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Ordinance 2009-28 ORDINANCE NO. 2009-28 AN ORDINANCE OF THE CITY OF WYLIE, COLLIN COUNTY, TEXAS, FINDING THAT THE CURRENT RATES OF COSERV GAS LTD. ARE UNREASONABLE; APPROVING COSERV GAS LTD.'S REVISED AND UNCONTESTED TARIFFS; SETTING THE EFFECTIVE DATE OF NEW TARIFFS AS OCTOBER 1, 2009; FINDING RATE CASE EXPENSES REASONABLE; FINDING THAT ANY RELIEF REQUESTED BY COSERV GAS LTD. NOT SPECIFICALLY GRANTED HEREIN IS DENIED; FINDING THAT THE MEETING AT WHICH THIS ORDINANCE IS PASSED IS OPEN TO THE PUBLIC AS REQUIRED BY LAW; PROVIDING FOR NOTICE OF THIS ORDINANCE TO COSERV GAS LTD.; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, on or about December 18, 2008, CoSery Gas Ltd. "CoServ" or "Company filed with the City of Wylie a Statement of Intent to change gas rates in all municipalities within the CoSery System; 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 City suspended the initial effective date of CoServ's rate request, and CoSery subsequently extended the effective date of the rate increase to allow the City to investigate the Company's filing and to consider settlement of the request; and, WHEREAS, failure to take action regarding CoServ's rate request by September 20, 2009, will cause CoServ's filed request to become effective for all CoSery customers within the municipal limits; and, WHEREAS, the City joined the Coalition of Cities Served by CoSery "Cities a group of other cities similarly affected by CoServ's rate request to jointly hire counsel and an independent consultant to review CoServ's application; and, WHEREAS, after consideration of the Company's filing and the report issued by Cities' expert, the City concludes that CoServ's current rates are unreasonable and should be changed; and, WHEREAS, the Company and Cities have reached an agreement as to CoServ's filed request to increase rates conditioned upon final approval by Cities; and, Ordinance No. 2009 -28 CoSery Gas Rates and Tariffs WHEREAS, the Company's requested increase in system -wide annual revenues of $2,915,367 is excessive, and the Company has agreed to an increase in system -wide base revenues of $1,300,000, and to retain its current schedule of miscellaneous service charges; and, WHEREAS, Cities' rate case expenses incurred in this proceeding are reasonable and necessary in the amount specified below and should be reimbursed by CoServ; and, WHEREAS, the Company's rate case expenses in the amount specified below are reasonable and necessary; and WHEREAS, the City has reviewed the tariffs proposed by the Company in settlement between the Company and the Coalition of Cities Served by CoSery and has determined that approval of the tariffs is in the best interest of the City and its residents, results in just and reasonable rates, and, therefore, should be approved by the City; and, WHEREAS, since the Company filing is based upon system -wide standardized rates and tariffs, it would be inappropriate for any city or residents of any city to receive benefits not enjoyed by the entire system. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF WYLIE, COLLIN COUNTY, TEXAS, THAT: SECTION 1. It is in the best interest of the City and its residents to adopt the revised tariffs attached hereto to this Ordinance as Exhibit A that reflect the settlement agreement reached between CoSery and the Coalition of Cities Served by CoServ. SECTION 2. The adoption of the attached revised tariffs provides for just and reasonable rates to be charged system -wide by the Company. SECTION 3. Cities rate case expenses in the amount of $59,439 are reasonable and necessary and shall be reimbursed by CoServ. CoServ's rate case expenses are found to be reasonable and necessary in the amount of $325,655. Rate case expenses shall be recovered as provided in Rate Schedule 9 (RIDER RCE RATE CASE EXPENSES) of the tariffs in Exhibit A hereto, using surcharge of $0.00271 per Ccf, including interest as specified in the Rider. SECTION 4. The effective date of the new tariffs is October 1, 2009. SECTION 5. No specific rate base, return, revenue or cost adjustments or rate Obrnto making methodologies are approved in reaching the revenue requirements settlement that leads to the rates and charges adopted by this ordinance. Ordinance No. 2009 -28 CoSery Gas Rates and Tariffs SECTION 6. Relief requested by CoSery not specifically addressed herein is denied. SECTION 7. It is hereby officially found and determined that the meeting at which this Ordinance is passed is open to the public as required by law and that public notice of the time, place and purpose of said meeting was given as required. SECTION 8. A copy of this ordinance, constituting final action on the CoSery application, be forwarded to the appropriate designated representative of the Company, Charles D. Harrell, Chief Financial Officer, CoSery Gas Ltd., 7701 South Stemmons, Corinth, Texas 76210 -1842, and to Geoffrey Gay, legal counsel to Cities, within 10 days. SECTION 9. This Ordinance shall take effect immediately from and after its passage and acceptance and it is accordingly so ordained. DULY PASSED AND APPROVED by the City Council of the City of Wylie, Texas, Collin County, on this the 8 day of September, 2009 &i^ -e.2. Eric Hogue, Ma or g May Or OF j,i t ,iger 1 r v- Carole Ehrlich, it e r� cretary 11; APPROVED AS TO FORM: *18870 1;i '!ay et so. City Attorney 6L16-164--"j"-ili t ot.rh A-. 1,4 y k.e.-{,t 11 Ordinance No. 2009 -28 CoSery Gas Rates and Tariffs C8.� Media, Inc. �I�e JFc�rmerBbilCe �iineg Murphy Monitor The Princeton Herald The Sachse News THE WYLIE NE1VS r i�.. STATE OF TEXAS f COUNTY OF COLLIN J Before me, the undersigned authority, on this day personally appeared Chad Engbrock, publisher of The Wylie News, a newspaper regularly published in Collin County, Texas and having general circulation in Collin County, Texas, who being by me duly sworn, deposed and says that the foregoing attached City of Wylie Ordinance No.2009-24, 2009-25, 2009-27, 2009-28, 2009-29 was published in said newspaper on the following dates, to-wit: September 16, 2009 l� Chad Engbrock, Publisher Subscr►bed and sworn before me on this, the day of 2009 to certify which witness my hand and seal of office. I� j f L(-� .��C,�� l Notary Public n and for The State of Texas My cammission expires ��I a .x ,.,.r z ��.�.P� Sonia A Duggan y My Commission Expires �;G y'.!%�� v 09/02�2012 ll �OF� a q �w� MurphyJSachse/Wyiie Office i 10 N. Ballard P.O. Box 369 Wylie, TX 75098 972-442-5515 fax 972-�]2-4318 Farmersville/Princeton Office 101 3. Main P.O. Sox 512 Fa�me;isville, TX 754d2 972-72#1�397 fax 972-782-7(7?3 September 16 17. 2009 3C OitDIA1e�NCE NO. 2�09_�g AN ORDINAI�TCE,QF TNE CITY pp ��±T�� N �OL��V`TY; "'��AS, FINDING TI�4`T THE �URRENT. RATES OF CO�B�tW GAS LTD. ARE UNREA- S ONAB APFROVIAIG COSERV GAS LTD:°S R�VISED� AND UNCQNTEST- ED TARIFFS; SE'T- '1"IAT� THE E�FEC- 3'IVE DATE OF �TEW TARI�FS AS C�CTO- B�I� 1, 2009; FII�1D; ING RATE CA�E EXPENSES REA- SOT�IABLE; f�"IND- I1VG 'ITHAT �iY RE�.I��' '1�$Qi7FST= ED B'Y�-CO��RV U�A�' LTD. I"�T��" SFyE�:�T-, CALLY� GXtAI�i'i'E�D HER��N IS DENIED; FINDiNG T.HRT T'HE MEETING� AT WI-�IC�-I THIS ORDI- NANCE IS PASSED IS OPEN T4 THE PUBLIC AS REQUIRED BY LAW;' PROVTDiNG FOR NOTICE OF THI'S ORDINANCE TO COSERV Gt�S 1..TD.; AND PROVIDING AAt EFF'�iCTIVE DATE.