HomeMy WebLinkAboutORD 24-060ORDINANCE NO. 24-060
AN ORDINANCE BY THE CITY OF BEAUMONT, TEXAS
AUTHORIZING THE SETTLEMENT OF TEXAS GAS SERVICE
COMPANY, A DIVISION OF ONE GAS, INC.'S STATEMENT OF
INTENT TO INCREASE RATES WITHIN THE CENTRAL -GULF
SERVICE AREA, FILED ON JUKE 3, 2024; 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 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")
and concurrently with the Railroad Commission of Texas ("Railroad Commission") to increase
gas rates within 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, the City joined the Steering Committee of Cities to intervene and participate
in the Railroad Commission proceedings; and,
WHEREAS, the City denied the Company's rate request and the Company appealed or
will appeal the City's rate denial ordinance to the Commission; and,
WHEREAS, TGS, Railroad Commission Staff, and other intervening parties including
the Steering Committee of Cities participated in settlement discussions to resolve all contested
rate case issues without litigation; and,
WHEREAS, TGS agreed to settle the rate request at an overall rate increase level of
$19.3 mullion per year for the Central -Gulf Service Area combined; and,
WHEREAS, the Railroad Commission Staff, the Lawton Law Firm, and counsel for other
cities participating in this proceeding have recommended approval of the Settlement terms as a
reasonable alternative to resolve all contested rate case issues without the need for prolonged
litigation,
NOW THEREFORE, BE IT ORDAINED BY THE CITY
COUNCIL OF THE CITY OF BEAUMONT, TEXAS, THAT:
Section 1.
The statement and findings set out in the preamble to this ordinance are hereby in all things
approved and adopted.
Section 2.
The City hereby authorizes the settlement of the TGS rate case proceeding at an overall rate
increase level of $19,3 million per year.
Section 3,
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 4.
This ordinance shall become effective from and after its passage.
PASSED BY THE CITY COUNCIL of the
October, 2024.
ATTEST:
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of Beaumont this the 15th day of
- Mayor Roy West -