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HomeMy WebLinkAboutRes 2004-01 ; . RESOLUTION NO. 2004-01 RESOLUTION OF THE CITY OF WEST UNIV,ERSITY PLACE SUSPENDING THE EFFECTIVE DATE OF CENTERPOINT ENERGY ENTEX'S REQUESTED RATE CHANGES TO PERMIT THE CITY TIME TO STUDY THE REQUEST AND TO ESTABLISH REASONABLE RATES; APPROVING COOPERATION WITH OTHER CITIES WITHIN THE HARRIS, MONTGOMERY AND FORT BEND COUNTY AREA DISTRIBUTION SYSTEM TO CREATE A STEERING COMMITTEE TO DIRECT THE EFFORTS OF LEGAL COUNSEL AND CONSULTANTS NECESSARY FOR RATEMAKlNG OR LITIGATION; REQUIRING REIMBURSEMENT OF CITIES' RATE CASE EXPENSES; AUTHORIZING INTERVENTION IN ANY RATEMAKING PROCEEDING AT THE RAILROAD COMMISSION THAT RELATES TO THE COMPANY'S FILING; REQUIRING NOTICE OF THIS RESOLUTION TO THE COMPANY \VHEREAS, 011 or about Decel11ber 19, 2003, Cel1terPoint Ellergy Entex, a division of CenterPoint Energy Resources Corp. ("Entex") filed with the City of West Ul1i.versity Place a Statement of Intent to change gas rates ill variou.s municipalities witllil1 tIle Harris, MOl1tgomery and Fort Bend County area effective February 1, 2004; al1d. WHEREAS, it is reaso.nable for the City of West University Place to cooperate witl1 otller cities in a review of the COmpaI1Y's application. and create a Steering Committee to coordinate and direct tIle worl( of lawyers and conSllltants aJld to oversee recoI1Uuendations to illdividllal cities and to direct settlement negotiations and any l1ecessary litigation; and WHEREAS, tile Gas Utility Reglllatory Act grants tIle City tIle rigllt to Sllspend E.ntex's proposed effective date of Febrllary 1, 2004 for 90 days; and. WHEREAS, the Gas Utility Regulatory Act provid.es tllat costs il1curred by Cities in ratemaking activities are to be reilubursed by the regulated utility; aIld WHEREAS, tIle Gas Utility Regulatory Act grants local regulatory authorities tIle rigllt to intervene in rate proceedings filed at tile Railroad Commission. THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF WEST UNIVERSITY PLACE,..TEXAS: 1. That tIle effective date of tIle tariff cllanges sublnitted by Entex on or about December 19, 2003, be suspended to the l11axilnu.m exteJlt provided by law to perlnit adeqllate time to review the proposed CllaIlges atld to establish reasol1able rates. 2. Tllat t]le City is authorized to cooperate with other Cities withil1 tIle Entex Distribution System to create a Steering COlmnittee to coordinate alld direct tIle worlc of lawyers and COl1sultallts and. to oversee reconunendatiollS to individllal cities and to direct settlelnellt negotiations and llilY l1ecessary litigation and appeals. 1 3. That the City's reasonable rate case expenses shall be reimbursed by Entex. 4~ That the City is authorized to intervene in any Railroad Commission proceeding that relates to the Entex rate request. 5. That a copy of this suspension resolution be sent to Charles J. Harder of Entex. ATTEST: 2 RESOLUTION NO. 2004-01 RESOLUTION OF THE CITY OF WEST UNIVERSITY PLACE SUSPENDING THE EFFECTIVE DATE OF CENTERPOINT ENERGY ENTEX'S REQUESTED RATE CHANGES TO PERMIT THE CITY TIME TO STUDY THE REQUEST AND TO ESTABLISH REASONABLE RATES; APPROVING COOPERATION WITH OTHER CITIES WITI-IIN THE HARRIS, MONTGOMERY AND FORT BEND COUNTY AREA DISTRIBUTION SYSTEM TO CREATE A STEERING COMMITTEE TO DIRECT THE EFFORTS OF LEGAL COUNSEL AND CONSULTANTS NECESSARY FOR RATEMAKING OR LITIGATION; REQUIRING REIMBURSEMENT OF CITIES' RATE CASE EXpENSES; AUTHORIZING INTERVENTION IN ANY RATEMAKING PROCEEDING AT THE RAILROAD COMMISSION THAT RELATES TO THE COMPANY'S FILING; REQUIRING NOTICE OF THIS RESOLUTION TO THE COMPANY WHEREAS, on or about December 19, 2003, CenterPoint Energy Entex, a division of CenterPoint Energy Resources Corp. ("Entex") filed with the City of West University Place a Statement of Intent to change gas rates in various municipalities within the Harris, Montgomery and Fort Bend County area effective February 1, 2004; and WHEREAS, it is reasonable for the City.ofWest University Place to cooperate with other cities in a review of the Company's application and create a Steering Committee to coordinate and direct the work of lavvyers and consultants an.d to oversee recommendations to individual cities and to direct settlement negotiations and any necessary litigation; and WHEREAS, the Gas Utility Regulatory Act grants the City the right to suspend Entex's proposed effective date of February 1, 2004 for 90 days; and WHEREAS, the Gas Utility Regulatory Act provides that costs incurred by Cities in ratemaking activities are to be reimbursed by the regulated utility; and. WHEREAS, the Gas Utility Regulatory Act grants local regulatory authorities the right to intervene in rate proceedings filed at tile Railroad. Commission. THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF WEST UNIVERSITY PLACE, TEXAS: 1. That the effective date of the tariff changes submitted by Elltex on or ab01Jt December 19, 2003, be suspended to the maximum extent provided by law to permit adequate time to review the proposed chan.ges and to establish reasonable rates. J 2. That the City is authorized to cooperate with other Cities within the Entex Distribution System to create a Steering Committee to coordinate and direct the worl( of lawyers and consultants and to oversee recommendations to individual cities and to direct settlement negotiations and any necessary litigation and appeals. 1 3.. That th~ City's reasonable rate case expenses shall be reimbursed by Entex.. 4~ That the City is authorized to intervene in any Railroad Commission proceeding that relates to the Entex rate request~ 5. That a copy of this suspension resolution be sent to Charles J.. Harder of Entex. ATTEST: .~. (ld~ ;i~f City 2 City of West University Place *' Recycled Paper January 16, 2004 Glenn Cole Regional Manager CenterPoint Energy Entex 900 Lockwood Houston, Texas 77020 via facsimile ~~ 713~ 674~5035 Subject: Suspension of the operation of a schedule of rates ('Proposed Rates") filed by CenterPoint Energy Entex with the City of West University Place, Texas ("City") in connection with a statement of intent to increase rates on or about Deceniber 19, 2003 (' 'Rate Filing") Dear CenterPoint Energy Entex & Mr~ Cole: This letter is sent as formal notice, under the Texas Gas Ut.ility Code, that the City is suspending the Proposed Rates pending a hearing and decision on the Proposed Rates and the Rate Filing~ The suspension is for 90 days after the date the Proposed Rates would otherwise be effective, although the City retains the discretion to make an earlier decision or disposition. Additional information about th.is matter, including a statement of the City~ s reasons for suspension, are described in the attached resollltion~ which is made a part hereof for all purposes~ Please send future correspondence regarding this matter to the in care of the undersigned, at the address shown in the letterhead, above~ Yours very truly, CITY OF WEST UNIVERSITY PLACE 7.~ L;Z~ .' By:' ~ .f(,.,tUrfI/ City Manag. r Attachments - 2 3800 Universit:y BoulevaI4d · "Vest University Place, Texas 77005 0 713/668-4441