| Agenda Item: | 7.
| | Agenda Title: | Discuss and consider action on Resolution No. 2024-15 suspending the July 8, 2024 Effective Date of Texas Gas Service Company’s Requested Increase to permit the City time to study the request and to establish reasonable rates; Approving Cooperation With Other Cities In The Texas Gas Service Company’s Central-Gulf Service Area; Hiring Legal And Consulting Services To Negotiate With The Company And Direct Any Necessary Litigation And Appeals; Authorizing Intervention In Gud No. 17471 At The Railroad Commission; Requiring Reimbursement Of Cities’ Rate Case Expenses; Finding That The Meeting At Which This Resolution Is Passed Is Open to the Public as Required By Law; Requiring Notice Of This Resolution To The Company And Legal Counsel.
| Council Action:
| Disuss and consider
| | Department: | City Manager
| | Staff Contact: | Julie Oakley, City Manager
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1. INTRODUCTION/PURPOSE
On June 3, 2024, Texas Gas Service Company (“TGS” or “Company”) a Division of ONE Gas, Inc. (“ONE Gas”), pursuant to Subchapter C of Chapter 104 of the Gas Utility Regulatory Act, filed its Statement of Intent to change gas rates at the Railroad Commission of Texas (“RRC”) and in all municipalities exercising original jurisdiction within the incorporated areas of the Central-Gulf Service Area (“CGSA”), effective July 8, 2024.
2. DESCRIPTION/JUSTIFICATION
a) Background
The resolution suspends the July 8, 2024 effective date of the Company’s rate increase for the maximum period permitted by law to allow the City, working in conjunction with other similarly situated cities with original jurisdiction served by TGS, to evaluate the filing, to determine whether the filing complies with the law, and if lawful, to determine what further strategy, including settlement, to pursue.
b) Issues and Analysis
The law provides that the Company’s rate request cannot become effective until at least 35 days following the filing of the application. The law permits the City to suspend the rate change for 90 days after the date the rate change would otherwise be effective. If the City fails to take some action regarding the filing before the effective date, TGS’s rate request is deemed approved. Thomas Brocato, Principle with Lloyd Gosselink Attorneys at Law, will be present to review the resolution with City Council and answer any questions.
3. FINANCIAL/BUDGET
| Amount Requested | There is no direct cost to the city. | | Fund/Account No. | | | Cert. Obligation | | | GO Funds | | | Other source | | | Grant title
| | | Addtl tracking info | |
4. TIMELINE CONSIDERATIONS
The City must take action to suspend the deadline for final action on TGS' rate application by Monday, July 8th or the new rates become effective.
5. RECOMMENDATION
Staff recommends City Council consider approval of the resolution.
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