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CITY OF KYLE, TEXAS
Texas Gas Grip Resolution
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Meeting Date: 4/7/2020
Date time:7:00 PM |
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Subject/Recommendation: |
Resolution of the City of Kyle 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. ~ Jerry Hendrix, Chief of Staff |
Other Information: |
On December 20, 2019, Texas Gas Service Company, a Division of ONE Gas, Inc., (“TGS” or “Company”), pursuant to Gas Utility Regulatory Act § 104.102, filed its Statement of Intent to change gas rates in all municipalities exercising original jurisdiction within the City of Beaumont, the Central Texas Service Area, and Gulf Coast Service Area and to consolidate these Service Areas into the proposed Central-Gulf Coast Service Area, effective February 6, 2020.
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 May 6, 2020. This time period has permitted the City, through its participation in the CTSA Cities and GCSA Cities, to determine that the proposed rate increase and consolidation are unreasonable. Consistent with the recommendations of experts engaged by CTSA Cities and GCSA Cities, TGS’s request for a rate increase and consolidation of service areas should be denied.
Accordingly, the purpose of the Resolution is to deny the rate change application proposed by TGS.
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 City’s reasonable rate case expenses, through the CTSA Cities and GCSA Cities, 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 CTSA Cities and GCSA Cities of the City’s action by sending a copy of the approved and signed Resolution to each counsel.
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Legal Notes:
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Budget Information:
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