HomeMy WebLinkAboutOrd 2001-05 TXU Gas Rate.pdfORDINANCE NO. 2001-05
AN ORDINANCE APPROVING THE GENERAL SERVICE RATES
INCLUDING RATE ADJUSTMENT PROVISIONS AND
MISCELLANEOUS SERVICE CHARGES TO BE CHARGED FOR
SALES AND TRANSPORTATION OF NATURAL GAS TO
RESIDENTIAL, COMMERCIAL AND INDUSTRIAL CONSUMERS IN
THE CITY OF ANNA, COLLIN COUNTY, TEXAS, PROVIDING AN
EFFECTIVE DATE THEREFOR, AND PROVIDING FOR THE MANNER
IN WHICH SUCH RATES MAY BE CHANGED, ADJUSTED, AND
AMENDED.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ANNA, TEXAS:
SECTION 1. On March 2, 2001, TXU Gas Distribution, a division of TXU Gas
Company ("Company") filed with the Governing Body of this municipality a Statement of
Intent to Change Residential, Commercial and Industrial Rates charged to consumers
within this municipality. Also filed was the Tariff for Gas Service in the East Region
Distribution System ("Tariff for Gas Service") and the supporting Cost of Service
Schedules ("Schedules"). The Tariff for Gas Service includes Rate Schedules 4200 —
East Region Distribution System Cities, 4201 - Residential Service, 4202 - Commercial
Service, 4203 - Industrial Sales, 4204 - Industrial Transportation, 4208-1 through 4208-
3 - Rate Adjustment Provisions, 9001 through 9007 - Miscellaneous Service Charges
and Rider 4206 - Surcharges.
SECTION 2. The maximum general service rates for sales and transportation of
natural gas rendered to residential, commercial and industrial consumers within the city
limits of Anna, Texas by TXU Gas Distribution, a division of TXU Gas Company, a
Texas corporation, its successors and assigns, are hereby fixed and approved as set
forth in Rate Schedules 4201 - Residential Service, 4202 - Commercial Service, 4203 -
Industrial Sales, and 4204 - Industrial Transportation included in the Tariff for Gas
Service in the East Region Distribution System.
SECTION 3. The Rate Adjustment Provisions set forth in the Tariff for Gas
Service as Rate Schedules 4208-1 Gas Cost Adjustment, 4208-2 Tax Adjustment, and
4208-3 Weather Normalization Adjustment are approved.
SECTION 4. The Company shall have the right to collect such reasonable
charges as are necessary to conduct its business and to carry out its reasonable rules
and regulations. Such miscellaneous service charges are identified in Rate Schedules
9001 through 9007 of the Tariff for Gas Service and are approved. Services for which
no charge is set out may be performed and charged for by the Company at a level
established by the normal forces of competition.
SECTION 5. The aforesaid rate schedules herein approved shall be effective
from and after the effective date set forth in the Statement of Intent, if this ordinance is
passed and approved on or before that effective date.
SECTION 6. The rates set forth in this ordinance may be changed and amended
by either the City or Company in the manner provided by law. Service hereunder is
subject to the orders of regulatory bodies having jurisdiction, and to the Company's
Rules and Regulations currently on file with the City.
Page 1 of 2
SECTION 7. Unless otherwise noted herein, other than TXU Gas Distribution (a
named party), no person or entity has been admitted as a party to this rate proceeding.
SECTION 8. It is hereby found and determined that said meeting at which this
ordinance was passed was open to the public, as required by Texas law, and that
advance public notice of the time, place and purpose of said meeting was given.
PASSED AND APPROVED on this the 13 t
ATTEST:
City Secretary
(Seal)
Page 2 of 2
day of March
Mayor
City of Anna, T
, A. D., 2001.
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TXU Electric & Gas Stephen J. Houle
1601 Bryan St, 32nd Floor Vice President
Dallas,TX 75201
Tel: 214 812 4821
Fax: 214 812 3221
shoulet@txu.com
March 5, 2001
Honorable Ron Ferguson
Mayor, City of Anna
P. O. Box 776
Anna, Texas 75409
Dear Mayor Ferguson:
As you are aware, TXU Gas Distribution recently filed a Statement of Intent to change
the rates for local gas distribution service in the East Region Distribution System,
which includes your city. This letter confirms that if your city agrees (1) to accept
TXU Gas Distribution's proposed rate changes, as filed, and pass an ordinance
approving the proposed rates, and (2) to forego any right to participate in an appeal to
the Railroad Commission of Texas should the Company file one, the Company will
agree as follows:
1. If any other city in the East Region Distribution System
negotiates a settlement with TXU Gas Distribution that results
in rates that are less than the proposed rates as filed by the
Company with that city, the Company will offer those same
settlement terms (reflected as a percentage reduction of the rates
as proposed) to your city, such that no other city in the East
Region Distribution System will receive more favorable rate
treatment than that offered to your city. For example, if City A
negotiates a settlement that results in its rates being 10% less
than those proposed by the Company, your city will be offered
a 10% reduction in the rates as proposed by the Company and
approved in your ordinance;
2. The new rates will not be implemented until after July 5, 2001;
3. Customers in your city will not be surcharged for any rate case
expenses associated with this Statement of Intent or any appeal
to the Railroad Commission of Texas, should one be filed.
Passage of an ordinance approving the new rates as filed will constitute your city's
acceptance of this offer. Of course, if your city accepts this offer, and the Company
does not reach a mutually agreeable settlement with any other city in the East Region
Distribution System that results in rates that are less than the proposed rates as filed, or
chooses not to appeal the denial by a city of a Statement of Intent, rates in your city
will be set as proposed in the Statement of Intent and passed in the ordinance, and will
not be adjusted to comport with the results of any appeal, should one occur.
We appreciate your consideration of the Company's proposal. Please feel free to call
me if you have any questions.
Sincerely,
/gd