Ordinance 2021-31ORDINANCE NO. 2021-31
ORDINANCE OF THE CITY OF WYLIE FINDING THAT THE
SETTLEMENT AGREEMENT BETWEEN THE CITY AND COSERV
GAS, LTD. IS REASONABLE; ORDERING COSERV GAS, LTD. TO
IMPLEMENT THE RATES AGREED TO IN THE SETTLEMENT
AGREEMENT; REQUIRING REIMBURSEMENT OF CITIES' RATE
CASE EXPENSES; FINDING THAT THE MEETING AT WHICH THIS
ORDINANCE IS PASSED IS OPEN TO THE PUBLIC AS REQUIRED BY
LAW; REQUIRING NOTICE OF THIS ORDINANCE 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 ("GURA") § 104.102 filed a Statement of Intent to Increase
Rates with the Railroad Commission of Texas (the "Commission") within the unincorporated areas
it serves in the State of Texas and filed with the City of Wylie 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 Company agreed to extend the proposed effective date to March 14, 2021;
and
WHEREAS, the City of Wylie has exclusive original jurisdiction over the rates, operations,
and services of a gas utility within the municipality, pursuant to GURA § 103.001; and
WHEREAS, GURA § 103.021 grants a municipality authority to require a utility to submit
information as necessary to make a reasonable determination of rate base, expenses, investment,
and rate of return in the municipality; and
WHEREAS, the City of Wylie suspended the effective date of the proposed rate change
for ninety (90) days pursuant to GURA § 104.107; and
WHEREAS, the City of Wylie joined with other similarly situated cities, the Steering
Committee of Cities Served by CoSery Gas, Ltd. ("CoSery Gas Cities"), to conduct a review of
the Company's application by hiring and directing legal counsel and consultants to prepare a
common response and to negotiate with the Company and direct any necessary litigation; and
WHEREAS, on or about May 14, 2021, the CoSery Gas Cities reached a Settlement
Agreement resolving all issues relating to the Company's Statement of Intent to Increase Rates;
and
WHEREAS, the CoSery Gas Cities members and attomeys recommend that the City of
Wylie approve this settlement agreement setting rates; and
WHEREAS, GURA § 103.022 provides that reasonable costs incurred by cities in
ratemaking activities are to be reimbursed by the regulated utility.
Ordinance No. 2021-31 CoSery Settlement Page 1
THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
WYLIE, TEXAS:
Section 1. That the City approves the Settlement Agreement reached between the CoSery
Gas Cities and the Company and directs the Company to implement the rates indicated in the
Settlement Agreement.
Section 2. That the City's reasonable rate case expenses shall be reimbursed by the
Company.
Section 3. That 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 the public notice of the time,
place, and purpose of said meeting was given as required.
Section 4. A copy of this Ordinance 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).
DULY PASSED AND APPROVED by the City Council of the City of Wylie, Texas,
this 8th day of June 2021.
Matthew Porter, Mayor
ATTEST:1_- , A ^ ' 1'
Stephanie Storm, City Secretary
Ordinance No. 2021-31 CoSery Settlement
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