HomeMy WebLinkAboutPO 6625: TEXAS GAS SERVICE COMPANY P.O. No. 6625
6/28/17 gt
ORDINANCE NO.
AN ORDINANCE OF THE CITY OF PORT ARTHUR, TEXAS, SETTING
THE JUST AND REASONABLE RATES FOR THE COST OF SERVICE
ADJUSTMENT CLAUSE TO BE CHARGED BY TEXAS GAS SERVICE
COMPANY, A DIVISION OF ONE GAS, INC. FOR GAS SERVICE
CUSTOMERS IN THE CITY OF PORT ARTHUR, TEXAS; REQUIRING
REIMBURSEMENT OF RATE CASE EXPENSES; FINDING THAT THE
MEETING COMPLIES WITH THE OPEN MEETINGS ACT; AND
DECLARING AN EFFECTIVE DATE FOR THIS ORDINANCE.
WHEREAS, on or about April 28, 2017, Texas Gas Service Company, a division
of ONE Gas, Inc. ("Company") filed a Cost of Service Adjustment ("COSA") application
with the City of Port Arthur, Texas ("City") requesting an annual rate increase for its
Gulf Coast Service Area pursuant to the COSA Tariff, Rate Schedule No. 1-1 previously
approved by the City ("COSA Tariff"); and
WHEREAS, City has exclusive original jurisdiction over the rates, operations and
services of a gas utility in areas in the municipality pursuant to Gas Utility Regulatory
Act § 103.001; and
WHEREAS, the Compaiy requested an annual revenue increase of $234,621;
and
WHEREAS, the Company's request would result in a $0.36 rate increase per
month for residential customers, a $1.80 rate increase per month for commercial
customers, a $2.36 rate increase per month for public authority customers, and a
$43.41 rate increase per month for industrial customers; and
WHEREAS, the Company proposed an effective date of July 27, 2017, for the
rate increase; and
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WHEREAS, in order to exercise its exclusive original jurisdiction and properly
review the requested rates, it is necessary for the City to make a decision within 90
days of the filing, or July 27, 2017; and
WHEREAS, the COSA Tariff requires the Company to give notice of the annual
cost of service adjustment in a form similar to that required under Section 104.103 of
the Texas Utilities Code not later than 60 days after the filing, or June 27, 2017; and
WHEREAS, the City retained the Lawton Law Firm, P.C. to review the
Company's rate request and make necessary rate recommendations to the City; and
WHEREAS, the Lawton Law Firm provided the City with a report on this matter
outlining the options available and making recommendations to the City; and
WHEREAS, the Lawton Law Firm has determined that the proposed COSA rate
increase is consistent with the requirements and formulae of the COSA Tariff and
therefore recommended that the City approve the requested COSA annual rate
increase;
NOW THEREFORE, BE IT ORDAINED BY CITY COUNCIL OF THE CITY OF
PORT ARTHUR:
Section 1. That the statements set out in the preamble to this ordinance are
adopted herein as if set forth herein. .
Section 2. That based on the recommendations and review presented by the
legal/rate consultant Lawton Law Firm, the proposed COSA rate increase is consistent
with the requirements and formulae of the COSA Tariff.
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Section 3. That the proposed COSA rate increase is therefore approved
effective July 27, 2017, subject to completion of notice as required under the COSA
Tariff with Proof of Notice filed with the City Secretary.
Section 4. That the Company shall file tariffs with the City Secretary reflecting
the annual rate increase.
Section 5. That the Company shall promptly reimburse the City's rate case
expenses, as provided by Gas Utility Regulatory Act, Texas Utilities Code § 103.022(a)
and the COSA tariff currently in effect.
Section 6. That the meeting at which this resolution was approved was in all
things conducted in strict compliance with the Texas Open Meetings Act, Texas
Government Code, Chapter 551.
Section 7. That this ordinance shall be effective immediately on passage.
READ, ADOPTED AND APPROVED on this day of ,
2017, at a Meeting of the City Council of the City of Port Arthur, Texas, by the following
vote: AYES:
Mayor: ,
Councilmembers: ,
NOES: .
Derrick Freeman, Mayor
ATTEST:
Sherri Bellard, City Secretary
APPROVED AS TO FORM:
Vbk Q ` I`
Val Tizeno, City A rney
APPROVED FOR ADMINISTRATION:
Brian McDougal, City Manager
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