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HomeMy WebLinkAboutRES 111225-5.B - Texas Gas Service Rates Increase DenialRESOLUTION NO. I I I Z1.5-5-.& AN RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GEORGETOWN, TEXAS, AUTHORIZING THAT THE TEXAS GAS SERVICE COMPANY'S STATEMENT OF INTENT TO INCREASE RATES WITHIN THE CITY SHOULD BE DENIED; FINDING THAT THE CITY'S REASONABLE RATE CASE EXPENSES SHALL BE REIMBURSED BY THE COMPANY; 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; REPEALING CONFLICTING RESOLUTIONS; INCLUDING A SEVERABILITY CLAUSE; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, the City Council desires to establish optimal gas rates within City boundaries; and WHEREAS, Georgetown is a gas utility customer of Texas Gas Service Company, a Division of ONE Gas, Inc., ("TGS" or "Company") within the unincorporated areas of the Central - Gulf, West North, and Rio Grande Valley Service Area, and a regulatory authority with an interest in the rates and charges of TGS; and WHEREAS, the City is a member of Cities Served by Texas Gas Service Company (such participating cities are referred to herein as "TGS Cities"), a coalition of similarly situated cities served by TGS that have joined together to efficiently and cost effectively review and respond to natural gas issues affecting rates charged in TGS' Central -Gulf, West North, and Rio Grande Valley Service Area; and WHEREAS, on or about June 30, 2025, TGS filed with the City a Statement of Intent to Increase Rates seeking to increase natural gas revenues by $41.1 million annually and to all customers residing in the City; and WHEREAS, TGS Cities has coordinated its review of TGS' Statement of Intent filing and designated attorneys and consultants to resolve issues in the Company's filing; and WHEREAS, through review of the application, TGS Cities' consultants determined that TGS' proposed rates are excessive; and WHEREAS, TGS Cities' members and attorneys recommend that TGS Cities members deny the Statement of Intent; and WHEREAS, the City Council finds it to be in the best interest of the public to temporarily suspend the proposed rate increases, as set out herein. Resolution Number: it 1 2.;?"5 — 5' `''D Page 1 of 2 Subject: "(QX4.5 C-10 S SG( J' Date Approved: It IizlZot 5 NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF GEORGETOWN, TEXAS: Section 1. The meeting at which this resolution was approved was conducted in compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551. Section 2. The facts and recitations contained in the preamble of this resolution are hereby found and declared to be true and correct and are incorporated by reference herein and expressly made a part hereof, as if copied verbatim. Section 3. That the rates proposed by TGS to be recovered through its gas rates charged to customers located within the City limits, are hereby found to be unreasonable and shall be denied, the Company shall continue to charge its existing rates to customers within the City, and the City's reasonable rate case expenses shall be reimbursed in full by TGS within 30 days of the adoption of this Resolution. A copy of this Resolution shall be sent to TGS representatives Judy Hitchye, Texas Gas Service Company, (Judy. Hitchye@on egas. com), and to Thomas Brocato at Lloyd Gosselink Rochelle & Townsend, (tbrocato@lglawfirm.com). Section 4. All resolutions that conflict with the provisions of this resolution are hereby repealed, and all other resolutions of the City not in conflict with the provisions of this resolution shall remain in full force and effect. Section 5. If any provision of this resolution, or application thereof, to any person or circumstance, shall be held invalid, such invalidity shall not affect the other provisions, or application thereof, of this resolution, which can be given effect without the invalid provision or application,, and to this end the provisions of this resolution are hereby declared to be severable. Section 6. The Mayor is hereby authorized to sign this resolution and the City Secretary to attest. This resolution shall become effective and be in full force and effect immediately in accordance with the provisions of the City Charter of the City of Georgetown. PASSED AND APPROVED on the of ATTEST: THFlCITY,OF GEORGETOWN: Robyn Dcn ore, City Secretary Josh Sc oeder, Mayor APPROVED AS TO FORM: 'OL A J-- - Skye asson, City Attorney Resolution Number: Page 2 of 2 Subject: Date Approved: