| Agenda Item: | 7.
| | Agenda Title: | Discuss and consider action on Ordinance No. 338, an Ordinance suspending the proposed gas reliability infrastructure program interim rate adjustment under Section 103.001 of the Texas Utilities Code by Texas Gas Service Company.
| Council Action:
| Approve or deny
| | Department: | City Secretary
| | Staff Contact: | Kaylynn Holloway, City Secretary
|
1. INTRODUCTION/PURPOSE
2. DESCRIPTION/JUSTIFICATION
a) Background
Texas Gas Service (TGS) continues to explore opportunities to extend their lines to serve Bee Cave residents. They are currently in the process of extending lines on RR 620 to provide service to Gateway to Falconhead.
b) Issues and Analysis
TGS has filed for a rate increase with the Public Utility Commission to cover their costs for adding infrastructure to their system. This is called a Gas Reliability Infrastructure Program (GRIP) filing, which means interim rates would go into effect on May 2, 2017. If the rates are suspended, as proposed, the suspension of the new rates expires on June 16, 2017.
In the past, the City of Austin has used Fox & Smolen as consultants to review the GRIP filing to ensure that all expenses and rate increases are proper.
3. FINANCIAL/BUDGET
| Amount Requested | | | Fund/Account No. | | | Cert. Obligation | | | GO Funds | | | Other source | | | Grant title
| | | Addtl tracking info | |
4. TIMELINE CONSIDERATIONS
A decision to suspend has to be made prior to May 2nd .
5. RECOMMENDATION
Adopt Ordinance No. 338 to suspend the rates.
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