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Ord 072-2003 8/5/2003.. a _ ORDINANCE NO. ORDINANCE OF THE CITY COUNCIL OF THE CITY OF WICHITA FALLS, TEXAS, DENYING TXU GAS COMPANY'S REQUEST TO CHANGE RATES IN THE CITY OF WICHITA FALLS, AS A PART OF THE COMPANY'S STATEWIDE GAS UTILITY SYSTEM; PROVIDING A REQUIREMENT FOR A PROMPT REIMBURSEMENT OF COSTS INCURRED BY THE CITY; FINDING AND DETERMINING THAT THE MEETING AT WHICH THIS ORDINANCE WAS PASSED WAS OPEN TO THE PUBLIC AS REQUIRED BY LAW. WHEREAS, on or about May 23, 2003, TXU Gas Company (the "Company ") filed with the City of Wichita Falls ( "City "), a Statement of Intent to change gas rates in all municipalities within the Company's statewide gas utility system effective June 27, 2003; and, WHEREAS, the City has previously extended the effective date of the Company's rate filing; and, WHEREAS, the City has exclusive original jurisdiction to evaluate the Company's Statement of Intent as it pertains to the distribution facilities located within the City, pursuant to TEXAS UTILITIES CODE § §102.001(b) and 103.001; and, WHEREAS, the TEXAS UTILITIES CODE §103.022 provides that costs incurred by the City in ratemaking activities are to be reimbursed by the regulated utility; and, WHEREAS, the City is participating with a coalition of over 120 other Cities in opposition to the Company's filing at the Railroad Commission, said coalition being known as the Allied Coalition of Cities ( "ACC "), in GUD No. 9400 pending at the Commission; and, WHEREAS, ACC and the Company have reached a procedural agreement regarding the schedule for processing GUD No. 9400 that includes TXU's concession to allow one hundred fifteen (115) additional days to process the rate case and ACC's commitment that member Cities expedite the process of getting city action appealed to the Commission; and, WHEREAS, ACC and TXU jointly endorse the City's denial of the Company's rate application pending before the City; and, WHEREAS, counsel for ACC, upon review of the Company's filing and upon consultation with various consultants, recommends findings that the Company's proposal is unjustified and unreasonable. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF WICHITA FALLS, TEXAS, THAT: SECTION 1. The City Council of the City of Wichita Falls finds and determines: (a) TXU's requested return on equity is unreasonable; (b) The basis for proposed consolidation has not been established; (c) The City's jurisdiction to increase pipeline rates has not been established and, therefore, the proposed pipeline cost increase should be disallowed; (d) Revenue requirements should be reduced rather than increased; and, (e) The TXU filing should be denied pursuant to agreement with the Company. SECTION 2. The costs incurred by the City in reviewing the Company's application be promptly reimbursed by the Company. SECTION 3. It is hereby officially found and determined that the meeting at which this ordinance was passed was open to the public as required by law. SECTION 4. A copy of this ordinance, constituting final action on the Company's application, be forwarded to the appropriate designated representative of the Company within ten days as follows: Autry L. Warren, Director Gas Regulatory, TXU Business Services, 1601 Bryan Street, Dallas, Texas 75201 -3402. PASSED AND APPROVED this the 511 day of August, 2003. ATTEST: ity Clerk 1 1 1 r,�„ � u