HomeMy WebLinkAboutPO 7282: TEXAS GAS SERVICE COMPANY P.O. No. 7282
09/20/24 ht
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 IN THE
INCORPORATED AREAS OF THE CENTRAL-GULF
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 June 3, 2024, Texas Gas Service Company, a Division of ONE
Gas, Inc. ("TGS" or"Company") filed a Statement of Intent with the City of Port Arthur("City")
to increase gas rates in the incorporated areas of the Central-Gulf Service Area; and
WHEREAS, in its Statement of Intent, TGS proposed to increase its revenue requirement
by $25.6 million per year; 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,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
to October 6, 2024; 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, expert utility rate consultants retained to review TGS's rate increase on
behalf of the City and other similarly situated Cities recommended adjustments to TGS's proposed
rate of return, capital structure, depreciation recoveries, and other cost of service items, and
concluded that the Company failed to show that its requested rates are just and reasonable.
NOW THEREFORE,BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF PORT ARTHUR,TEXAS:
P.O. No. 7282
09/20/24 ht
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 Statement of Intent to increase rates in the incorporated areas
of the Central-Gulf Service Area 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 Gas Utility Regulatory Act § 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 this ordinance shall be effective immediately on passage.
READ,ADOPTED AND APPROVED on this day of
2024, at a 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
P.O. No. 7282
09/20/24 ht
APP OVED AS TO FORM:
LAtigeo
oxann P i Cotroneo
City Attorney
APPROVE I OR ADMINISTRATION:
61,**
Ronald B on, CPM
City Ma ager