HomeMy WebLinkAboutPO 7347: SUSPENSION OF THE EFFECTIVE DATE FOR AN ADDITIONAL 90 DAYS PROPOSED BY TEXAS GAS SERVICE COMPANYir
P.O.No. 7347
07/14/25 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, A DIVISION OF ONE GAS, INC. IN CONNECTION
WITH ITS STATEMENT OF INTENT TO INCREASE GAS RATES,
FILED ON JUNE 30, 2025; 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 June 30, 2025, 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 within its Central-Gulf Service Area, West North
Service Area, and Rio Grande Valley Service Area, by $41.1 million per year, with a
proposed effective date of August 19, 2025; and
WHEREAS, City has exclusive original jurisdiction over the rates, operations and
services of a gas utility in areas in the municipality pursuant to Texas Utilities Code §
103.001; and
WHEREAS, Texas Utilities Code § 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 Texas Utilities Code § 103.022;
and
WHEREAS, Texas Utilities Code § 104.107(a)(1) authorizes a local regulatory
authority to suspend a utility's proposed rate change for not longer than 90 days after the
date the rate change would otherwise be effective; and
WHEREAS, given the complexity of the proposed rate increase and the need to
fully review the proposed rate adjustment, it is necessary to suspend the effective date for
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implementing the proposed rates until November 17, 2025,to allow the City's rate experts
sufficient time to determine the merits of TGS's proposed rates; and
WHEREAS,to maximize the efficient use of resources and expertise in reviewing,
analyzing, and investigating TGS's $41.1 million rate increase request, City's efforts will
be coordinated with similarly situated municipalities in TGS's Central-Gulf Service Area;
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
November 17, 2025, in order to complete the review and investigation by City's experts.
Section 3. That the City is authorized to join with other municipalities as part
of the TGS Central-Gulf Service Area Steering Committee of Cities 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 TGS's proposed rate increase 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 TGS shall reimburse the City, through the designated
representative of the Steering Committee, for the reasonable costs of attorneys and
consultant fees and expenses related thereto, upon the presentation of invoices reviewed
by the Steering Committee.
Section 7. 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.
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Section 8. That this ordinance shall become effective from and after its
passage.
READ, ADOPTED, AND APPROVED, this _ day of July, 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:
Charlotte M. Moses, Mayor
ATTEST:
Sherri Bellard, City Secretary
APPROVED AS TO FORM:
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Roxann Pais Cotroneo, City Attorney
APPROV INISTRATION:
Ron Burton, , ity Manager
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