Item Coversheet

City Council Meeting
9/10/2024
Agenda Item Transmittal

 Agenda Item: 6.B.

 Agenda Title: Resolution No. 2024-21 - Resolution of The City of Bee Cave, Texas denying Texas Gas Service Company’s requested rate increase; requiring the company to reimburse the city’s reasonable ratemaking 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 the City’s legal counsel.

 Council Action:
 Consider approval

 Department: City Secretary

 Staff Contact: Julie Oakley, City Manager


1. INTRODUCTION/PURPOSE


The purpose of the Resolution is to deny the rate change application proposed by Texas Gas Service.



2. DESCRIPTION/JUSTIFICATION

a) Background


On June 3, 2024, Texas Gas Service Company (“TGS” or “Company”), a Division of ONE Gas, Inc., pursuant to Gas Utility Regulatory Act § 104.102, 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.

In a prior City action, TGS’s rate request was suspended from taking effect for 90 days, the fullest extent permissible under the law, until October 4, 2024.  This time period has permitted the City, through its participation in a coalition of similarly situated cities (“TGS Cities”), to determine that the proposed rate increase is unreasonable.  Consistent with the recommendations of experts engaged by TGS Cities, TGS’s request for a rate increase should be denied.



b) Issues and Analysis

Explanation of “Be It Resolved” Sections:

 

Section 1. This section finds that the Company’s application is unreasonable and should be denied.

 

Section 2.  This section requires TGS to maintain its existing rates within the City.

 

Section 3.  This section states that the City’s reasonable rate case expenses shall be reimbursed by TGS within 30 days of presentation of an invoice to TGS.

 

Section 4.This section recites that the Resolution was passed at a meeting that was open to the public and that the consideration of the Resolution was properly noticed.

 

Section 5. This section provides that the City will notify counsel for TGS and counsel for TGS Cities of the City’s action by sending a copy of the approved and signed Resolution to each counsel.



3. FINANCIAL/BUDGET

Amount Requested Fund/Account No. 
Cert. Obligation GO Funds
Other source Grant title
Addtl tracking info 

4. TIMELINE CONSIDERATIONS



5. RECOMMENDATION


ATTACHMENTS:
DescriptionType
Resolution No. 2024-21Backup Material