HomeMy WebLinkAboutPO 6791: SETTING REASONABLE RATES, TEXAS GAS SERVICE P. O. No. 6791
07/01/19 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 26, 2019, 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 Company requested an annual revenue increase of$209,539; and
WHEREAS, the Company's request would result in a $0.32 rate increase per
month for residential customers using an average of 28 Ccf per month; and
WHEREAS, the Company proposed an effective date of July 25, 2019, for the rate
increase; 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 25, 2019; and
WHEREAS, the Company gave notice of the annual COSA adjustment as required
by the COSA Tariff; 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
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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
increase is 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. 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.
Section 3. That the proposed COSA rate increase is therefore approved
effective July 25, 2019.
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 A.D.,
2016, at a Regular Meeting of the City Council of the City of Port Arthur, Texas, by the
following vote: AYES:
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Mayor:
Councilmembers:
NOES:
Thurman "Bill" Bartie
Mayor
ATTEST:
Sherri Bellard
City Secretary
APPROVED AS TO FORM:
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Valecia R.�-no �.11"11117 w If"'" _2
City Attorney
APPROVED FOR ADMINISTRATION:
Rebecca Underhill
Interim City Manager
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