R-2023-55 Suspending Rate Request CoServ GasTOWN OF PROSPER, TEXAS
RESOLUTION NO. 2023-55
A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF PROSPER,
TEXAS, SUSPENDING THE SEPTEMBER 1, 2023, EFFECTIVE DATE OF
COSERV GAS, LTD.'S REQUESTED RATE CHANGE TO PERMIT THE TOWN
TIME TO STUDY THE REQUEST AND TO ESTABLISH REASONABLE RATES;
APPROVING COOPERATION WITH OTHER MUNICIPALITIES IN THE
COSERV SERVICE AREA, TO HIRE LEGAL AND CONSULTING SERVICES
AND TO NEGOTIATE WITH THE COMPANY AND DIRECT ANY NECESSARY
LITIGATION AND APPEALS; REQUIRING REIMBURSEMENT OF THE
STEERING COMMITTEE OF MUNICIPALITIES SERVED BY COSERV GAS'
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; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, on or about July 28, 2023, CoSery Gas, Ltd ("CoServ" or "Company"),
pursuant to Gas Utility Regulatory Act § 104.102 filed with the Town of Prosper ("Town") a
Statement of Intent to change gas rates in all municipalities exercising original jurisdiction within
its service area, effective September 1, 2023; and
WHEREAS, the Town is a gas utility customer and a regulatory authority under the Gas
Utility Regulatory Act ("GURK) and under Chapter 104, § 104.001 et seq. of GURA has exclusive
original jurisdiction over CoServ's rates, operations, and services within the Town; and
WHEREAS, in order to maximize the efficient use of resources and expertise, it is
reasonable for the Town to cooperate with other municipalities 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, it is not possible for the Town to complete its review of CoServ's filing by the
September 1, 2023, effective date proposed in CoServ's Statement of Intent; and
WHEREAS, the Town will need an adequate amount of time to review and evaluate
CoServ's rate application to enable the Town to adopt a final decision as a local regulatory
authority with regard to CoServ's requested rate increase; and
WHEREAS, GURA § 104.107 grants local regulatory authorities the right to suspend the
effective date of proposed rate changes for ninety (90) days; and
WHEREAS, GURA § 103.022 provides that costs incurred by municipalities in ratemaking
activities are to be reimbursed by the regulated utility.
NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF
PROSPER, TEXAS, THAT:
SECTION 1
All of the above premises are found to be true and correct legislative determinations of the
Town of Prosper, Texas, and are hereby approved and incorporated into the body of this
Resolution as if copied in their entirety.
SECTION 2
The September 1, 2023, effective date of the rate request submitted by CoSery on July
28, 2023, shall be suspended for the maximum period allowed by law to permit adequate time to
review the proposed changes and to establish reasonable rates.
SECTION 3
The Town is authorized to cooperate with other municipalities in the CoSery service area,
CoSery Gas Cities, and subject to the right to terminate employment at any time, hereby
authorizes the hiring of Thomas L. Brocato of the law firm of Lloyd Gosselink Rochelle and
Townsend, P.C. and consultants, to review CoServ's filing, negotiate with the Company, make
recommendations to the Town 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 Town or Texas Railroad Commission.
SECTION 4
The Town's reasonable rate case expenses shall be reimbursed by CoServ.
SECTION 5
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 6
A copy of this Resolution shall be sent to CoServ, care of Charles D. Harrell, CoSery Gas
Ltd., 7701 South Stemmons, Corinth, Texas 76210-1842, and to Thomas L. Brocato, General
Counsel to OCSC, at Lloyd Gosselink Rochelle & Townsend, P.C., 816 Congress Avenue, Suite
1900, Austin, TX 78701.
SECTION 7
This Resolution shall be effective from and after its passage by the Town Council.
DULY PASSED AND APPROVED BY THE TOWN COUNCIL OF THE TOWN OF
PROSPER, TEXAS, ON THIS 22ND DAY OF AUGUST, 2023.
ATTEST:
Michelle Lewis Sirianni, Town Secretary
David F. Bristol, Mayor
Resolution No. 2023-55, Page 2
APPROVED AS TO FORM AND LEGALITY:
Terrence S. Welch, Town Attorney
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Resolution No. 2023-55, Page 3