09-113 - OORDINANCE NO. 09-113
AN ORDINANCE OF THE TOWN OF PROSPER, 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 Town of Prosper a Statement of Intent to change gas rates in
all municipalities within the CoSery System; and,
WHEREAS, the Town has exclusive original jurisdiction to evaluate the Company's
Statement of Intent as it pertains to the distribution facilities located within the Town,
pursuant to Texas Utilities Code §§ 102.001(b) and 103.001; and,
WHEREAS, the Town suspended the initial effective date of CoServ's rate request, and
CoSery subsequently extended the effective date of the rate increase to allow the Town 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 Town 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,
Ordinance No. 09-113 Page 1
WHEREAS, after consideration of the Company's filing and the report issued by Cities'
expert, the Town 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,
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 Town 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 Town and its residents, results in
just and reasonable rates, and, therefore, should be approved by the Town; 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 TOWN COUNCIL OF THE
TOWN OF PROSPER, COLLIN COUNTY, TEXAS, THAT:
SECTION 1. It is in the best interest of the Town 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
Ordinance No. 09-113 Page 2
recovered as provided in Rate Schedule 9 (RIDER RCE — RATE CASE EXPENSES) of
the tariffs in Exhibit A hereto, using surcharge of $4,00271 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 making
methodologies are approved in reaching the revenue requirements settlement that leads to
the rates and charges adopted by this ordinance.
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 S. 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 Pirmci'al 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 TOWN COUNCIL OF THE TOWN
OF PROSPER, COLLIN COUNTY, TEXAS, ON THIS THE $'a DAY OF
SEPTEMBER, 2009.
APPROVED:
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