HomeMy WebLinkAboutORD 24-059ORDINANCE NO. 24-059
AN ORDINANCE OF THE CITY OF BEAUMONT, 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 Beaumont ("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
ninety (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, THE CITY COUNCIL OF THE
CITY OF BEAUMONT, TEXAS HEREBY ORDAINS:
Section 1.
That the statements set out in the preamble to this ordinance are adopted herein as if set
forth herein.
Section 2.
TGS's Statement of Intent to increase rates in the incorporated areas of the Central -Gulf
Service Area is denied.
Section 3.
The Company shall maintain its current rates under its currently approved rate schedules,
Section 4.
The Company shall promptly reimburse the City's rate case expenses, as provided by Gas
Utility Regulatory Act § 103,022(a).
gPntinn 5
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.
This ordinance shall be effective immediately on passage.
PASSED BY THE CITY COUNCIL of the City of Beapmont this the 1st day of October,
2024.
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ATTEST;
- Mayor Roy West -