HomeMy WebLinkAboutPO 6784: TEXAS GAS SERVICE COMPANY P.O. No. 6784
06/07/19 gt
ORDINANCE NO.
AN ORDINANCE OF THE CITY OF PORT ARTHUR, TEXAS DENYING
THE STATEMENT OF INTENT OF TEXAS GAS SERVICE COMPANY, A
DIVISION OF ONE GAS INC., TO INCREASE RATES TO RECOVER
HURRICANE HARVEY RESPONSE COSTS WITHIN THE GULF COAST
SERVICE AREA; REQUIRING REIMBURSEMENT OF MUNICIPAL
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 16, 2019, Texas Gas Service Company ("TGS" or
"Company") filed a Statement of Intent with the City of Port Arthur ("City") and with the
Texas Railroad Commission to implement a Hurricane Harvey Surcharge in the Gulf Coast
Service Area to collect $357,194 per year for two years, with an effective date of May 21,
2019; and
WHEREAS, City has exclusive original jurisdiction over the rates, operations and
services of a gas utility in areas in the municipality pursuant to the Gas Utility Regulatory
Act ("GURA"), Texas Utilities Code § 103.001; and
WHEREAS, in order to exercise its exclusive original jurisdiction and properly
review the requested rates, it was necessary for the City to suspend TGS's proposed
effective date for 90 days until August 19, 2019; and
WHEREAS, the City retained the Lawton Law Firm, P.C. to review TGS's rate
request and make necessary rate recommendations to the City; and
WHEREAS, GURA § 103.021 requires the City to "make a reasonable
determination of rate base, expenses, investment, and rate of return in the municipality"
when making a rate determination; and
WHEREAS, the Lawton Law Firm recommended that the City deny the requested
Statement of Intent to implement a Hurricane Harvey Surcharge. The Company requests
piecemeal rate recovery of operating expenses related to its response to Hurricane Harvey
and does not include sufficient evidence of the Company's rate base, expenses,
investment, or rate of return in the municipality as required by GURA. The City is unable
to determine that the requested recovery is just, reasonable, and in the public interest,
therefore the City lacks jurisdiction to grant the requested rate relief.
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NOW,THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF PORT ARTHUR, TEXAS:
Section 1. That the statements set out in the preamble to this ordinance are
adopted herein as if set forth herein.
Section 2. That TGS's proposed Hurricane Harvey Surcharge is denied.
Section 3. That the Company shall maintain its current rates under its currently
approved rate schedules.
Section 4. That the Company shall promptly reimburse the City's rate case
expenses, as provided by GURA § 103.022(a).
Section 5. That the meeting at which this ordinance was approved was in all
things conducted in strict compliance with the Texas Open Meetings Act, Chapter 551.
Section 6. That a copy of the caption of this Ordinance be spread upon the
Minutes of the City Council.
Section 7. That this ordinance shall be effective immediately on passage.
READ, ADOPTED AND APPROVED on this day of June A.D., 2019, at a
Regular Meeting of the City Council of the City of Port Arthur, Texas, by the following
vote: AYES:
Mayor: ,
Councilmembers: ,
NOES: .
Derrick Ford Freeman
ATTEST:
Sherri Bellard
City Secretary
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APPROVED AS TO FORM:
/2/4,i
Valecia R. Tizeo
City Attorney
APPROVED FOR ADMINISTRATION:
Rebecca Underhill
Interim City Manager
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