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