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Resolution 2004-22 RESOLUTION NO. 2004-2200 RESOLUTION OF THE CITY OF WYLIE SUSPENDING THE EFFECTIVE DATE OF COSERV GAS LTD'S REQUESTED RATE CHANGES TO PERMIT THE CITY TIME TO STUDY THE REQUEST AND TO ESTABLISH REASONABLE RATES; APPROVING COOPERATION WITH OTHER CITIES WITHIN THE COSERV SYSTEM TO HIRE LEGAL AND CONSULTING SERVICES AND TO NEGOTIATE WITH THE COMPANY AND DIRECT ANY NECESSARY LITIGATION; REQUIRING REIMBURSEMENT OF CITIES' RATE CASE EXPENSES; AUTHORIZING INTERVENTION IN THE PROCEEDING AT THE RAILROAD COMMISSION; REQUIRING NOTICE OF THIS RESOLUTION TO THE COMPANY. WHEREAS, on or about August 25, 2004, CoServ Gas Ltd. ("CoServ"), filed with the City of Wylie a Statement of Intent to change gas rates in all municipalities within the CoServ System; and WHEREAS, it is reasonable for the City of Wylie to cooperate with other cities in a review of the Company's application and to coordinate the hiring and direction oflegal counsel and consultants and to negotiate with the Company and direct any necessary litigation; and WHEREAS, the Gas Utility Regulatory Act grants local regulatory authorities the right to suspend the effective date of proposed rate changes; and WHEREAS, the Gas Utility Regulatory Act provides that costs incurred by Cities in ratemaking activities are to be reimbursed by the regulated utility; and WHEREAS, the Gas Utility Regulatory Act grants local regulatory authorities the right to intervene in rate proceedings filed at the Railroad Commission. THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF WYLIE, TEXAS: 1. That the effective date of the tariff changes submitted by CoServ on or about August 25, 2004, be suspended to permit adequate time to review the proposed changes and to establish reasonable rates. 2. That the City is authorized to cooperate with other Cities within the CoServ System to hire and direct legal counsel and consultants, negotiate with the Company, make recommendations regarding reasonable rates and to direct any necessary litigation associated with an appeal of a rate ordinance and the rate case filed at the Railroad Commission. Resolution 2004-22(R) Suspension of Rate Increase for CoServ Gas Ltd. 3. That the City's reasonable rate case expenses shall be reimbursed by CoServ. 4. That the City is authorized to intervene in any appeal at the Railroad Commission regarding CoServ's rate case filed on or about August 25,2004. 5. That a copy of this suspension resolution be sent to Charles D. Harrell, Chief Financial Officer, CoServ Gas Ltd, 7701 South Stemmons, Corinth, Texas 76210-1842. PASSED AND APPROVED this 28th day of September, 2004. """0" "F" ','~~/II "" ~I "V ,!I// " ~ "' ........... r(" ........ .$'" .e -.. ~ ..... CJ .. .. ~ ", ~ ! ~~ \\'-~ ~ ( SEAL ~ = :. \ ~~-~.:: ..... ...... .;" ...... ~ .... ,.- ~ *' I"" '. ",'" .... "'", 1"1/)"."., ........ S " ....///11 1../ E: TE'i--\,,"'" 11111 ,,'III""" ATTEST: Resolution 2004-22(R) Suspension of Rate Increase for CoServ Gas Ltd.