HomeMy WebLinkAboutPO 6708: SETTING RATES, TEXAS GAS SERVICE P.O. No. 6708
06/15/18 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 27, 2018, 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 decrease 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 Company requested an annual revenue decrease of $817,178;
and
WHEREAS, the Company's request would result in a $1.26 rate decrease per
month for residential customers using an average of 20 Ccf per month and one-time
refund of $10.62 per customer to reflect the impact of the new federal corporate tax
rate established by the Federal Tax Cuts and Jobs Act of 2017 ("TOA"), which went
into effect January 1, 2018; and
WHEREAS, the Company proposed an effective date of July 26, 2018, for the
rate decrease; and
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 26, 2018; and
WHEREAS, the Company gave notice of the annual COSA adjustment as
required by the COSA Tariff; and
s.po6708
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
which included recommendations to the City; and
WHEREAS, the Lawton Law Firm has determined that the proposed COSA rate
decrease and one-time TOA refund are consistent with the requirements and formulae
of the COSA Tariff and therefore recommended that the City approve the Company's
request.
NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE
CITY OF PORT ARTHUR, TEXAS:
Section 1. The statements set out in the preamble to this ordinance are
adopted herein as if set forth herein.
Section 2. 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.
Section 3. The proposed COSA rate increase is therefore approved effective
July 26, 2018.
Section 4. The Company shall file tariffs with the City Secretary reflecting the
annual rate increase.
Section 5. 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. 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. This ordinance shall be effective immediately on passage.
READ, ADOPTED AND APPROVED on this day of A.D.,
2018, at a Regular Meeting of the City Council of the City of Port Arthur, Texas, by the
following vote: AYES:
s.po6708
Mayor: ,
Councilmembers: ,
NOES: .
Derrick Ford Freeman, Mayor
ATTEST:
Sherri Bellard, City Secretary
APPROVED AS TO FORM:
\\IOLC .)'/I 1 -4-x_b
Valecia R. Ti o, City Attorney
APPROVED FOR ADMINISTRATION:
Harvey Robinson, Interim City Manager
s.po6708