HomeMy WebLinkAboutPO 7313: SUSPENDING THE RATES PROPOSED BY TEXAS GAS SERVICE COMPANY'S P.O.No. 7313
02/24/2025 gt
ORDINANCE NO.
AN ORDINANCE OF THE CITY OF PORT ARTHUR, TEXAS,
SUSPENDING THE RATES PROPOSED BY TEXAS GAS SERVICE
COMPANY'S GAS RELIABILITY INFRASTRUCTURE
PROGRAM FILING MADE WITH THE CITY ON OR ABOUT
FEBRUARY 11,2025; 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 February 11,2025,Texas Gas Service Company("TGS"
or "Company") filed an Annual Gas Reliability Infrastructure Program ("GRIP")
adjustment with the City of Port Arthur ("City") to increase gas rates in the Central-Gulf
Service Area pursuant to Gas Utility Regulatory Act, TEX. UTIL. CODE ("Gas Utility
Regulatory Act") § 104.301; and
WHEREAS, the Company proposed an effective date April 12, 2025, for the
requested increase unless the City suspends the date for a period no longer than forty-five
(45) days; and
WHEREAS, the 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, Gas Utility Regulatory Act § 104.301 requires a streamlined process
for the recovery of the costs of incremental investment by a gas utility; and
WHEREAS, the City's review of TGS's GRIP filing is limited to a ministerial
review of the filing for compliance with the statute; and
WHEREAS,the City finds the need to suspend the effective date of the Company's
requested rate increase for 45 days beyond the Company's proposed effective date until
May 27, 2025, in order to review the Company's filing for compliance with Gas Utility
Regulatory Act § 104.301; and
WHEREAS,the reasonableness of the Company's investment will be reviewed in
a future base rate case where all amounts collected through the Company's GRIP filing
will be subject to refund.
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 the Company's proposed GRIP rate
increase, and the proposed tariffs related thereto, is hereby suspended until May 27, 2025.
Section 3. That to the extent the City finds that the rates proposed by the
Company's filing comply with Gas Utility Regulatory Act § 104.301, then the rates will
become effective by operation of law on May 27, 2025.
Section 4. That the meeting at which the ordinance was approved was in all
things conducted in strict compliance with the Texas Open Meetings Act, Texas
Government Code, Chapter 551.
Section 5. That this Ordinance shall become effective from and after its
passage.
READ, ADOPTED, AND APPROVED, this_ day of March, 2025, A.D., 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:
Roxann Pais Cotroneo, City Attorney
APPROVED F DMINISTRATION:
Ron Burton, C , Manager