Resolution 2023-31 RESOLUTION NO. 2023-31(R)
A RESOLUTION OF THE CITY OF WYLIE, TEXAS FINDING THAT
COSERV GAS,LTD.'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 THE CITY'S LEGAL COUNSEL.
WHEREAS, the City of Wylie, Texas ("City") is a gas utility customer of CoSery Gas,
Ltd. ("CoServ"or"Company") and is a regulatory authority under the Gas Utility Regulatory Act
("GURA")with exclusive original jurisdiction over CoServ's rates,operations,and services within
the City; and
WHEREAS, the City cooperated with a coalition of similarly situated cities served by the
Company that have joined together to facilitate the review and response to natural gas issues
affecting the rates charged in CoServ's service area("CoSery Gas Cities" or"Steering Committee
of Cities Served by CoSery Gas, Ltd."); and
WHEREAS, on or about July 28, 2023, CoSery filed with the City a Statement of Intent to
Increase Rates seeking to increase natural gas rates by$10.3 million annually in incorporated areas;
and
WHEREAS, the City passed Resolution No. 2023-13(R) to suspend the effective date of
CoServ's requested rate increase for 90 days, the maximum period allowed by law; and
WHEREAS,CoSery Gas Cities hired and directed legal counsel and consultants to prepare
a collective response to the Company's requested increase, which resulted in a conclusion that
CoServ's proposed rates are not reasonable; and
WHEREAS, CoSery Gas Cities' attorneys recommend that members deny the requested
increase; and
WHEREAS, GURA § 103.022 provides that costs incurred by CoSery Gas Cities in
ratemaking activities are to be reimbursed by the regulated utility.
NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF WYLIE, TEXAS:
Section 1. The rates proposed by CoSery 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.
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Section 2. The Company shall continue to charge its existing rates to customers within
the City.
Section 3. The City's reasonable rate case expenses shall be reimbursed in full by
CoServ.
Section 4. It is hereby officially found and determined that the meeting at which this
Resolution is passed is open to the public as required by law and the public notice of the time,
place, and purpose of said meeting was given as required.
Section 5. That a copy of this Resolution shall be sent to CoServ, care of Charles
Harrell, CoSery Gas, Ltd., 7701 South Stemmons Freeway, Corinth, Texas 76210
(Charrell@coserv.com); and to Thomas Brocato, counsel for CoSery Gas Cities, Lloyd Gosselink
Rochelle & Townsend, P.C., 816 Congress Avenue, Suite 1900, Austin, Texas 78701
(tbrocato@lglawfirm.com).
DULY PASSED AND APPROVED,by the City Council of the City of Wylie, Texas on
this 14'h day of November 2023.
Matthew Porter, Mayor
ATTEST:
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Stephanie Storm, City Secretary
APPRAVED AS FORM:
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Abe athy Roeder Boyd& Hullett P.C.
Ryan Pittman, City Attorneys
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