Resolution 2020-62RESOLUTION NO.2020-62(R)
'
A RESOLUTION OF THE CITY OF WYLIE, TEXAS
SUSPENDING THE JANUARY 23, 2021 EFFECTIVE DATE
OF COSERV GAS, LTD.'S REQUESTED INCREASE TO
PERMIT THE CITY TIME TO STUDY THE REQUEST AND
TO ESTABLISH REASONABLE RATES; APPROVING
COOPERATION WITH OTHER CITIES IN THE COSERV
GAS, LTD. SERVICE AREA; HIRING LEGAL AND
CONSULTING SERVICES TO NEGOTIATE WITH THE
COMPANY AND DIRECT ANY NECESSARY LITIGATION
AND APPEALS; AUTHORIZING INTERVENTION IN
DOCKET OS-20-00005136 AT THE RAILROAD
COMMISSION; REQUIRING REIMBURSEMENT OF
CITIES' RATE CASE 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 LEGAL COUNSEL
WHEREAS, on or about November 13, 2020, CoSery Gas, Ltd. ("CoServ" or
"Company"), pursuant to Gas Utility Regulatory Act § 104.102, filed with the City of Wylie
' ("City") a Statement of Intent to change gas rates in all municipalities exercising original
jurisdiction within the Company's service area, effective January 23, 2021; and
WHEREAS, the City is a gas customer of CoSery and a regulatory authority with
exclusive original jurisdiction over the rates and charges of CoSery within the City, and
WHEREAS, it is reasonable for the City of Wylie to cooperate with other similarly
situated cities in conducting a review of the Company's application and to hire and direct legal
counsel and consultants and to prepare a common response and to negotiate with the Company
and direct any necessary litigation; and
WHEREAS, the Gas Utility Regulatory Act § 104.107 grants local regulatory authorities
the right to suspend the effective date of proposed rate changes for ninety (90) days; and
WHEREAS, CoSery has filed an application with the Railroad Commission, Docket No.
OS-20-00005136 that could become the docket into which appeals of city action on the CoSery
filing are consolidated; and
WHEREAS, the Gas Utility Regulatory Act § 103.022 provides that costs incurred by
Cities in ratemaking activities are to be reimbursed by the regulated utility.
I THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
WYLIE, TEXAS:
Resolution No. 2020-62(R) CoSery Gas Suspension
7983776
SECTION 1. That the January 23, 2021, effective date of the rate request submitted by I
CoSery on or about November 13, 2020, be suspended for the maximum period allowed by law to
permit adequate time to review the proposed changes and to establish reasonable rates.
SECTION 2. That the City is authorized to cooperate with other cities in the CoSery
service area to hire and direct legal counsel and consultants, negotiate with the Company, make
recommendations to the City regarding reasonable rates and to direct any necessary administrative
proceedings or court litigation associated with an appeal of a rate ordinance and the rate case filed
with the City or Railroad Commission.
SECTION 3. That, subject to the right to terminate employment at any time, the City of
Wylie hereby authorizes the hiring of Thomas Brocato of the law fine of Lloyd Gosselink Rochelle
& Townsend, P.C., and consultants to represent the City in all matters associated with the CoSery
application to increase rates and appeals thereof.
SECTION 4. That intervention in Railroad Commission Docket No. OS-20-00005136 is
authorized.
SECTION 5. That the City's reasonable rate case expenses shall be reimbursed by
CoServ.
SECTION 6. That 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, I
place, and purpose of said meeting was given as required.
SECTION 7. 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 at Lloyd Gosselink Rochelle & Townsend, P.C., 816 Congress Avenue,
Suite 1900, Austin, Texas 78701 (tbrocato@lglawfirm:com).
PASSED AND APPROVED this 8th day of December, 2020.
ATTEST:
Stephanie Storm, City Secretary
Resolution No. 2020-62(R) CoSery Gas Suspension
7983776