HomeMy WebLinkAboutPO 6813: TEXAS GAS SERVICE, PROPOSED TO INCREASE RATES P. O. No. 6813
12/31/19 gt
ORDINANCE NO.
AN ORDINANCE OF THE CITY OF PORT ARTHUR, TEXAS
AUTHORIZING THE SUSPENSION OF THE EFFECTIVE DATE
FOR AN ADDITIONAL NINETY (90) DAYS BEYOND THE
EFFECTIVE DATE PROPOSED BY TEXAS GAS SERVICE
COMPANY IN CONNECTION WITH ITS STATEMENT OF
INTENT TO INCREASE RATES FOR ITS GULF COAST
SERVICE AREA, CENTRAL TEXAS SERVICE AREA, AND THE
CITY OF BEAUMONT, FILED ON DECEMBER 20, 2019;
AUTHORIZING THE HIRING OF LAWYERS AND RATE
EXPERTS; AUTHORIZING THE CITY'S PARTICIPATION TO
THE FULL EXTENT PERMITTED BY LAW AT THE RAILROAD
COMMISSION OF TEXAS; REQUIRING REIMBURSEMENT OF
MUNICIPAL RATE CASE EXPENSES; FINDING THAT THE
MEETING COMPLIES WITH THE OPEN MEETINGS ACT;
MAKING OTHER FINDINGS AND PROVISIONS RELATED TO
THE SUBJECT; AND DECLARING AN EFFECTIVE DATE
WHEREAS, on or about December 20, 2019, Texas Gas Service Company, a
Division of ONE Gas, Inc. ("TGS" or the "Company") filed a Statement of Intent with
the City of Port Arthur ("City") to increase gas rates within the incorporated areas of the
Central Texas Service Area ("CTSA"), the Gulf Coast Service Area ("GCSA") and the
City of Beaumont by $17 million per year; and
WHEREAS, TGS's statement of intent includes a request to consolidate the
Central Texas, Gulf Coast, and City of Beaumont service areas into a single Central-Gulf
Service Area; and
WHEREAS, City has exclusive original jurisdiction over the rates, operations
and services of a gas utility in areas in the municipality pursuant to Tex. Util. Code
§103.001; and
WHEREAS, Gas Utility Regulatory Act § 103.021 requires a local regulatory
authority to make a reasonable determination of rate base, expenses, investment and rate
of return and retain the necessary personnel to determine reasonable rates; and
WHEREAS, the City's reasonable cost for regulatory expenses in ratemaking
proceedings shall be reimbursed by the gas utility under Gas Utility Regulatory Act §
103.022; and
WHEREAS, given the complexity of the proposed rate increase and the need to
fully review the proposed rate adjustment and request for consolidation, it is necessary to
s.po68I3
suspend the effective date for implementing the proposed rates until at least May 6, 2020
in order to allow the City's rate experts sufficient time to determine the merits of the
Company's proposal; and
WHEREAS, in order to maximize the efficient use of resources and expertise in
reviewing, analyzing, and investigating TGS's $17 million rate increase request, City's
efforts will be coordinated with similarly situated municipalities in the Company's
affected service areas; and
WHEREAS, the City will join with other municipalities in a steering committee
in order to coordinate the hiring and direction of counsel and consultants working on
behalf of the steering committee and the City.
NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF
THE CITY OF PORT ARTHUR, TEXAS:
Section 1. That the statement and findings set out in the preamble to this
ordinance are hereby in all things approved and adopted.
Section 2. That the effective date of TGS's proposed rate increase, and the
proposed tariffs related thereto, is hereby suspended for an additional ninety (90) days
until May 6, 2020 in order to complete the review and investigation by the City's experts.
Section 3. That the City is authorized to join with other municipalities as part
of the Gulf Coast Service Area Steering Committee with the understanding that the
steering committee will provide direction and guidance to the lawyers who are
representing said cities.
Section 4. That the City employs The Lawton Law Firm, P.C. to represent the
City with regard to the proposed rate increase of TGS before local and state regulatory
authorities and any court of law and authorizes counsel to employ such rate experts as are
recommended by the Steering Committee.
Section 5. That the Steering Committee shall review the invoices of the
lawyers and rate experts for reasonableness before submitting the invoices to TGS for
reimbursement.
Section 6. That the City's legal representatives shall have the right to obtain
additional information from TGS through the service of requests for information, which
shall be responded to within seven (7) calendar days of receipt of such requests for
information.
Section 7. That the TGS shall reimburse the City, through the designated
representative of the Steering Committee, for the reasonable costs of attorney and
consultant fees and expenses related thereto, upon the presentation of invoices reviewed
by the Steering Committee.
s.po6813
Section 8. That the meeting at which this ordinance was approved was in all
things conducted in strict compliance with the Texas Open Meetings Act, Texas
Government Code, Chapter 551.
Section 9. That this ordinance shall become effective from and after its
passage.
READ, ADOPTED AND APPROVED on this day of January A.D., 2020,
at a Regular Meeting of the City Council of the City of Port Arthur, Texas, by the
following vote: AYES:
Mayor:
Councilmembers:
NOES:
Thurman Bill Bartie, Mayor
ATTEST:
Sherri Bellard, City Secretary
APPROVED AS TO FORM:
j1/41 Li- (-)
Valecia R. Tizen►•► ity Attorney
APPROVED FOR ADMINISTRATION:
Ronald Burton, City Manager
S.p06813