E-mail); Sue Foster (E-
mail); Susan K. Thorpe (E-mail); Terry MclVlasters (E-mail);
Tex Selvidge (E-mail); Thomas Caffall (E-mail); Tom Akins
(E-mail); Tom Hart (E-mail); Tommy New (E-mail); Truitt
Gilbreath (E-mail); Van lames (E-mail); Virginia Blevins (E-
mail); William Munson (E-mail); Yousry Zakhary (E-mail)
Subject: PASSAGE OF RESOLUTION
mmoO30606gmg
memo to client ..
Attached is a memo from Geoffrey Gay regarding the passage of resolution to extend effective date for
implementation of new gas rates.
<<mmo030606gmg memoto client
cities re passage of resolution to extend effective date.doc>>
Gall Johle
gjohle@lglawfirm.com
Lloyd, Gosselink, Blevins, Rochelle, Baldwin & Townsend, P.C.
111 Congress Avenue, Suite 1800
Austin, Texas 78701
(512) 322-5800 phone
(512) 322-5877 direct
(512) 472-0532 fax
If you would like more information about the firm, please visit our website at www.lglawfirmcom
CONFIDENTIALITY NOTICE: This electronic message is for the sole use of the intended recipient(s) and is confidential
and may be privileged. If you have received this transmission in error, you are hereby notified that any use, dissemination,
distribution, or reproduction of this transmission is strictly prohibited. If you are not the intended recipient, please contact
the sender by e-mail and destroy all copies of the original message. Thank you.
Alice Pinalto
From: Gall Johle [gjohle@lglawfirm.com]
Sent: Friday, June 06, 2003 12:01 PM
To: Alan Hein (E-mail); Anthony "Biff" Johnson (E-mail); Art
Pertile (E-mail); Barbara Alavarado (E-mail); Belinda Peek
(E-mail); Betty McMenamy (E-mail); Bill Atkinson (E-mail);
Bill Davison (E-mail); Bill Flannery (E-mail); Billie Pearce
(E-mail); Billy Campbell (E-mail); Blaine Hinds (E-mail); Bo
Bass (E-mail); Bob Livingston (E-mail); Cary K. Conklin (E-
mail); Cathy Cunningham (E-mail); Charles Rowland (E-
mail); Chester Nolen (E-mail); Chuck Barnett (E-mail);
Cindy Scott (E-mail); Clayton Chandler (E-mail); Clinton
Bittick (E-mail); Codi Delcambre (E-mail); Collin Boothe (E-
mail); Connie Goodwin (E-mail); Curtis Snow (E-mail);
Dale Cheatham (E-mail); Daniel Crawford (E-mail); Danny
Reed (E-mail); David Christian (E-mail); David Maddox (E-
mail); David Miller (E-mail); David Vestal (E-mail); Debra
Wallace (E-mail); Deck Shaver (E-mail); Dennis Watson (E-
mail); Diane Rasor (E-mail); Diane Wetherbee (E-mail);
Don Stout (E-mail); Donna Anderson (E-mail); Donna
Welsh (E-mail); Frances Slater (E-mail); George Patterson
(E-mail); George Purefoy (E-mail); George Staples (E-
mail); Gerry Boren (E-mail); Gus Pappas (E-mail); H. Louis
Nichols (E-mail); Harvey Cargill Jr. (E-mail); Herbert L.
Prouty (E-mail); James B. Baugh (E-mail); James Blystone
(E-mail); James Draper (E-mail); James Quin (E-mail);
Janet Adkins (E-mail); Jay Doegey (E-mail); Jeft Jones (E-
mail); ]im Berzina (E-mail); Jim Murray (E-mail); Jim Witt
(E-mail); Joe Hennig (E-mail); 3oe LaBeau (E-mail); ~loe
Ragsdale (E-mail); John Daniel (E-mail); lohn Gayle (E-
mail); John Gilliam (E-mail); John Godwin (E-mail); John
Skotnik (E-mail); Judy Bell (E-mail); Julie Couch (E-mail);
Kandi Hubert (E-mail); Karin Herrmann (E-mail); Kay
Torres (E-mail); Ken Heerman (E-mail); Ken Pfeifer (E-
mail); Ken Seale (E-mail); Kent Cagle (E-mail); Kerry Lacy
(E-mail); Lance Van Zandt (E-mail); Larry Cunningham (E-
mail); Larry Robinson (E-mail); Larry Schenk (E-mail);
Larry Smith (E-mail); Lee Roy George (E-mail); Lyle
Dresher (E-mail); Lynn Nunns (E-mail); Marc Maxwell (E-
mail); Margaret Somereve (E-mail); Margaret Ward (E-
mail); Martin Lee (E-mail); Mary Kay Fischer (E-mail); Mary
Kaye Moore (E-mail); Mary O. Daly (E-mail); Melisa Leal
(E-mail); Michael Hitt (E-mail); Michael J. Savoie (E-mail);
Michael Land (E-mail); Michael Talbot (E-mail); Mike Castro
(E-mail); Mike Slye (E-mail); Milburn A. Yantis (E-mail);
Minnie Walker (E-mail); Nick Fehrenbach (E-mail); Pat
RightFAX 5~28~2003 11:47 PAGE 313 RightFax
LLOYD, GOSSELINK, BLEVINS, ROCHELLE,
BALDWIN & TOWNSEND, P.C.
ATTORNEYS AT LAW
11 CONGRESS AVENUE TELEPHONE (512) 322-5800
SUITE 1800 Mr. Ga~s Direct Line: (512) 322-5875 TELECOPIER (512) 472-0532
AUSTIN, TEXAS 75701 Emai~: ggay~lglaw~rm.com ',~ww. lgla~rm,com
MEMORANDUM
TO: Client Cities Served By TXU Gas
FROM: Geoffrey M. Gay
DATE: May 27, 2003
RE: URGENT - Documents received from TXU &/or ONCOR
If you receive a draft resolution or ordinance from TXU or ONCOR representatives
regarding the gas rate case filed May 23, 2003, please disregard it and instead refer to my
memo of May 20, 2003 and the attached model resolution. The model resolution I provided to
you provides the necessary protection as to the schedule for this case until the Cities and TXU
can reach agreement on procedural issues. Adoption of the model resolution is the only action
cities should take on this case until further notice. Adoption of the draft ordinance being
circulated by TXU/ONCOR would automatically accelerate the time deadlines for action in the
case and negatively affect our position and ability to manage the case. Despite an agreement
with TXU that they would not circulate their draft ordinance to the cilies in our group, at least
one city has received the ordinance with instructions from the ONCOR representative to submit
it to the city council for action. Do not follow uny directives from TXU and/or ONCOR
representatives about this ease and notify my office immediately should you receive any
documents or instructions from them.
1668\09~mmo03052?brt
RightFAX 5/28/2003 11:47 PAGE 113 RightFax
Lloyd, Gosselink, Blevins, Rochelle, Baldwin & Townsend, P.C.
P.O. Box 1725
Austin, Texas 78767
Telephone: (512) 322-5800
Facsimile: (512) 472-0532
T£L£COP~£g Cov£g SHE£T
05/28/2003 9:54:04 AM
pLEASE DELIVER THE FOLLOWING PAGES:
To: Sch~Laa7
F~rm:
Telecopy No.: (903) 785-8519
Verification No.:
Client No.: 1668
Malter No.: 09
From: Gail Johle
No. of Pages: 2+ cover sheet
Comments: URGENT - Documents Received From TXU and/or Oncor
~ YOU Do NOT R~CEIVE ALL PAGES. PLeA.e4{ CALL US A.$ SOO~ A2 PO~SI~.E AT (512} 322-5~00
THE ~O~ATIO~ ~D ~ T~S FA~ ~SA~ ~ A~O~Y F~v~GED A~ ~E~ I~O~A~ON
COPING OF ~5 CO--CATION TO A~O~ ~R THAN T~ ~ ~D~5S~ IS ST~Y ~OH~D · YOU RA~
~5SAG~ TO US AT ~ ~O~ ~D~S$ VIA ~ U S ~T~ S~VI~ ~A~ YOU
RightFAX 512812003 11:47 PAGE 213 RightF&x
Attached is a memo from Geoffrey Gay regarclng documents received frcm T×U and/ct Oncor for
the gas rate case fi~ed Friday, May 23, 2003,
LLOYD, GOSSELINK, BLEVINS, ROCHELLE,
BALDWIN & TOWNSEND, P.C.
ATTORNEYS AT LAW
111 CONGRESS AVENUE TELEPHONE (512) 322-5800
SUITE1800 Mr. Gay's Direct Line: (512)322-5875 TELECOPIER (512)472-0532
AUSTIN, TEXAS 78701 Ernail: ggay@lglaw~irm.corn www.lglawfirmcom
MEMORANDUM
TO: Client Cities Served By TXU Gas
FROM: Geoffrey M. Gay
Kristen Doyle
DATE: May 23, 2003
RE: Procedure For Processing New Rate Case
In our May 20, 2003, memorandum regarding the gas rate case TXU filed today, we
provided you with a model resolution that suspends the effective date of TXU's rate request.
Since that time, we have heard from several cities regarding some confusion as to what actions
must be taken on a city level. For purposes of the procedural timeline, it is critical that your
city adopt the resolution we provided you suspending the effective date of TXU's new rates
within 35 days (June 26, 2003).
Cities and TXU are currently in discussions regarding procedural issues that may lead the
Steering Committee of Cities to recommend denial of rate relief on an expedited basis in
exchange for TXU agreeing to extend its effective date to create 115 extra days of time (for a
total of 300 days) at the Commission. However, that agreement has not yet been finalized. We
have heard that TXU is encouraging all cities to immediately deny the requested increase, and
may have provided your city with a model ordinance doing so. Denial of rate relief should not
be done until a procedural agreement is in place. If a city were to deny TXU's rate request
immediately, rather than suspending the effective date, the denial could serve to trigger
procedural timelines associated with appeals to the Railroad Commission that would
significantly shorten the timeline for review. This action would hurt all cities served by TXU.
The suspension provides all cities time necessary to cement a procedural agreement with TXU
and to investigate the evidence provided by TXU justifying its request.
If you have questions or need another copy of the model resolution, please contact
Geoffrey or Kfisten at (512)322-5877.
1668\09~mmoO30523kpd
LLOYD, GOSSELINK, BLEVINS, ROCHELLE,
BALDWIN & TOWNSEND, P.C.
ATTORNEYS AT LAW
111 CONGRESS AVENUE TELEPHONE (512) 322-5800
SUITE1800 Mr. Gay's Direct Line: (512)322-5875 TELECOPIER (512)472-0532
AUSTIN, TEXAS 78701 Email: ggay~lglawfirrn.com www.lglawfirm.com
MEMORANDUM
TO: Client Cities Served By TXU Gas
FROM: Geoffrey M. Gay
DATE: May 20, 2003
RE: Procedure For Processing New Rate Case
Approximately 50 city representatives met in Arlington on May 9, 2003 to discuss the
statewide rate case that TXU Gas plans to file on Friday, May 23.
Pursuant to thc directives of that group, I have attached a model resolution for your city
to adopt. Thc resolution accomplishes the following objectives:
1. It suspends the effective date of proposed new rates for the maximum period
allowed by law. However, it does not specifically identify the end of the
suspension period because it is anticipated that TXU and Cities will reach an
agreement on procedural issues that will cause TXU to move its effective date to
increase the amount of time the Railroad Commission has to process the case.
2. It commits the city to cooperation with other similarly situated cities to a joint
review of the Company filing, the sharing of consultants and to joint participation
at the Railroad Commission.
3. It authorizes intervention at the Railroad Commission. Pipeline issues and rates
have historically been under the exclusive jurisdiction of the Railroad
Commission and TXU plans to file simultaneously with the Cities and the
Commission because the Company plans to consolidate the Pipeline and
Distribution systems under a single set of rates. Issues of concern to Cities will
emerge at the Commission immediately upon filing and Cities cannot afford to
postpone involvement at the Commission until TXU appeals local rate setting or
denial of the requested increase.
Upon adoption of the attached or similar resolution, please email or fax a copy to
me (~a¥~lglawfirm.com or (512) 472-0532 fax) and to Jay Doegey, City
Attorney o~ Arlington (doegeyj~ci.arlington.tx.us or 817-459-6897 fax).
1668\09~mmoO30520gmg
It is not anticipated that there will be any assessment or monetary encumbrance for
participating Cities. Rate case expenses of Cities will be reimbursed by TXU and adequate funds
appear to be available from old Lone Star Gas ratemaking funds to cover initial costs until
reimbursement is arranged.
Cities and TXU are currently in discussion regarding procedural issues that may lead the
Steering Committee of Cities to recommend denial of rate relief on an expedited basis in
exchange for TXU agreeing to extend its effective date to create 115 extra days of time (for a
total of 300 days) at the Commission. TXU is encouraging all Cities to immediately deny the
requested increase, but that should not be done until a procedural agreement is in place. The
rates should be suspended and suspension must occur within 35 days of the date TXU files it
case or the Company will have an opportunity to implement the rates in the City as filed.
1668\09~mmoO30520gmg