HomeMy WebLinkAboutORD 20-001ORDINANCE NO. 20-001
ORDINANCE OF THE CITY OF BEAUMONT, 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 Beaumont ("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 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 RESOLVED BY THE
CITY COUNCIL OF THE CITY OF BEAUMONT:
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.
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.
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.
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.
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.
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.
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.
Section 8.
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.
This ordinance shall become effective from and after its passage.
PASSED BY THE CITY COUNCIL of the City of Beaumont this the 14th day of
January, 2020.
EST:
- or Becky Ames -